FRC issues AI guidance; IAASB increases commitment to technology

October 12, 2024

Also, a review confirms the effectiveness of an IFRS standard addressing revenue recognition across global markets.

The UK Financial Reporting Council (FRC) published new guidance to assist practitioners in their growing use of artificial intelligence and machine learning (AI/ML) in actuarial work.

Specifically, the revised Technical Actuarial Guidance: Models aims to support practitioners applying the principles-based Technical Actuarial Standard (TAS) 100, providing examples relating to model bias, understanding and communication, governance, and stability when using AI/ML models in technical actuarial work.

"As the use of artificial intelligence and machine learning increases in actuarial work, it remains essential to keep pace with the rise of new technologies and emerging opportunities," Mark Babington, the FRC's executive director of regulatory standards, said in a news release.

IAASB adopts new approach to technology

The International Auditing and Assurance Standards Board adopted a Technology Position that represents a "significant step forward in the IAASB's ongoing commitment to enhancing the quality and relevance of its standards in the face of rapid technological advancement", according to a news release.

"The pace of technological change presents the audit and assurance profession with opportunities and challenges," IAASB Chair Tom Seidenstein said. "Our new Technology Position reflects the IAASB's commitment to ensuring our standards evolve alongside these developments. We are setting a course that promotes innovation while safeguarding quality and consistency in audits and assurance globally."

The IAASB is conducting a gap analysis to ensure its current standards align with technological advancements, according to the release.

[Financial Management Magazine]