{
  "id": 1373742,
  "title": "FRC tasks auditors, regulators on responsible AI use",
  "url": "https://urgent.news/2026/08/16/frc-tasks-auditors-regulators-on-responsible-ai-use",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-16T23:38:50.000Z",
  "source": {
    "name": "Punch",
    "slug": "punch",
    "url": "https://punchng.com/frc-tasks-auditors-regulators-on-responsible-ai-use/"
  },
  "original_language": "en",
  "account": "The Financial Reporting Council of Nigeria (FRC) has cautioned auditors, regulators, and corporate boards to ensure that AI enhances audit integrity without eroding public trust in financial reporting. At the 2026 Audit and Assurance Leadership Summit in Lagos, FRC Executive Secretary Rabiu Olowo highlighted that while AI, predictive analytics, and automated auditing enhance fraud detection, technological progress should not overshadow ethical principles. Olowo emphasized that AI's role in the future of assurance will be significant but that trust in financial reporting fundamentally relies on human integrity, ethical leadership, and sound judgment.\n\nOlowo cautioned against practices that blur the line between preparing financial statements and independently auditing them, as such blurs can create self-review threats that compromise objectivity. He stressed that audit integrity is unattainable when independence is compromised, and disclosed that FRC audit quality reviews have uncovered instances of management interference.\n\nOlowo also addressed the \"audit expectation gap,\" clarifying that management, not auditors, bears primary responsibility for preparing financial records and internal controls. He underscored that clear financial oversight is crucial for Nigeria's ambition to achieve a $1tn economy.\n\nThe FRC's Permanent Secretary, Chris Isokpunwu, speaking on behalf of the Minister of Industry, Trade, and Investment, Jumoke Oduwole, cautioned against blindly trusting technology. He pointed out that technology may alter assurance tools but must not alter principles, citing algorithmic bias, poor data, and cybersecurity threats as risks necessitating regulatory oversight.\n\nEmmanuel Akeni, Head of Systems Audit at Credit Direct Finance, presented the lead paper at the summit. He demonstrated how ransomware attacks and unverified AI outputs could jeopardize data integrity, stressing that auditors must thoroughly validate AI tools before making assurance decisions.",
  "summary": "The FRC urges auditors and regulators to ensure AI strengthens audit integrity and public trust in financial reporting, warning against ethical compromises Read More: https://punchng.com/frc-tasks-auditors-regulators-on-responsible-ai-use/",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}