The Big Four auditors have been asked to explain what measures they are taking to prevent professionals from using ChatGPT and other AI tools to cheat on exams. 

The Financial Reporting Council (FRC) has quizzed Britain’s biggest auditing firms and professional accountancy bodies amid fears that rule-breakers could use AI to cheat the system.

The UK accounting watchdog said that it continues to “work closely” with these organisations to ensure they have robust systems in place to detect, monitor and combat any cheating which could undermine the quality of audits. 

It is understood KPMG UK now warns employees before and during mandatory audit training that cheating using AI is not tolerated and rule-breakers are at risk of losing their jobs.

Deloitte UK also tells students that using AI tools during exams is not permitted and will be considered gross misconduct.

The Institute of Chartered Accountants in England and Wales (ICAEW), said it proactively works with regulators to monitor exam malpractice risks on an ongoing basis.

The 144-year old organisation, which has more than 208,000 members, said that audit exams are completed in a fully-invigilated environment meaning candidates could not cheat using AI chatbots without being detected. 

An ICAEW spokesman added: “However, we are constantly monitoring the use of AI and the risk that it poses.”

The professional body, which was established by a Royal Charter in 1880 and supervises around 11,500 firms, is now investigating how AI can be used to “enhance the exam experience in the future” as the technology is used more in the workplace.

“Our exams are always moving towards replicating the skills required in the current and future professional accountancy environment,” an ICAEW spokesman added.