What it is
People at a firm are already using AI tools. A policy decides which tools are approved for which data, what must be reviewed, and what is off limits, so client confidentiality and professional responsibility are not left to individual choice.
The policy states five principles, a table of data classes against approved tools, permitted and prohibited uses, documentation expectations on engagements, an approval path for new tools, incident reporting, training and acknowledgment. It names no tools. Keep the approved list separately.
When to use it
- Setting the firm’s first AI policy.
- Responding to a client request for the firm’s AI controls.
- After an incident with an unapproved tool.
What’s inside
- Principles: responsibility, confidentiality, evidence, transparency, lawfulness
- Data class table and approved tool list rules
- Permitted and prohibited use table
- Documentation, approval, incident, training and acknowledgment sections
Standard cited
This template follows ET 1.700 / Firm practice. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Does the AICPA Code apply to AI tools?
The confidentiality rules in ET 1.700 apply to how client information is handled, including with AI tools and the providers behind them. The policy builds those rules into data classes.
Who is responsible for AI output?
The person who uses it. The policy says output is checked and owned as if the person wrote it, and that a tool is never a reviewer of record.
Do clients need to be told?
The policy says clients are told of material use as engagement terms and firm policy require. Use the client consent form where the firm collects consent.
Related templates
- AI Tool Approval Request Form
- AI Output Review Log (Excel)
- AI Use Case Inventory and Risk Register (Excel)
- Review Checklist for AI-Assisted Work
Last updated 11/05/2026. All free templates.