KYE Accounting Governance Pack™ for AI-generated financial entries & statutory filings.
When an AI agent drafts a journal entry, classifies a transaction, prepares a set of statutory accounts, or assembles a Companies House filing and that entry starts to move toward being posted to the ledger, approved as the statutory accounts, or filed with the Registrar, the consequential moment has arrived. The KYE Accounting Governance Pack™ governs that action boundary: it binds every consequential action to a named accountant's or director's authority, records the due diligence before the action, holds the entry advisory until a named signing professional signs off — with two-person sign-off on the irreversible Companies House filing — and seals it into a replay-provable provenance record. KYE Protocol™ governs whether the entry may proceed — it does not compute the numbers, prepare the accounts, or judge whether the accounts are correct.
AI now drafts financial entries and statutory accounts — and the Companies House filing is the irreversible action where accountability concentrates.
Generative bookkeeping copilots, automated transaction-classification engines, accounts-preparation tools, and audit-support assistants are producing entries that move quickly toward the ledger, the statutory accounts, and the public record. The high-value problem is not the arithmetic — it is the action boundary. Three facts converge:
- The consequential moment is the posting, the approval, and the filing — not the draft. An entry in a model's output is inert; a journal posted to the ledger, a set of statutory accounts approved, or a filing submitted to Companies House is consequential. The Companies House filing is irreversible — a public-record submission under the Companies Act 2006 (s.441/s.442) that cannot be unwound. Director and accountant accountability attaches at the moment an entry proceeds — exactly where governance is weakest.
- The standards already exist; the enforcement of authority does not. The Companies Act 2006's adequate-records (s.386), true-and-fair (s.393), and director-responsibility (s.414) obligations, UK GAAP FRS 102/105 recognition and measurement, the ISA (UK) auditing standards, the FRC Ethical Standard, and SOX §404 review controls define what is required. KYE Protocol™ governs whether an AI-generated entry may proceed under those standards, under whose authority, with due diligence recorded before the action.
- Provenance is now an audit expectation. An entry posted under a SOX §404 control, the digital records behind a Companies Act 2006 s.386 filing, and a UK MTD figure with an unbroken digital link must each carry documented data integrity and lineage. KYE Protocol™ produces a signed, replay-derivable provenance pin at the moment the action commits.
- This is a governance wedge, not an accounting engine. KYE Protocol™ does not compete with the bookkeeping, accounts-production, or filing tools. It governs the action boundary they feed — the named-authority + due-diligence + two-person sign-off + provenance layer the AI accounting ecosystem currently lacks.
Survives an auditor, an FRC review, or a Companies House spot check — due-diligenced, two-person-signed-off, and derivable from public keys alone.
- Due-diligenced by construction. An AI-generated entry that moves toward a posting, approval, or filing must carry a recorded due-diligence result — competence (FRC Ethical Standard / ISA (UK) 220), recognition-and-measurement / true-and-fair basis (FRS 102 / Companies Act 2006 s.393), and an accounting-records-adequacy / fraud-risk screen (s.386; ISA (UK) 240/315) where applicable. An unscreened, low-confidence, or records-deficient entry is refused at the action-admissibility gate.
- Sign-off-gated, two-person on the filing. An entry stays advisory until a named accountant-of-record, engagement partner, or responsible finance director records sign-off. The irreversible Companies House filing additionally requires GovernedUI two-person sign-off — the preparing accountant and an approving director. Unreviewed AI-driven consequential actions are refused and routed dual-channel.
- Authority-bound. Every consequential action maps to a recorded named-authority decision — the agent, the entry / statement / filing artefact, the intended action, and the named accountant or director under whose authority it proceeds. An AI authorised for one purpose cannot proceed under another.
- Replay-provable provenance. A signed provenance pin binds the model and version, the inputs and pinned source data, the recognition / measurement basis, the due-diligence result, and the authority outcome — audit-grade data integrity an auditor, an FRC reviewer, or the Registrar can verify offline, against published keys alone, satisfying Companies Act 2006 s.386 records adequacy and UK MTD digital links.
- Framework-anchored. Companies Act 2006, UK GAAP FRS 102, ISA (UK), the FRC Ethical Standard, SOX §404, and UK MTD each map to a control row — with a 90-day attestation cadence.
Every consequential accounting action — authority-bound at the action boundary.
One coherent spine governs three specializations — statutory-filing, bookkeeping-classification, and audit-support — with no parallel packs. Each AI-generated entry that moves toward a consequential action flows through the same four rules, on the canonical KYE Protocol™ envelopes.
- 1 — Entry proposed. An AI agent produces a journal entry, a transaction classification, a set of statutory accounts, or a Companies House filing that begins to move toward being posted, approved, or filed.
- 2 — Due diligence + authority check. The Action Admissibility™ Gate verifies a recorded due-diligence result (competence + true-and-fair / recognition-and-measurement basis + records-adequacy / fraud-risk screen) and the named-authority under which the entry proceeds, under the §25 Edge Governance Safety Floor. No due diligence, no authority = no action.
- 3 — Advisory pending sign-off. The entry is advisory until a named accountant-of-record, engagement partner, or responsible finance director records sign-off — with two-person sign-off (accountant and director) required on the irreversible Companies House filing. Low-confidence or unreviewed entries are refused and routed dual-channel.
- 4 — Provenance pin sealed. The runtime emits kye.purpose.request.v1 + kye.purpose.admissibility.v1 + kye.evidence.decision_map.v1 + kye.evidence.pack.v1 in lockstep, binding the model and version, the pinned source data, the recognition / measurement basis, the named signing professional, and the Authority Finality™ outcome — signed and replay-derivable for an auditor, an FRC, or a Companies House spot check.
Bound to the AI accounting authority + due-diligence + provenance perimeter.
The pack binds the canonical KYE™ artefact set to the UK accounting and audit standards perimeter. Every claim resolves to a control row on the bound framework — the six regulations are consumed by the rule pack, never re-mapped (four are new authority registries; SOX §404 and UK MTD are reused from the tax-governance spine, grafted not duplicated).
| Framework | Control area | Pack coverage |
|---|---|---|
| Companies Act 2006 | Adequate records (s.386), true & fair (s.393), director responsibility (s.414), filing with the Registrar (s.441/s.442) | partial |
| UK GAAP FRS 102/105 | Recognition & measurement, accounting policies, disclosure, micro-entity regime | partial |
| ISA (UK) | Professional scepticism (ISA 200), fraud (ISA 240), risk assessment (ISA 315), forming the opinion (ISA 700) | partial |
| FRC Ethical Standard | Integrity, objectivity & independence, professional competence, threats & safeguards | partial |
| SOX §404 (reused) | Management review controls, documentation & data integrity over the financial reporting | partial |
| UK MTD (reused) | Digital record-keeping, unbroken digital links from source data to submitted figure | partial |
Honest scope. KYE Protocol™ governs the authority, due diligence, sign-off, and provenance of the AI instruction at the action boundary — whether the entry may proceed. It does not compute the numbers, prepare the accounts, run the accounting engine, or judge whether the accounts are correct. Partial coverage means the bound surface satisfies the control area when paired with the firm’s own accounting preparation and attestation.
Qualified AI accounting partners — apply through the Foundry.
The KYE Accounting Governance Pack™ is a §68 sector product productised through the KYE Sector Pack Foundry™ Build tier; commercial distribution is value-based, qualification-gated, and disclosed under NDA to qualified applicants.