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Professional indemnity explained
Inflo is a UK digital audit platform that, according to Inflo, combines working papers, client collaboration and data analytics with AI-enabled capabilities. It matters because audit firms using it upload client ledgers to a third-party cloud, and remain accountable for both the data and the audit conclusions.
Part of: Audit firm PI cover
In short
Inflo describes itself as a digital audit platform with working papers, client collaboration and data analytics, including AI-enabled capabilities. Inflo says it holds ISO/IEC 27001:2022 certification and a SOC 2 Type II opinion, and hosts data in Azure, with its EMEA instance in Ireland and backup in the Netherlands. HLB International announced on 8 September 2026 that its member firms would get access to the platform. For audit firms, the PI point is that analytics over whole populations change what the firm can see, not who is responsible. Data location and client confidentiality sit alongside PI and cyber.
Inflo is a UK company (it shows a UK company registration number on its website). In plain terms, its platform lets an audit firm request and receive client data and documents, analyse the client's ledgers, and record the audit work in one place. The points below are Inflo's own description or that of a firm announcing its use.
We found no explicit Inflo statement that users must review AI output, and Inflo's security page does not say whether customer data is used to train AI models. Ask Inflo directly if either matters to your risk assessment.
Inflo's security page says it is certified to ISO/IEC 27001:2022, audited by LRQA, and has a SOC 2 Type II report from Prescient Assurance. It says data is encrypted in transit using TLS and at rest using 256-bit AES, and that "You and your clients own your data".
| Instance (per Inflo) | Primary site | Backup site |
|---|---|---|
| EMEA | North Europe (Ireland) | West Europe (Netherlands) |
Inflo says it runs separate US, Canada and APAC instances. Its page does not state a UK data region. For UK audit firms, that means client personal data in ledgers and documents is usually held in Ireland, with backup in the Netherlands. The Information Commission (formerly the ICO) says that all EEA countries have full adequacy for UK GDPR transfer purposes, which usually simplifies the transfer analysis. Clients may still ask where their data is held, and firms should be able to answer accurately.
Ingesting a client's whole general ledger means a firm can run analytics over every transaction rather than a sample. That can improve risk identification, but it also creates a record of what the firm could have seen. If an analytic flags an item and nobody follows it up, a claimant may later point to that flag. See AI full population testing and AI in risk assessment and planning.
Under ISQM (UK) 1, firms performing audits had to have systems of quality management designed and implemented by 15 December 2022. Paragraph 32(f) expects appropriate technological resources to be "obtained or developed, implemented, maintained, and used" to support quality management and engagement performance. A platform holding working papers and client data is a technological resource in that sense.
The FRC's Generative and Agentic AI Guidance of 30 March 2026 says it "codifies good practice" and that "the human auditor is always accountable". Its earlier AI in audit guidance of 26 June 2025 "is not prescriptive and does not introduce new regulatory requirements" and covers tools from third-party providers. Neither names Inflo or any other commercial vendor, so neither is an approval. See certifying AI tools under ISQM (UK) 1.
Audit firm PI usually responds to claims that the audit was negligent, whether or not a platform was involved, subject to the policy terms. Cyber cover usually responds to data breaches, system compromise and related costs, including notification and incident response. Because a platform like this holds client ledgers, both policies matter. See audit firm PI cover explained and PI versus cyber for professionals.
A firm runs journal analytics over a full ledger. A cluster of late manual journals is flagged but closed off without investigation. A fraud later emerges and the company's administrators allege the audit should have found it. This is a professional negligence claim; PI usually responds, subject to the policy terms, and the firm's documentation of its follow up will be central.
An audit team member's account is compromised and an attacker downloads client documents shared through the firm's collaboration workspace. The issue is a security incident affecting client data, so cyber cover is usually the first policy to look at, and the Information Commission may need to be notified.
See also AI audit tools and PI for audit firms, the auditors AIpedia and our accountants PI insurance guide.
Apex arranges PI and cyber cover for audit firms; a broker reads every enquiry.
Inflo's security page says all data is hosted in Azure data centres. Its EMEA instance has its primary site in North Europe (Ireland) and backup in West Europe (Netherlands). It does not state a UK data region. Check which instance your firm uses and describe the location accurately to clients.
Transfers to the EEA are usually straightforward: the Information Commission (formerly the ICO) says all EEA countries have full adequacy for UK GDPR purposes. The firm still needs a lawful basis, proper contracts with Inflo as a processor, and accurate privacy information for clients.
Not necessarily, but it changes the evidence. Analysing a full population can identify more risks, and a flagged item that nobody follows up may be used against the firm in a claim. Good documentation of how flags were resolved is usually the best protection.
No. The FRC's 2025 and 2026 AI guidance documents name no commercial AI tool and are not approval schemes. Firms decide whether a tool is appropriate under ISQM (UK) 1 and remain accountable for audit quality.
HLB International announced on 8 September 2026 that its member firms would get access to Inflo, and a partner at Menzies (HLB UK) is quoted in that notice. We do not name other users.
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Book a PI programme review Get a PI quoteApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
