“California’s recognition of independent verification sets a new bar for the audit industry and broader accountability in finance. The policy also opens the market to qualified technology providers beyond the Big Four.
As AI reshapes financial work, verification must extend beyond audit to the financial systems businesses use every day. Greater efficiency and lower audit costs offer meaningful benefits to businesses, but accountability requires evidence supporting the technology’s conclusions. Continuous, independent verification across all financial data can provide insight beyond sampling alone. Ultimately, success means accurate output that businesses and regulators can trust.”
Lucas Ward, Cofounder and CEO, Oath Verified; Cofounder of Kin
“We applaud California’s leadership in establishing a framework for credible AI assurance. Recognizing auditor independence as a professional obligation is an important foundation. The policy also opens the market to qualified technology companies that can help shape evaluation standards as the framework develops.
The next step is to establish clear evaluation criteria for AI audit technology, meaning what evidence is required to demonstrate accuracy, how performance should be measured, and how errors should be identified and addressed. Machine checking machine, supported by independent human judgment, can strengthen the rigor of that evaluation.”
Christina Ho, Chief Assurance Officer, Oath Verified & former PCAOB board member
