CBA monitors bill to create enrollment for auditors of AI systems; staff raise questions about scope and oversight

The California Board of Accountancy reviewed and discussed Assembly Bill 1405 (referred to in committee as AB 1405), a measure that would establish an enrollment process for auditors of artificial intelligence systems.

Staff summary and concerns: At the Legislative Committee meeting staff described the bill’s intent "to establish an enrollment process within the California government operations agency for those who audit artificial intelligence or AI," and said they had submitted concerns to the author’s office. Staff and committee members flagged key open questions: who will be eligible to perform AI audits, what standards will govern the audits, and whether the bill’s language adequately defines qualifications and procedures.

Discussion points: Committee members asked whether the auditors referenced in the bill would be CPAs and whether the audits would be audits of AI systems (technical/system audits) rather than financial statement audits. A committee member summarized the confusion: “In the bill, it says artificial intelligence auditors. That kind of makes it sound like AI is doing the auditing. No. It's auditors of the artificial intelligence.” Staff confirmed the wording was potentially confusing and that the bill lacks specifications about audit methods and practitioner qualifications.

Status and staff position: AB 1405 had passed a policy committee and was scheduled for consideration in the Senate Appropriations Committee. CBA staff said they had no formal position on the bill and would continue to offer technical input to the author and stakeholders to address the drafting gaps.

Next steps: Staff will continue discussions with the author and stakeholders to seek clarifying amendments on practitioner qualifications and audit standards before the Appropriations hearing.