AB-1405 Artificial intelligence: auditors: registration

What happened

The September 3 enrolled AB 1405 proposes an AI Auditor Registry and prohibits offering, selling or conducting a covered audit without registration beginning January 1, 2029 if enacted. A covered audit assesses controls, processes or systems necessary for compliance with state law, and the auditor acts for a third party. Those definitions distinguish the proposal from every internal or voluntary technical review. By the September 5 cutoff, the available version was enrolled legislation, so the 2029 date was a proposed target rather than an enacted compliance deadline.

The proposed framework includes registration disclosures, material updates within 90 days, auditee reports addressing results and limitations, and at least 10 years of supporting records. It provides independence and competence safeguards, protection for employee reporting, and specific professional-standard routes for qualifying accountancy professionals and firms. Removal involves notice and a reasonable opportunity to cure or contest, with separate accountancy complaint procedures. Registration is expressly not state endorsement. These proposed conditions require final legislative and agency action before an organization can rely on an operational registry or registration obligation.

Why it matters

Prospective auditors and audit purchasers can assess scope and independence while recognizing that the registry requirement is not yet enacted.

Sources

• AB-1405 Artificial intelligence: auditors: registration, bill historyOfficial · California Legislature · Source review 2026-10-15
• AB1405 artificial intelligence auditors, September3,2026 enrolled textOfficial · California Legislature · 2026-09-03 · Source review 2026-10-15