California AB 1405
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Legislation & Regulation · California
AB 1405 — Artificial intelligence: auditors: registration[1]
California, United States[1]
Enacted statute[1]
Chapter 178 (2026); Government Code §§ 11549.80–11549.86[1]
Approved and chaptered September 9, 2026[1]
Registry deadline and unregistered-audit prohibition: January 1, 2029.[1]
September 10, 2026[1]
California AB 1405 establishes an AI Auditor Registry administered by the Government Operations Agency and requirements for registered auditors. It was approved and chaptered September 9, 2026 as Chapter 178.[1]
Scope and requirements
A covered AI audit assesses internal controls, processes or systems implemented for an AI system or model that are necessary for compliance with state law. The agency must establish the registry and a public misconduct-reporting mechanism by January 1, 2029. Beginning that date, a person may not offer, sell or conduct a covered AI audit without registration.[1]
Registered auditors must disclose business information, relevant credentials and audit procedures, update materially changed registration information within 90 days, and provide auditees with reports addressing scope, results, deficiencies, limitations and a signed compliance statement. Audit evidence and reports must be retained for at least 10 years. Registration numbers must appear conspicuously in advertising for covered services.[1]
Independence and enforcement
The law addresses conflicts of interest, auditing one’s own work, employment negotiations during an audit and certain recent employment relationships. Reasonable audit compensation alone is not a prohibited conflict. It protects specified employee disclosures and misconduct reports against interference and retaliation. Qualifying accountancy professionals and firms can satisfy specified reporting and independence provisions through the professional standards identified in the law; this is not a blanket exemption from registration.[1]
The agency may investigate alleged violations. Violations can lead to removal from the registry and referral to the Attorney General or another enforcement authority, with notice and an opportunity to cure or contest removal. A separate referral process applies to accountancy professionals and firms in good standing. Registration does not constitute state endorsement.[1]
Timeline
Approval and chaptering occurred September 9, 2026. The registry deadline and prohibition on unregistered covered audits are January 1, 2029. These future dates should not be read as a claim that the registry is already operating.[1]