The Audit Challenge

LinkedIn Post 09: The Audit Challenge

Auditors of valuations using synthetic comparables face a challenge: How do you assess whether algorithm-generated evidence is reliable?

Traditional audit methods don't work. You can't verify an MLS listing for a transaction that never happened. You can't interview the buyer and seller. You can't pull county records.

Instead, you need algorithmic audit: Algorithm specifications, training data description, validation results, parameter assumptions. These become your audit evidence.

This is why documentation matters. If you don't record how the synthetic comparable was generated and what tests it passed, auditors have nothing to audit.

Documenting synthetic comparable provenance isn't a compliance burden. It's what makes audit possible.

#Appraisal #Audit #Governance #Valuation #AI