Independence as the Foundation for Trust in an Evolving Market
Trust is what our capital markets run on—investors need to rely on company-reported information. That reliance is not incidental. It is supported by a system of standards, oversight, and independent assurance built to enable transparent and consistent reporting. Auditor independence is central to that system.
The Sarbanes-Oxley Act of 2002 (SOX) was a defining moment for the audit profession and for US capital markets. SOX strengthened auditor independence requirements, the quality of financial reporting, and reinforced the importance of audit committee oversight, helping to better align the audit process with the needs of preparers, investors, and the public interest. More than two decades later, those principles remain foundational to audit quality and to the financial reporting ecosystem.
The Sarbanes-Oxley Act of 2002 (SOX) was a defining moment for the audit profession and for US capital markets.
Independence matters because assurance is most valuable when it is objective. Investors need confidence that company financial statements and disclosures have been evaluated through a third-party lens. They also need to know auditors are applying professional skepticism, exercising judgment, and focusing on what matters.
That role is becoming even more important as companies adopt emerging technologies, including artificial intelligence (AI), advanced data analytics, and digital assets. While these innovations can create tremendous opportunities, they also introduce new complexities in systems, controls, and reporting. In this environment, independent auditors help bring discipline to change by evaluating information through established standards, methodologies, and a deep understanding of risk.
That role is becoming even more important as companies adopt emerging technologies including artificial intelligence (AI), advanced data analytics, and digital assets.
The tools auditors use also continue to evolve. AI and analytics can help auditors analyze larger data sets, identify patterns, and focus attention on areas that may require additional scrutiny, but technology elevates the audit; it does not replace the need for independence, objectivity, and professional judgment.
SOX helped reinforce a simple but enduring principle: independent audits serve the public interest. As markets continue to evolve, that principle remains essential. Whether companies are reporting on traditional financial results, digital asset activity, or AI-enabled processes, independent assurance can enhance confidence in the information investors use to allocate capital. That trust is the foundation of resilient markets.