expandev

Software auditors can trace. Regulators can question.

For banks, fintechs, and capital-markets firms building with AI under SOX, internal audit, and model-risk scrutiny.

The regulatory frame

The standards and statutes in scope.

SOX (Sarbanes-Oxley)

Internal controls over financial reporting, with strict change management and segregation of duties.

Model-risk management (e.g. SR 11-7)

Documented rationale, ownership, and validation for decision logic.

ISO/IEC 42001 & the EU AI Act

An AI management system and risk-tiered obligations wherever AI participates in development.

How governed development maps to that frame

From statute to working trail.

Segregation of duties

Multi-stage approval with named, distinct authors and approvers on every artifact.

Change management

Every increment is versioned and linked to its originating requirement and architectural decision.

Model-risk documentation

The AI BOM gives each output a rationale, an owner, and an end-to-end lineage.

Regulatory scenario walkthrough

The interest-calculation module.

Illustrative scenario — not a customer case.

A bank builds an AI-assisted interest-calculation module. In Business, an analyst declares the calculation rule and its acceptance criteria; a separate reviewer approves them. In Architecture, the calculation library is pinned to an approved version. Development generates the code, and the Analyzer's Quality Gate rejects an unsanctioned dependency at the source. A compliance officer — distinct from both the author and the developer — signs off.

Months later, an external auditor asks: who changed this rate logic, when, and on whose authority? The Analyzer answers with a single timestamped chain — requirement → architecture → code → three named approvers. There is no archaeology across tickets and commits. The SOX change-management and segregation-of-duties evidence is the development trail.

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Software auditors can trace. Regulators can question. · Expandev