Independent Auditor
Auditor without recent business ties to the employer or AEDT vendor.
How the laws define this
Both selections from New York City Local Law 144 - Automated Employment Decision Tools agree that an independent auditor must be an objective, impartial third party responsible for evaluating Automated Employment Decision Tools to assess bias and disparate impact. However, the provisions diverge on how they define and enforce this independence. The first definition under New York City Local Law 144 - Automated Employment Decision Tools establishes a structural standard based on past activities, disqualifying any person or entity involved in developing or using the tool, or holding a material business relationship with the employer or AEDT vendor in the preceding three years. Conversely, the second definition under New York City Local Law 144 - Automated Employment Decision Tools focuses on conflict restrictions and financial terms, stipulating that the third party must be free from conflicts of interest and receive no remuneration from the auditee beyond reasonable audit fees.
Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.
What it triggers
- Under New York City Local Law 144, an independent auditor must conduct impartial evaluations of Automated Employment Decision Tools to assess disparate impact.source
- Under New York City Local Law 144, an independent auditor must have had no material business relationship with the employer or the AEDT vendor in the preceding three years to ensure objectivity in bias audits.
Definitions (2)
A person or entity that is not involved in using or developing the AEDT being audited and that has had no material business relationship with the employer or the AEDT vendor in the preceding three years, thereby ensuring objectivity and impartiality in conducting the bias audit.
An independent auditor is a third party, free from conflicts of interest, responsible for conducting impartial evaluations of Automated Employment Decision Tools. They receive no other remuneration from the auditee beyond reasonable audit fees, ensuring objectivity in assessing disparate impact.
Not to be confused with
An assurance provider offers third-party AI assurance services generally, while an independent auditor specifically conducts bias audits for AEDTs without recent business ties to the employer or vendor.
An AI system assessor validates AI systems against controls, whereas an independent auditor focuses on impartial bias audits of AEDTs free from conflicts of interest.
Questions and answers
What qualifies someone as an independent auditor under NYC Local Law 144?
An independent auditor is a third party free from conflicts of interest, with no material business relationship with the employer or AEDT vendor in the preceding three years. They receive no remuneration beyond reasonable audit fees to maintain objectivity.
What does an independent auditor do for AEDTs?
An independent auditor conducts impartial bias audits and evaluations of Automated Employment Decision Tools to assess disparate impact.
Can an AEDT developer audit their own tool as an independent auditor?
No, an independent auditor must not be involved in using or developing the AEDT and must have had no material business relationship with the employer or vendor in the preceding three years.
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