Financial Audit Prover MCP Connector for Claude

AI agents generate financial analysis that looks numerically sound but violates fundamental accounting principles. They apply IFRS rules to US GAAP entities. They produce figures without audit trails. They skip materiality assessment entirely. And they reference 'required disclosures' without naming a single ASC topic or SEC regulation.

The Problem It Solves

AI-generated financial reasoning fails for five specific reasons:

• GAAP violation — Applies the wrong accounting standard. Mixes IFRS concepts (revaluation model, IAS references) with US GAAP entities. Cites 'GAAP requires' without naming the specific ASC topic.
• Broken audit trail — Conclusions based on 'financial data' or 'per the records' without tracing to source documents. No GL account numbers, no invoice references, no confirmation results.
• Cross-check failure — Numbers between financial statements don't reconcile. Net income doesn't tie to equity rollforward. Cash flow statement doesn't reconcile to balance sheet cash.
• Materiality blindness — Ignores SAB 99's dual requirement for quantitative thresholds AND qualitative evaluation. 'Immaterial' without a number is not an assessment.
• Missing disclosure — References 'appropriate disclosures' without identifying which ASC topic requires the footnote, which Reg S-K item requires the narrative, or which SOX section requires certification.

How It Works

Financial Audit Prover uses 5 Decision Pivots grounded in US accounting standards:

1. gaapCompliant — Correct ASC topic applied? Recognition, measurement, and presentation criteria met? No IFRS leakage?
2. auditTrailComplete — Every number traces to source documents? GL entries, invoices, confirmations, bank statements? Per PCAOB AS 2810?
3. crossCheckPassed — Balance sheet equation balances? Income ties to equity? Cash flow reconciles to cash change? Account rollforwards prove out?
4. materialityAssessed — Quantitative threshold stated (5% pre-tax per SAB 99)? Qualitative factors evaluated (trend masking, covenant impact, compensation effect)?
5. disclosureComplete — Specific ASC footnote topics identified? Reg S-K items named? Reg S-X rules cited? SOX certifications addressed?

The engine catches IFRS leakage by detecting international standard terminology in US GAAP analysis. It validates that audit trails reference specific documents — not 'based on financial data.' It requires both quantitative AND qualitative materiality per SAB 99.

US Financial Framework Coverage

• FASB ASC Codification — The authoritative source of US GAAP
• SEC Regulation S-X — Financial statement form and content requirements
• SEC Regulation S-K — Non-financial disclosure requirements (MD&A, risk factors)
• PCAOB Auditing Standards — AS 2201 (internal controls), AS 2401 (fraud), AS 2810 (evidence)
• Sarbanes-Oxley Act — Section 302 (CEO/CFO certification), Section 404 (internal controls)
• SAB 99 — Quantitative and qualitative materiality assessment
• IRS Internal Revenue Code — Title 26 tax compliance where applicable