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This work investigates the conditions that cause substrate-independent audits to lose informativity, focusing on capacity dimensions.

May 11, 2026Open Access

The Audit Asymmetry Problem: Capacity conditions for substrate-independent audit

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This work investigates the conditions that cause substrate-independent audits to lose informativity, focusing on capacity dimensions.
Analyzed audit relationship capacity across three dimensions: bandwidth, semantic reach, and self-reference depth.
Used historical instances, including the 2008 Gaussian-copula collapse, to exemplify capacity asymmetry.
Reframed previous failure conditions in relation to the defined capacity dimensions.
Identified that when auditor capacity falls short on any dimension relative to task requirements, audit judgments become ineffective.
Illustrated the failures of previous audit conditions through the lens of theoretical frameworks from Shannon, Rice, and Gödel.
Concluded that certain externality conditions can be repaired procedurally, while others cannot be substituted.

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This note explores how audit effectiveness is influenced by bandwidth, semantic reach, and self-reference depth under capacity constraints.

Ghjuvan Ortulanu (2026) studied this question.

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This note explores how audit effectiveness is influenced by bandwidth, semantic reach, and self-reference depth under capacity constraints.