Audit Scenarios/CapEx vs OpEx Classification

CapEx vs OpEx Classification Audit Trail

Every expenditure classification your AI agent makes: logged against your versioned capitalization policy, cryptographically attested, and independently verifiable.

Available for Q4 2026 pilot Methodology for auditors

The problem

Misclassifying operating expenses as capital expenditures inflates reported assets and understates expenses. It is one of the most common financial statement audit findings and a known fraud pattern. The PCAOB specifically tests capitalization controls during SOX audits.

When an AI agent applies your capitalization policy at scale, auditors need evidence that each classification was tied to the policy in effect at decision time, that material items received human oversight, and that reclassifications are tracked immutably.

Policy versioning

Every classification decision is tied to the policy version in effect at the time. When your capitalization policy changes, a new version is inserted in the immutable policy registry. Old versions are never modified. Auditors can verify which policy applied to any given decision, including threshold amounts and materiality limits.

Material decisions

Classification decisions above your materiality threshold automatically require human approval before any downstream accounting entry executes. That approval is logged immutably. Potential misclassifications, such as classifying material CapEx as OpEx when the amount exceeds the capitalization threshold, are flagged for review regardless of agent state.

Integration

Direct SDKLangChainMCP

pip install sigmodx

from sigmodx import SigmodxClient

client = SigmodxClient(api_key="...", agent_id="...")

input_hash = client.hash_inputs({
    "exp_ref": "EXP-2026-0441",
    "vendor": "VENDOR-SW-001",
    "amount": 250000,
    "category": "software",
    "useful_life_years": 5,
})

result = client.submit_capex_decision(
    decision_type="capex",
    input_hash=input_hash,
    rationale="Software with 5-year useful life exceeds $50k threshold. Meets ASC 350 criteria.",
    policy_version="v1.0",
    expenditure_amount=250000,
    expenditure_category="software",
    useful_life_years=5.0,
    accounting_standard="ASC 350",
    is_material=True,
)

pip install sigmodx sigmodx-integrations

from sigmodx import SigmodxClient
from sigmodx_integrations import SigmodxCallbackHandler, CAPEX_CLASSIFICATION_CONFIG

client = SigmodxClient(api_key="...", agent_id="...")
handler = SigmodxCallbackHandler(
    client=client,
    config=CAPEX_CLASSIFICATION_CONFIG,
)

# Every tool call is automatically logged to Sigmodx
agent_executor.invoke(
    {"input": "Classify expenditure EXP-2026-0441 as CapEx or OpEx"},
    config={"callbacks": [handler]},
)

pip install sigmodx-mcp

SIGMODX_API_KEY=your-key \
SIGMODX_AGENT_ID=your-agent-uuid \
sigmodx-mcp

Claude Desktop / Cursor config:

{
  "mcpServers": {
    "sigmodx": {
      "command": "sigmodx-mcp",
      "env": {
        "SIGMODX_API_KEY": "your-api-key",
        "SIGMODX_AGENT_ID": "your-agent-uuid"
      }
    }
  }
}

Reference standards: ASC 350 (internal-use software), ASC 360 (property, plant, and equipment). Attestation verification strings use SIGMODX-CAPEX-[ORG]-[HASH] at /verify.

Available for Q4 2026 pilot

CapEx classification scenario is live in repo. Pilot access for enterprise teams evaluating SOX capitalization controls.

Request pilot access →