The Hallucination Problem: Catching AI's Confident Mistakes
AI tools can produce a number, a citation, or a journal entry that looks completely correct and is entirely made up. They deliver it with the same fluency and the same authoritative tone they use when they are right. In accounting, where a wrong figure carries real consequences, that risk deserves a clear-eyed look.
This session gets precise about the difference between hallucination and fabrication, walks through a real sanctions case that most people misread, and covers the four patterns these errors take in journal entries, workpapers and client deliverables, along with the professional standards that already govern your reliance on any technology output. A live side-by-side runs the same source file through a general-purpose model and a source-grounded, deterministic system, with the room hunting for a planted error in real time. You will leave with a five-step verification protocol you can put into a workflow this quarter.
Presented by: Reagan Matsumoto, Accounting Architect, Truewind
Learning objectives
After completing this program, participants will be able to:
Distinguish between AI hallucination and fabrication, and identify the conditions that make each more likely.
Recognize why AI tools produce confident wrong answers as a structural property of the technology rather than an occasional defect.
Identify the four patterns in which AI-generated errors surface in journal entries, workpapers and client deliverables.
Recognize the existing professional standards that govern reliance on technology output, and select the verification steps to apply before AI output reaches the books or a client deliverable.
Distinguish probabilistic from deterministic system design when selecting a tool for work that must tie to source.
Field of study: Information Technology
Program level: Basic
Prerequisites: None
Advance preparation: None
Delivery method: Group Internet Based
CPE credits: 1.0
Who should attend: Accountants, controllers, finance team members, and CPAs exploring the use of AI tools in their workflows
Instructional method: Virtual
Program date / time: Aug 13, 2026 | 10:00am
Registration: click the RSVP
Location: Virtual (Zoom)
Refund & Cancellation: This course is free of charge and therefore no refunds are given.
Complaints: For complaints or concerns, please contact Nicole Shen at nicole@trytruewind.com or 341-999-3837.
Truewind is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org