An IS auditor is evaluating an organization's data governance controls for its AI system. Which of the following represents the GREATEST risk in this context?
Answer(s): D
Weak controls over data accuracy and privacy compliance pose the greatest risk because AI systems rely heavily on high-quality, compliant data. Failures in these areas directly threaten model integrity, regulatory adherence, and overall governance of the AI system.
Which of the following is the GREATEST risk of using AI to generate audit reports?
Answer(s): B
The greatest risk is that AI may misrepresent control effectiveness, leading to inaccurate or misleading audit conclusions. This directly affects audit reliability, governance, and stakeholder trust.
Which of the following should be an IS auditor's GREATEST concern if class imbalance is identified in training data for an AI model?
Answer(s): C
Class imbalance in training data increases the likelihood that the model will learn biased patterns, favoring the majority class and producing unfair or inaccurate outcomes, making model bias the greatest concern.
A healthcare AI tool used by a hospital recommends treatments based on patient data. The tool sometimes suggests treatments that have high success rates but significant risk. The hospital's risk management approach prioritizes patient safety over innovative solutions. Which of the following is the hospital's BEST course of action?
Answer(s): A
Adjusting the AI's parameters to reflect the hospital's risk tolerance ensures the model's recommendations align with the organization's patient-safety-first governance stance. This directly embeds the hospital's risk appetite into model behavior without discarding the tool's benefits.
An AI audit reveals that a loan approval model has a significantly higher rejection rate for applicants from a specific demographic group. Which of the following should be management's PRIMARY response?
A comprehensive bias analysis is required to determine whether the model is producing discriminatory outcomes, understand the root causes, and guide corrective actions to ensure fair and compliant model behavior.
Which of the following provides the BEST evidence that an organization's AI integration is aligned with its overall technology strategy?
Defined KPIs for AI systems provide direct, measurable evidence that AI initiatives support and align with the organization's broader technology strategy by linking AI performance to strategic objectives.
An organization has deployed an AI-powered customer service chatbot trained using customer chat logs. When reviewing AI risk assessment documentation, which of the following should be the IS auditor's GREATEST concern?
Insufficient access controls create the highest risk because they can lead to unauthorized exposure of customer chat logs, which contain sensitive personal data. This represents a major privacy, compliance, and security threat that outweighs performance or reputational concerns.
Which of the following is the GREATEST risk associated with deploying an AI system with ineffective anomaly detection?
Ineffective anomaly detection can allow data poisoning to go unnoticed, corrupting training or operational data and directly degrading the quality and integrity of AI decisions. This poses the greatest governance and risk impact because it compromises the fundamental reliability of the AI system.
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