Audit Readiness CRAGE Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   An energy company has an AI system that predicts equipment failures. The company's audit readiness program includes quarterly reviews of the AI governance framework. A new internal policy is introduced that requires all AI models to undergo an annual bias assessment. The next quarterly review is in two months. What should the company do to maintain continuous readiness?

   • AWait until the next quarterly review to update the program, as that is the established process.
   • BConduct the bias assessment immediately, but do not update the audit readiness program until the next review.
   • CUpdate the audit readiness program immediately to include the new bias assessment requirement, and schedule the assessment for the next cycle.
   • DAsk the internal audit team to include the bias assessment in the next audit, even though the program is not updated.
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2. 2foundation · easy

   When defining the scope of an AI audit, which element is most important to specify?

   • AThe budget allocated for the audit.
   • BThe specific AI systems, processes, and organizational units that will be included in the audit.
   • CThe marketing strategy for the AI product.
   • DThe names of the auditors who will conduct the audit.
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4. 3expert · hard

   A pharmaceutical company is preparing for an audit of its AI system that assists in drug discovery. The audit will require evidence that the system's outputs are reproducible and that the data used is properly governed. The company's data science team has been storing experiment results in Jupyter notebooks, which are not version-controlled and contain a mix of code, outputs, and narrative. The compliance team needs to establish a defensible evidence collection process. What is the most critical action?

   • AAsk the data science team to manually document each experiment in a Word document and store it in a shared drive.
   • BRetain all Jupyter notebooks as-is, as they contain the full experiment history.
   • CImplement a version-controlled experiment tracking system that records code, data versions, parameters, and outputs for each run.
   • DFocus on collecting the final results only, as the audit is concerned with outcomes, not the process.
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5. 4foundation · easy

   Why are audit trails important for AI systems?

   • AThey replace the need for any human oversight.
   • BThey provide a chronological record of system activities that can be used to demonstrate compliance and traceability.
   • CThey automatically fix any errors in the AI model.
   • DThey increase the speed of AI model inference.
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6. 5application · medium

   A government agency's AI ethics committee has completed a gap analysis against the organization's AI governance policy. The analysis found that the agency lacks a formal process for documenting model risk assessments, and that the existing incident response plan does not cover AI-specific failures. The committee must now plan remediation. What is the most appropriate next step?

   • AAsk the internal audit team to re-scope the next audit to exclude the identified gaps.
   • BPrioritize the gaps based on risk and regulatory impact, then assign owners and deadlines for developing the missing processes.
   • CImmediately purchase a commercial AI governance platform to address all gaps at once.
   • DDocument the gaps in the annual report and wait for the next audit cycle to address them.
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