Compliance Auditing CRAGE Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   Which characteristic is most important for an effective audit report?

   • AIt highlights only positive findings to maintain good relations
   • BIt includes every detail of the audit process
   • CIt uses technical jargon to demonstrate expertise
   • DIt is concise and clearly presents findings and recommendations
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   An auditor is testing whether an AI recruitment tool complies with the EU AI Act's requirement for human oversight. The tool shortlists candidates, and the organization claims a human reviews all shortlists. Which audit procedure provides the strongest evidence of compliance?

   • AReview the system logs to confirm that every shortlist generated by the AI was opened and acknowledged by a human reviewer before any hiring action.
   • BInterview the hiring managers and ask them to describe how they review the AI-generated shortlists.
   • CTest the AI tool with historical data to see if it produces shortlists that a human would likely approve.
   • DInspect the AI tool's user interface to confirm that a human review button exists.
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A company has deployed an AI system for dynamic pricing. The company wants to ensure ongoing compliance with evolving consumer protection regulations. Which approach best supports continuous compliance monitoring?

   • AEstablish a cross-functional compliance committee that reviews regulatory changes and assesses the AI system's pricing decisions on a regular basis.
   • BRely on the AI system's automated self-checks to ensure compliance without human review.
   • CWait for the regulator to publish new guidance before making any changes.
   • DConduct a full compliance audit only when a customer complaint is received.
   Reveal Solution Discussion Select an answer first
5. 29application · medium

   An organization has implemented a corrective action plan to address an audit finding that its AI-based customer service system does not log user consent for data processing. The audit team must verify the effectiveness of the remediation. Which verification method is most appropriate?

   • ACheck that the corrective action plan has been marked as 'completed' in the tracking system.
   • BReview the updated logging mechanism and generate a test interaction to confirm that consent is captured and stored correctly.
   • CConfirm that the corrective action plan has been approved by the project manager.
   • DInterview the development team to ask if they believe the logging is working correctly.
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   What is the main purpose of an audit report in a compliance audit?

   • ATo serve as a marketing document for the organization's AI capabilities
   • BTo provide a detailed technical specification of the AI system
   • CTo replace the need for further audits
   • DTo communicate audit findings, conclusions, and recommendations to stakeholders
   Reveal Solution Discussion Select an answer first