Audit Planning and Design AAIA Practice Questions (Page 9)

Questions 41–42

1. 41application · medium

   A financial institution is planning an audit of a credit-scoring AI system that uses a gradient-boosting model on customer transaction data. The audit team has limited resources and must prioritize the highest-risk areas. Which approach should the audit lead take to determine the audit focus?

   • ADefer the audit until the model has been in production for at least six months to gather sufficient historical data for testing.
   • BFocus the audit primarily on the model's algorithm and technical performance, as this is the most complex part of the system.
   • CAudit all components of the AI system equally to ensure complete coverage and avoid missing any potential issue.
   • DPerform a preliminary risk assessment that considers the model's impact on lending decisions, data sensitivity, and regulatory exposure, then allocate more audit effort to high-risk components.
   Reveal Solution Discussion Select an answer first
2. 42foundation · easy

   Why is it important to allocate resources effectively in an AI audit?

   • ATo minimize the number of audit findings
   • BTo avoid the need for audit documentation
   • CTo ensure that all audit team members have the same tasks
   • DTo ensure that audit activities are completed within budget and on time
   Reveal Solution Discussion Select an answer first