Audit Testing and Sampling Methodologies AAIA Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Why might an auditor need to adapt traditional sampling methods when auditing an AI system?

   • ABecause AI systems may have complex algorithms that introduce unique risks like bias and data quality issues
   • BBecause AI systems are always too large to sample
   • CBecause AI systems do not have a defined population
   • DBecause statistical sampling cannot be used on AI systems
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   An AI auditor is planning to test the accuracy of a loan-approval model's credit-risk scoring across a population of 500,000 loan applications. The auditor is concerned about the model's performance on minority demographic groups, which represent only 5% of the population. The auditor wants to ensure that conclusions about the model's accuracy for these groups are statistically reliable without examining all 500,000 records. Which sampling approach best addresses this concern?

   • AUse haphazard selection, picking every 50th record from the database until 100 records are selected.
   • BUse stratified sampling, dividing the population into demographic subgroups and drawing a random sample from each subgroup, including a larger sample from the minority group.
   • CUse block selection, selecting the first 100 records from the most recent month of loan applications.
   • DUse simple random sampling of 100 records from the entire population, relying on the random selection to include a representative number of minority applicants.
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   What is the purpose of stratification in audit sampling?

   • ATo eliminate the need for professional judgment in sampling
   • BTo increase the sample size to reduce sampling risk
   • CTo divide a population into subpopulations with similar characteristics to improve sampling efficiency
   • DTo ensure that every item in the population has an equal chance of selection
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   Which of the following is a common use of audit software in sampling?

   • ATo eliminate the need for testing sample items
   • BTo automatically generate random samples from a population
   • CTo replace the auditor's judgment in determining sample size
   • DTo guarantee the accuracy of sample results
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   Which of the following best distinguishes audit sampling from a 100% examination?

   • ASampling tests a subset of items, while 100% examination tests all items in the population
   • BSampling is used only when the population is small, while 100% examination is used for large populations
   • CSampling provides no assurance about the population, while 100% examination provides complete assurance
   • DSampling is only used for tests of controls, while 100% examination is used for substantive testing
   Reveal Solution Discussion Select an answer first