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ISACA Advanced in AI Audit Questions 141–145 (page: 30)

Updated On: 12-Sep-2026

Which of the following is the PRIMARY purpose for conducting a privacy impact assessment (PIA) on a new AI tool that will be used by a healthcare organization to analyze patient records?

  1. To identify and mitigate privacy risk before deployment
  2. To certify the AI tool is fully autonomous
  3. To reduce the need for privacy compliance and legal review
  4. To justify the use of personal data in the AI model

Answer(s): A

Explanation:

A privacy impact assessment identifies potential privacy risks associated with processing personal data and ensures that appropriate mitigation controls are implemented before deploying the AI tool, safeguarding patient confidentiality and supporting regulatory compliance.



Which of the following is the MOST important consideration when assessing the impacts of AI on business processes?

  1. Whether the AI system can be deployed using open-source tools
  2. The number of vendors available to support AI implementation
  3. The cost of cloud infrastructure required to support the AI system
  4. How the AI system affects dependencies across the organization

Answer(s): D

Explanation:

Understanding how the AI system affects organizational dependencies is critical for evaluating operational, process, and risk impacts, ensuring that adoption aligns with business objectives, continuity requirements, and governance frameworks.



Which of the following would be of GREATEST concern to an IS auditor reviewing an organization’s use of an external AI service provider?

  1. Service level agreements (SLAs) do not include penalty provisions for AI model errors.
  2. The organization has not validated the origin of the vendor’s training data.
  3. The provider does not hold an AI-specific security certification.
  4. Identification of third-party AI risk was not completed as part of the onboarding process.

Answer(s): B

Explanation:

Unvalidated training data from an external AI provider poses a high risk of bias, inaccuracy, or noncompliance, directly affecting the reliability, fairness, and integrity of AI outputs, making it the auditor’s primary concern when assessing third-party AI services.



Which of the following is the PRIMARY benefit of implementing proactive risk management in AI governance?

  1. Identifying biases and hallucinations in AI model outputs post-development
  2. Enhancing compliance with AI industry standards
  3. Mitigating potential negative consequences early in the AI system life cycle
  4. Accelerating deployment timelines for new AI systems

Answer(s): C

Explanation:

Proactive risk management allows organizations to identify and address potential ethical, operational, and compliance risks early in the AI lifecycle, reducing the likelihood of negative outcomes and ensuring that AI systems operate safely, reliably, and in alignment with governance objectives.



Which of the following would provide the BEST assurance that AI system algorithms and outputs do not lead to unfair treatment of individuals?

  1. Introducing a global standard for the fair treatment of individual
  2. Developing a policy to address personal well-being
  3. Considering potential prejudice when reviewing bias in data within AI systems
  4. Requiring service providers to disclose algorithms applied to AI systems

Answer(s): C

Explanation:

Reviewing data for potential bias and prejudice ensures that AI algorithms are trained on fair, representative inputs, directly mitigating the risk of outputs leading to unfair or discriminatory treatment of individuals.



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