A tax authority uses agentic AI to autonomously review corporate tax filings and issue tax notifications.Which of the following is the MOST important risk for an IS auditor to assess?
Answer(s): B
Agentic AI can take consequential actions autonomously, so the greatest risk is that it may issue incorrect or unjustified tax adjustments without sufficient transparency or human review. In a regulatory context, this could create legal, fairness, accountability, and due-process concerns.
An IS auditor finds that an AI model used for loan approvals is making decisions without offering understandable explanations to applicants.Which of the following is the auditor’s BEST recommendation?
Answer(s): D
Explainability tools can provide understandable, decision-specific reasons for loan approval outcomes. This supports transparency, accountability, regulatory compliance, and the ability of applicants and reviewers to understand how the AI reached its decision.
A retail organization plans to deploy a generative AI system to support consumers. The risk management team has been asked to prioritize societal risk in its evaluation of the system.Which of the following is the MOST important source of risk for the team to evaluate?
Misleading information is a major societal risk for generative AI because inaccurate or fabricated outputs can influence consumer decisions, spread misinformation, and undermine trust at scale. For a consumer-facing system, evaluating this risk is therefore especially important.
When reviewing an organization’s implementation of AI for processing sensitive data, which of the following is MOST important to address?
Answer(s): A
When AI processes sensitive data, existing cybersecurity vulnerabilities present the most immediate risk because they can enable unauthorized access, disclosure, alteration, or compromise of that data. Protecting sensitive information therefore requires identifying and remediating security weaknesses in the surrounding AI environment.
Which of the following is the GREATEST concern associated with the use of AI in the auditing process?
Algorithmic bias can cause AI-assisted audit procedures to produce unfair, distorted, or systematically inaccurate conclusions. This creates significant ethical and governance risk because biased outputs can affect audit judgments, findings, and management decisions.
Post your Comments and Discuss ISACA AAIA exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the AAIA content, but please register or login to continue.