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ISACA Advanced in AI Audit Sample Questions (Q227-Q232):

NEW QUESTION # 227
During an audit of a bank ' s AI credit scoring system, an IS auditor discovers that applicants were not informed about automated decision-making. Which of the following should the auditor do FIRST?

Answer: D

Explanation:
Transparency is a fundamental legal and ethical requirement for AI systems, particularly under regulations like GDPR, which mandate that data subjects be informed of automated decision-making. If an auditor finds that applicants were not informed, the immediate " First " step is to " Evaluate transparency controls " to determine why the notification process failed and to assess the scope of the non-compliance. This includes reviewing user agreements, privacy notices, and communication procedures. Once the failure is understood and the risk assessed, the auditor can move on to evaluating the appeal process (Option C) or preparing the final report (Option B).


NEW QUESTION # 228
Which of the following presents the GREATEST risk when an organization deploys a machine learning model in a public cloud environment for real-time predictions?

Answer: A

Explanation:
In areal-time predictionenvironment (e.g., fraud detection, medical triage, automotive risk),latency and inference speeddirectly affect safety, accuracy, and business performance.
If the SLAdoes not include guarantees for latency, the model may fail to deliver predictions in time, leading to:
* Incorrect or delayed decisions
* Transaction failures
* Safety incidents in time-sensitive use cases
* Compliance violations in regulated domains
Although audit trails (B) and governance frameworks (D) are important, theoperational riskrelated to latency is the most immediate and severe.
Limited AI skills among cloud employees (A) is not directly relevant since customers maintain operational responsibility.
References:
AAIA Domain 2: AI Operations - Real-Time Systems, Performance Guarantees


NEW QUESTION # 229
An organization has deployed a generative AI system for customer support that includes frequent updates to the AI model after deployment. Which of the following represents the GREATEST risk?

Answer: C

Explanation:
When AI models are updated frequently in production,continuous monitoringis critical to detect performance degradation, bias drift, hallucinations, and security issues introduced by new versions. A lack of continuous monitoring (option C) means the organization might not promptly detect harmful behaviors or compliance violations, despite frequent changes, exposing it to operational, reputational, and regulatory risk.
Option A (no AI-specific change management) is serious but can be partially mitigated if effective monitoring reveals issues quickly. Option B (overreliance on manual review) is inefficient but still a control. Option D (no dedicated AI governance committee) is a structural weakness, yet the immediate operational risk is greatest where model changes are not constantly observed. AAIA emphasizessupervision of AI solutionsand monitoring of outputs and impacts, which are directly undermined when continuous monitoring is absent.
References:
ISACA,AAIA Exam Content Outline- Domain 2: AI Operations (Supervision of AI Solutions; Change Management Specific to AI).
ISACA materials on continuous monitoring and post-deployment oversight of AI systems.


NEW QUESTION # 230
An IS auditor identified that an AI model was optimized to approve more loans to meet growth targets, which led to a rise in defaults and expected losses. Which action will BEST address this situation?

Answer: D

Explanation:
This scenario describes a " misaligned objective, " where the AI is optimizing for a short-term goal (growth) at the expense of long-term stability (risk). In AI development, particularly in Reinforcement Learning or objective-based models, the " Reward Function " defines what the model considers " success. " To correct the issue, management must " Align the model reward function with long-term risk metrics, " such as default rates or profitability over time. This ensures the AI makes decisions that balance growth with risk appetite.
Simply adding data (Option B) or lowering thresholds (Option C) would only worsen the imbalance or hide the underlying misalignment.


NEW QUESTION # 231
A retail organization uses an AI model to analyze customers' purchase history in order to offer personalized discounts. Which of the following practices represents the MOST ethical use of customer data?

Answer: B


NEW QUESTION # 232
......

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