An AI audit reveals that a loan approval model has a significantly higher rejection rate for a specific demographic group. What should be management's PRIMARY response?

• A.Accept the audit findings as within risk tolerance.
• B.Determine if audit sampling is sufficient.
• C.Conduct comprehensive bias analysis.
• D.Synthesize more data of the affected demographic group.

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Which of the following is the GREATEST risk of using AI to generate audit reports?

• A.The AI system uses inconsistent formatting across audit reports.
• B.The AI system misrepresents control effectiveness.
• C.The AI system cannot integrate with management dashboard tools.
• D.The AI system is not able to include historical audit findings.

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Which technique is MOST useful for identifying whether a model's outputs disproportionately disadvantage a protected group?

• A.Confusion matrix analysis
• B.Disparate impact / fairness metric analysis across subgroups
• C.Feature importance ranking
• D.Cross-validation

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An organization is using information gathered from customer accounts to train its AI chatbot.
Which of the following is the GREATEST risk associated with this practice?

• A.Disclosure of personal information
• B.AI bias
• C.Transparency
• D.AI model hallucinations

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A healthcare AI tool recommends treatments with high success rates but significant risk. The hospital prioritizes patient safety over innovation. What is the BEST course of action?

• A.Adjust the AI's parameters to align with the hospital's risk tolerance.
• B.Discontinue using the AI tool and rely solely on doctor expertise.
• C.Obtain patients' consent for the use of their data by the AI tool.
• D.Use the AI tool only for low-risk situations.

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