Is your AI under control?

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

What is the main distinction made between disclosure and assurance?

Disclosure is internal, while assurance is always external

Disclosure focuses on financial reporting, while assurance focuses only on AI

Disclosure is required by law, while assurance is optional

Disclosure creates visibility, while assurance provides evidence that controls operate effectively

Which three categories should remain separate?

Strategy, finance and operations 

Risk, compliance and audit 

Disclosure, policy and assurance

Data, technology and finance

What does assurance provide?

A measure of how reliant an organisation is on AI 

A replacement for board oversight

A description of an organisation's plans for future AI implementation 

Evidence that governance arrangements and controls operate as intended 

Which of the following statements is true? Statement 1, an audit committee should ask who owns the AI model, or statement 2, an audit committee should ask when the AI model was last independently validated

Statement 2

Statement 1

Both statements

Neither statement

What is a key problem with public AI disclosures?

They do not indicate organisational capability

They are too technical for investors to understand easily

All of the other answers

They do not prove that governance and controls work effectively  

Which of the following should determine the level of AI oversight?

The level of investment in the system 

The size of the organisation  

The number of employees using the system 

The consequences of error

Which of the following AI systems would generally require greater scrutiny?

One that influences credit decisions

One that influences capital allocation

All of the other answers

One that influences fraud intervention

Which of the following is an example of evidence that may support assurance?

Independent model validation

Internal audit testing

All of the other answers

Reliable incident reporting

In the comparison of the two institutions, why might the one that provides less disclosure be better governed?

It has chosen not to use AI systems on security grounds

None of the other answers

It has named ownership, documented validation and clear escalation routes

Staff undergo rigorous training before they are allowed to use AI

Why is point-in-time evidence important?

It establishes when a policy, committee, control or material use case was introduced

It shows how much an organisation spends on AI each year 

It measures whether individual roles benefit from using AI

It eliminates the need for independent validation 

1 Unit

Is your AI under control?

What is the main distinction made between disclosure and assurance?

Which three categories should remain separate?

What does assurance provide?

Which of the following statements is true? Statement 1, an audit committee should ask who owns the AI model, or statement 2, an audit committee should ask when the AI model was last independently validated

What is a key problem with public AI disclosures?

Which of the following should determine the level of AI oversight?

Which of the following AI systems would generally require greater scrutiny?

Which of the following is an example of evidence that may support assurance?

In the comparison of the two institutions, why might the one that provides less disclosure be better governed?

Why is point-in-time evidence important?

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