Ethical risk rises

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.

Which of the following is identified as a recognised benefit of AI in accountancy?

Improved efficiency and speed

Guarantee of accurate conclusions

Elimination of the need for professional judgment

Removal of all ethical risks

In the article, which organisation is quoted as warning that AI tools may 'create, exacerbate or obscure' ethical risk?

International Accounting Standards Board

Ireland's Consultative Committee of Accountancy Bodies

International Ethics Standards Board for Accountants

ACCA

In the article, which organisation says that AI and other technologies increase the need for professional judgment?

International Accounting Standards Board

ACCA

Ireland's Consultative Committee of Accountancy Bodies

International Ethics Standards Board for Accountants

Which of the following statements about the 'reasonable and informed third-party' test is correct? Statement 1, the test involves asking an appropriately informed and impartial person to offer an opinion. Statement 2, the test involves considering the conclusion that an appropriately informed and impartial person would reach

Only statement 2 is correct

Neither statement is correct

Both statements are correct

Only statement 1 is correct

How many fundamental principles are in the ethics code discussed in the article?

Four

Eight

Seven

Five

Which of the following organisations has withdrawn or corrected AI-assisted reports?

All the other answers are correct

KPMG

Deloitte

What is automation bias?

The process of correcting an AI-generated report

None of the other answers is correct

The automatic detection of accounting errors by a system

The tendency to place undue confidence in a machine-generated answer

What is a key risk associated with 'black box' AI behaviour?

AI systems always require human input to operate

It can be difficult to identify errors, bias or inappropriate assumptions in how AI reaches a conclusion

AI outputs are always too complex for clients to understand

All the other answers are correct

What can happen when an AI model is trained on skewed, incomplete or erroneous data?

The model may develop algorithmic bias, creating risks in its use

The model will produce only factual information

The AI will stop producing outputs

The AI will automatically correct the data

Which of the following is a potential risk when entering confidential or commercially sensitive information into an AI system?

The information may be automatically deleted

The information can be accessed only by the person who entered it

The information may be retained, reused or disclosed without authorisation

The information may become more accurate

1 unit