An IS auditor is auditing an AI system that predicts inventory needs. The system recently failed to predict a stock outage for a key product. Which of the following audit tests would BEST validate…

Question

Options

• AUnit testing of the forecasting algorithm
• BLoad testing during peak sales periods
• CSensitivity analysis on input variables
• DHistorical testing with past sales data

• A
  5% (1)
• B
  5% (1)
• C
  10% (2)
• D
  80% (16)

Explanation

Historical testing (also called backtesting) validates a predictive model by running it against past data where actual outcomes are already known, allowing direct comparison of predictions to reality. This directly tests whether the model would have correctly predicted the stock outage. Option A (unit testing) verifies that individual code components function correctly but does not validate the model's predictive accuracy against real-world data. Option B (load testing) measures performance under high transaction volumes, not forecasting accuracy. Option C (sensitivity analysis) tests how output changes in response to input variation, which is useful for understanding the model but does not validate accuracy against known historical outcomes.

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