Algorithms Regulatory Frameworks & Compliance 5

Question 1

Which type of audit examines whether an algorithm produces equitable outcomes across demographic groups?

Accepted Answer

Algorithmic fairness audit

Answer

Security audit

Answer

Financial compliance audit

Answer

Code quality audit

Question 2

Under the Americans with Disabilities Act (ADA), what obligation do employers have when using algorithmic screening tools?

Accepted Answer

To ensure the algorithm does not screen out qualified individuals with disabilities

Answer

To disclose the algorithm's source code to applicants

Answer

To provide a manual alternative only if requested

Answer

No obligation, as ADA does not cover software

Question 3

What is the significance of the 'four-fifths rule' (80% rule) in algorithmic hiring compliance?

Accepted Answer

A selection rate for a protected group below 80% of the highest group's rate indicates adverse impact

Answer

80% of algorithm decisions must be manually reviewed

Answer

Algorithms must be retrained every 80 days

Answer

80% accuracy is the minimum threshold for compliance

Question 4

Which regulatory concept requires that an algorithm's training data be relevant and representative of the population it will affect?

Accepted Answer

Representative sampling

Answer

Data sovereignty

Answer

Data stewardship

Answer

Data provenance

Question 5

A government agency uses an algorithm to allocate social services. Which constitutional principle requires the agency to provide due process before denying benefits?

Accepted Answer

Due Process Clause

Answer

Equal Protection Clause

Answer

Commerce Clause

Answer

Supremacy Clause

Question 6

What is 'model drift' and why must it be monitored for regulatory compliance?

Accepted Answer

When a model's performance degrades over time as real-world patterns change from training data

Answer

When a model's code is accidentally deleted

Answer

When a model is moved to a different server

Answer

When a model's API version becomes outdated

Question 7

Which emerging U.S. regulatory requirement asks companies to disclose when consumers are interacting with an AI system rather than a human?

Accepted Answer

The AI Transparency Act (proposed)

Answer

CCPA Section 1798.91

Answer

FTC Bot Disclosure Rule

Answer

NIST SP 800-218A