AI Audit Checklist: Complete Framework For Series B+ Companies
Most AI audits miss 60% of what actually matters. Here’s the complete checklist we use at Islands-stolen from40+ audits.
This is the exact framework we use to audit AI systems for Series B+ companies. Copy it, use it, steal it.
Technical Audit
Model Performance:
☐ Accuracy benchmarks against alternatives
☐ Edge case testing and failure modes
☐ Latency and throughput metrics
☐ Cost per inference calculation
☐ Model degradation monitoring
Infrastructure:
☐ Scalability assessment (can handle 10x load?)
☐ Redundancy and failover systems
☐ Monitoring and alerting setup
☐ Backup and recovery procedures
☐ Version control and rollback capability
Data Audit
Data Quality:
☐ Training data sources documented
☐ Data quality metrics (completeness, accuracy)
☐ Bias detection in training data
☐ Data freshness and update frequency
☐ Validation and testing splits
Data Governance:
☐ Data lineage tracking
☐ Access controls and permissions
☐ Retention policies
☐ Data anonymization procedures
☐ Third-party data agreements
Security Audit
Access & Authentication:
☐ Multi-factor authentication
☐ Role-based access control
☐ API key rotation policy
☐ Audit logs for all access
☐ Penetration testing completed
Encryption:
☐ Data encrypted at rest
☐ Data encrypted in transit
☐ Encryption key management
☐ Secrets management system
☐ Certificate management
Ethics Audit
Fairness & Bias:
☐ Bias testing across demographics
☐ Fairness metrics defined and measured
☐ Mitigation strategies for identified bias
☐ Regular bias audits scheduled
☐ Diverse testing data
Transparency:
☐ Model decisions explainable
☐ Confidence scores provided
☐ Human review process defined
☐ User consent mechanisms
☐ Clear disclosures to users
Business Audit
ROI & Value:
☐ Cost-benefit analysis completed
☐ ROI calculation with real numbers
☐ Success metrics defined and tracked
☐ Alternative solutions evaluated
☐ Total cost of ownership calculated
Alignment:
☐ Aligned with business objectives
☐ Stakeholder buy-in secured
☐ Risk assessment completed
☐ Mitigation plans for identified risks
☐ Operational sustainability confirmed
Compliance Audit
Industry-Specific:
☐ GDPR compliance (if EU data)
☐ CCPA compliance (if CA data)
☐ HIPAA compliance(if healthcare)
☐ SOC 2 compliance (if enterprise)
☐ Industry-specific regulations
Documentation:
☐ Model card created
☐ Data sheets documented
☐ Compliance reports current
☐ Incident response plan documented
☐ Regular audit schedule established
Industry-Specific Additions
Healthcare:
☐ Patient safety impact assessment
☐ Clinical validation completed
☐ FDA compliance (if applicable)
Finance:
☐ Model risk management framework
☐ Stress testing completed
☐ Regulatory reporting capability
HR/Hiring:
☐ EEOC compliance verification
☐ Adverse impact analysis
☐ Human review in hiring decisions
Post-Audit Actions
☐ Remediation plan created
☐ Priorities assigned (high/medium/low)
☐ Owners assigned to each item
☐ Timeline established
☐ Budget allocated
☐ Follow-up audit scheduled
The 90% Coverage Rule
This checklist covers 90% of what enterprise buyers and regulators actually care about.
The remaining 10% is industry-specific and should be determined with legal/compliance counsel.
How to Use This Checklist
Week 1: Complete technical and data audits
Week 2: Complete security and ethics audits
Week 3: Complete business and compliance audits
Week 4: Create remediation plan and documentation
Common Findings
Based on our 40+ audits:
Insufficient documentation (90% of companies)
No bias testing (75% of companies)
Inadequate monitoring (70% of companies)
Missing governance policies (65% of companies)
No incident response plan (60% of companies)
The good news? All fixable.
What Good Looks Like
A well-audited AI system has:
✅ Comprehensive documentation
✅ Regular bias testing
✅ Real-time monitoring
✅ Clear governance policies
✅ Tested incident response plan
✅ Documented compliance status
The Enterprise Sales Advantage
Without an AI audit:
Procurement raises red flags
Legal teams block deals
Security reviews take 6+ months
Lost deals to competitors
With an AI audit:
Procurement moves faster
Legal has fewer concerns
Security reviews take 2-4 weeks
Competitive advantage
Download the Interactive Version
This is the text version. We also have:
Interactive spreadsheet version
Automated compliance tracker
Risk scoring calculator
Remediation template
Need help with your AI audit?
Islands offers comprehensive audits using this framework.
Visit https://www.qaflow.com/audit