Thegreatest riskwhen using AI to generate audit reports is that it maymisrepresent control effectiveness(B)—for example, by overstating the robustness of controls, understating deficiencies, or summarizing findings inaccurately. This undermines the reliability of the entire audit and can lead to poor management decisions, regulatory issues, and reputational damage. AAIA emphasizes that AI-generated artifacts still requireprofessional judgment and validationto ensure they accurately reflect audit evidence and conclusions.

Inconsistent formatting (A) and lack of integration (C) are usability and efficiency issues, not fundamental assurance risks. Inability to incorporate historical findings (D) reduces context but does not inherently misstate the current control assessment. Therefore,misrepresentation of control effectivenessis the most critical risk from an assurance standpoint.