CIA-I Certification Exam Questions with AI Explanations

QUESTION: 321

Increasing the desired precision from $1, 000 to $2, 000 would have what effect on the required size of a sample?

It would increase the sample size.
It would decrease the sample size.
It would have no effect on the sample size.
The effect on the sample size is not determinable.

Answer(s): B

A recent survey indicated that residents of a small town take the train to a nearby city eight times per month, on average. The same survey showed that the number of train trips that a resident takes per month (y) is determined by the number of days per month that the resident works in the nearby city (x), according to the equation y = 2 + 2x. A person who never works in the nearby city is expected to take the train

Zero times per month.
Two times per month.
Four times per month.
Eight times per month.

Answer(s): B

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QUESTION: 323

The internal auditor of a bank has developed a multiple regression model which has been used for a number of years to estimate the amount of interest income from commercial loans. During the current year, the auditor applies the model and discovers that the R2 value has decreased dramatically, but that the model otherwise seems to be working correctly. Which of the following conclusions is justified by the change?

Changing to a cross sectional regression analysis should cause the R2 to increase.
Regression analysis is no longer an appropriate technique to estimate interest income.
Some new factors, not included in the model, are causing interest income to change.
A linear regression analysis would increase the model's reliability.

Answer(s): C

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QUESTION: 324

Five brand managers in a consumer products company met to determine how well certain promotions had performed. The data that they needed to analyze consisted of approximately 50 gigabytes of daily point of sale (POS) data for each month. The brand managers tried to download the POS data from the mainframe and import it into microcomputer spreadsheets for analysis. Their efforts were unsuccessful, most likely because of

The complexity of the mainframe data structure and the large volume of data.
The difficulty of establishing access privileges for each subset of the mainframe data.
Inconsistencies in the mainframe data due to lack of integrity constraints on the data files.
Error prone transmission links for downloading the data from the mainframe data files.

Answer(s): A

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QUESTION: 325

An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?

Interviews provide the opportunity to insert questions to probe promising areas.
Interviews are the most efficient way to upgrade the information to the level of objective evidence.
Interviewing is the least costly audit technique when a large amount of information is involved.
Interviewing is the only audit procedure which does not require confirmation of the information that is obtained.

Answer(s): A

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QUESTION: 325