CITP Exam Questions with Correct Answers Latest 2024/2025 Graded A+.

CITP Exam Questions with Correct Answers Latest 2024/2025 Graded A+. Application Controls - Answer Internal controls around applications that operate at a transaction level and ensure authorization, protect against unauthorized access, errors, unauthorized reporting, and extra care around high-rise transactions Artificial Intelligence (AI) - Answer Computer science that involves automated reasoning and problem solving, emulating human intelligence Assertion Level Risks - Answer Risks limited to one or more specific assertions in an account or in several accounts; addressed by nature, timing, and extent of further audit procedures; Includes inherent and control risk Asset Misappropriation - Answer Use of one's occupation for personal gain through the deliberate misuse or theft of the employing organization's resources or assets Attribute - Answer Characteristic of something in a data file (ie. part number of an inventory item) Automated Control - Answer Involves leveraging technology to build and enforce internal controls with the least manual intervention possible Balanced Scorecard - Answer Holistic performance measuring and managing methodology combining financial, customer, internal processes, and learning/growth objectives into a single report Business Activity Monitoring (BAM) - Answer Software that assists management in monitoring business activities, especially automated processes; Aggregating, analyzing, and presenting business process performance Business Intelligence (BI) - Answer Structure and process that combines information architecture, databases, analytical tools, reporting tools, and other applications to gather and communicate business information for strategic and tactical purposes Business Performance Management (BPM) - Answer Measures and analyzes enterprise performance, operational and financial, to achieve strategic advantages Business Process Management (BPrM) - Answer Holistic management approach to managing business processes at the enterprise level to promote efficiency and effectiveness, while stressing improvements, innovation, and integration with technology Commercial Off-the-shelf Software (COTS) - Answer Software that is published and mage commercially available to the general public Conceptual Schema - Answer View of information requirements before it is converted into an actual database; composite view of all user views / schemas Control Risk - Answer Risk that a material misstatement will not be detected or prevented by the entity's internal control on a timely basis; considered individually and in the aggregate with other misstatements Corruption Schemes - Answer Set of fraud schemes that involves someone inside the victim organization working with someone outside the entity to defraud the entity Critical Success Factors (CSF) - Answer Structure and process that measures and analyzes enterprise performance, operational and financial, to achieve strategic advantages Dashboard - Answer Visual presentation of information that allows for quick assimilation of the facts, and understanding of significance or importance of the information Data - Answer Raw facts; apart from outside manipulation, data is virtually meaningless Data Mart - Answer Subset of data warehouse database that is useful to one or more users for reporting or analyzing Data Mining - Answer Data processing using large data sets and sophisticated data search capabilities and statistical tools to discover patterns or correlations, or to make predictions based on historical data. Data Warehouse (DW) - Answer Data repository of historical and current data Database - Answer A closely related collection data files where the data is shared among users Database Management System (DBMS) - Answer System of software for creating, updating, and querying a database Decision Support System (DSS) - Answer A system of applications, data, and usually dashboards that supports managers, often modeling data or problems to facilitate effective decisions Detection Risk (DR) - Answer the risk that the auditor will not detect a material misstatement in the financial statements of the entity being audited e-Discovery - Answer Discovery in civil litigation which deals with the exchange of information in electronic format, often referred to as electronically stored information (ESI) Electronic Commerce - Answer Electronic business applications or processes that facilitate commercial transactions End-user Computing (EUC) - Answer A function developed using common desktop tools, like spreadsheets, that are used in financial processes for purposes of determining amounts used for accounting and financial purposes Enterprise Resource Planning (ERP) - Answer Integrates internal and external systems across the entire organization, integrating financial, accounting, manufacturing, sales, service, customer relationship management, and supply chain management systems Entity-Relationship Model (ER) - Answer A data model that focuses on the relationship between two data files and two the records of one file relate to the other; Documenting the relationship is called an ER diagram Extract, Transform, Load (ETL) - Answer A database process especially applied to data warehouses; Extracts data from outside data sources, transforms to fit organizational needs, and loads data into the target database or warehouse Field - Answer See attribute; also referred to as a column in a relational database Financial Statement Level Risks - Answer Risks that may affect many different accounts and several assertions; typically require an overall response such as more supervision or unpredictability Fraud - Answer Intentionally harming the entity for personal, financial gain Fraud Risk Factors - Answer Identifiers, indicators, situations, behaviors, and other evidence that a fraud has occurred, is occurring, or will occur; See AU 316 for specific list Fraud Triangle - Answer Pressure/incentive, opportunity, rationalization/attitude Fraud Tree - Answer A study by ACFE determined the taxonomy of fraud resembles a tree with asset misappropriations, fraudulent financial reporting, and corruption as its main branches Information Lifecycle Management (ILM) - Answer The structure and processes associated with managing information from creation or capture through disposition or destruction; Identify, capture, organize/manage, access/share/utilize, archive, and destroy Inherent Risk (IR) - Answer The susceptibility that a relevant assertion could be misstated assuming that there are no other related controls Internal Control - Answer A process affected by the board of directors, management, and other personnel designed to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with laws and regulations Five Components of COSO - Answer Control environment, Risk assessment, Control activities, Information and communication, and Monitoring IT Control Risk - Answer A type of control risk where the source of the risk is related to the use of IT in the processing of transactions security of underlying data IT General Controls (ITGC) - Answer Objectives are to ensure proper operation of the applications and availability of systems, protection from unauthorized changes, access, and disclosure, assurance of maintenance and usability, and ensure the ability to recover from failures Key Field - Answer A field that uniquely identifies records within the file Key Performance Indicator (KPI) - Answer Type of performance measurement where the object and target metric has been developed strategically to define and measure progress toward organizational goals Logical Access Controls - Answer Policies, procedures, and automated controls that exist for the purpose of restricting access to information assets to only authorized users Material Weakness - Answer A significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected Materiality - Answer The magnitude of an omission or misstatement of accounting information that, the light of surrounding circumstances, makes it probable that the judgement of a reasonable person relying on the information would have been changed by the omission or misstatement; Dependent on the users relying on the information Neural Network - Answer Computer technology that mimics the human brain by processing information, solving problems, and making predictions Normalized Data (statistically) - Answer The statistical process of converting all of the values for an attribute to a number between 0 and 1, or to give a percentage or ratio of a particular value to the range of possible values for the attribute Online Analytical Processing (OLAP) - Answer An approach to analyzing and querying multidimensional data; and is a part of the business intelligence discipline Online Transaction Processing (OLTP) - Answer A system that initiates, records, and processes transactions such as accounting and finance; records daily transactions for the organization to capture and report Physical Schema - Answer The schema or view of information requirements that is an actual database Real-time Data Warehouse (RDW) - Answer Captures and provides data in more or less real time Relational Database - Answer A database whose records are organized into tables with columns and rows making if easy for users to understand and work with this data and framework Relevant Assertions - Answer Defines relevant assertions as those assertions that have a meaningful bearing on whether the account is stated fairly