Certified CITP Exam 1 Study & Practice Kit
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
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
