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ACAMS Advanced-CAMS-Audit Practice Test - Questions Answers, Page 6

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Question 51

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Which task should an auditor complete first when preparing to audit the client risk scoring methodology?

Query the completeness of the customer data to be provided.

Query the completeness of the customer data to be provided.

Discuss the client risk scoring process with the head of AML.

Discuss the client risk scoring process with the head of AML.

Review the financial institution's AML risk assessment to understand the institution's client base.

Review the financial institution's AML risk assessment to understand the institution's client base.

Review a list of high-risk customers provided by compliance.

Review a list of high-risk customers provided by compliance.

Suggested answer: C
Explanation:

Understanding Client Risk Scoring Methodology: Reviewing the AML risk assessment offers a comprehensive view of the institution's client base, risk appetite, and segmentation strategies. Preparation Steps: Assessing the AML risk assessment ensures that auditors understand the institution's framework for categorizing and managing client risks. Importance in CAMS-Audit Framework: CAMS-Audit highlights the necessity of linking client risk scoring to the broader institutional AML risk assessment.

asked 06/01/2025
Marcos Davila
36 questions

Question 52

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Findings from a financial institution's (Fl's) regulatory examination suggest that several unidentified risks pose a serious threat. The Fl identifies the risks and implements a set of controls to mitigate those risks. Which type of risk considers the controls' effectiveness?

Aggregate

Aggregate

Consolidated

Consolidated

Inherent

Inherent

Residual

Residual

Suggested answer: D
Explanation:

Definition of Residual Risk: Residual risk is the risk that remains after controls are implemented to mitigate inherent risks. It reflects the effectiveness of controls and highlights areas requiring further attention. Relevance in Risk Management: Evaluating residual risk helps determine whether existing controls adequately address the identified risks. CAMS-Audit Best Practices: Auditors must assess residual risk as part of the broader risk management framework to ensure regulatory compliance and operational resilience.

asked 06/01/2025
Vilfride Lutumba
45 questions

Question 53

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Which circumstance would impair an auditor's independence and objectivity?

Attending internal meetings where key risk indicators are discussed

Attending internal meetings where key risk indicators are discussed

Donating funds to a local chanty which relates to the organization being audited

Donating funds to a local chanty which relates to the organization being audited

Working with staff to design and implement key controls

Working with staff to design and implement key controls

Presenting at a local audit industry event where best practices are discussed

Presenting at a local audit industry event where best practices are discussed

Suggested answer: C
Explanation:

Impairment of Independence and Objectivity: Auditors must remain independent and objective. Direct involvement in designing and implementing controls creates a conflict of interest. Guidelines from CAMS-Audit: CAMS-Audit emphasizes that auditors should limit their role to evaluating controls and avoid involvement in operational tasks. Standards of Professional Conduct: Independence is a cornerstone of effective auditing, ensuring unbiased findings and recommendations.

asked 06/01/2025
AARON MCCOMBS
53 questions

Question 54

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An audit manager identifies that a financial institution (Fl) has not produced a business-level risk assessment in accordance with policy. The senior manager of the Fl assures that assessing risk at the individual client level and aggregating the data is an acceptable approach. How should the audit manager proceed?

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Question 55

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An auditor plans to examine a sample targeting newly onboarded, high net-worth clients to assess adherence to their onboarding policies. What sampling methods should the auditor use? (Select Three.)

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Question 56

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What factors are considered tor conducting an external audit and assurance review? (Select Three.)

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Question 57

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The scoping and planning process of an AML audit of a bank is best guided by review of which document?

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Question 58

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Which can be excluded from an audit report?

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Question 59

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Which are methods to test internal controls related to the CDD and KYC process? (Select Two.)

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Question 60

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Which should be incorporated into an AML compliance policy? (Select Three.)

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Total 90 questions
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