Advanced CAMS - Audit

Advanced CAMS - Audit practice questions, page 4 of 4, with answer review and explanations.

Question 16

During transaction testing, an auditor observes that the ultimate beneficial owners of a corporation were not identified as part of the new account opening file.What should the auditor include as support in the workpapers?

  1. Suspicious activity report
  2. AML training records
  3. AML policy and procedures document
  4. Latest AML audit report

Question 17

Which does a financial institution (FI) need to do when outsourcing an independent audit?

  1. Ensure that the scope of the audit and the experience of the auditors match the needs of the FI.
  2. Select an audit firm based on recommendations from the AML compliance officer.
  3. Investigate whether the audit firm has conducted prior audits with the FI.
  4. Choose an audit firm based on price consideration and geographic location.

Question 18

Why is it crucial for the audit plan to consider the effectiveness of the AML risk assessment controls and risk mitigants?

  1. There is a regulatory requirement for the audit to update the AML risk assessments on a continuous or specified periodic basis.
  2. Audits need to approve the implementation of the controls and review testing outcomes.
  3. Strict CDD rules promote high ethical and professional standards in the financial industry.
  4. Improper identification and assessment of risk creates deficiencies resulting in an overall weakened AML compliance program.