Acams Advanced-CAMS-Audit Exam Practice Test Instant Access

Question 1

During the ongoing due diligence process the company becomes aware that the customer is holding personal assets for a politically exposed person (PEP). What should the auditor recommend to enhance the control environment for this customer relationship? (Select Three.)

AFile a suspicious activity report as the previous risk rating was not correct.

BDeploy automated monitoring toots to efficiently peruse the customer's KYC information and assure that the customer's KYC risk rating is correct.

CDesignate the account as a PEP-account.

DConduct enhanced due diligence and enhanced ongoing monitoring of the customer relationship.

EReview and document the details of the customer s asset-holding arrangement.

FReview the customer risk profile every two years as with any other customers.
C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks.
D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies.
E: Documenting the details of the asset-holding arrangement provides clarity on the customer's profile and any associated risks.

Answer : C, D, E

Question 2

When evaluating an AML training program tor CFT functions the auditor should verify that:

Ainterns and third parties are not included.

Battendees have completed post-course surveys.

Cethics training has been delivered to senior management.

Dtailored training has been provided to AML and CFT staff.
These answers are aligned with best practices and principles outlined in FATF recommendations and the context of AML/CFT risk management and training standards. If further detailed references are required, feel free to ask!

Answer : D

Question 3

Which statements demonstrate an effective use of risk appetite in an organization? (Select Two.)

ARisk appetite statements should remain stable and consistent, even in changing business conditions.

BDetermining risk appetite should include a discussion about an organization becoming overly risk-averse.

CRisk appetite statements do not need specific indicators to alert management when the level of acceptable risk is exceeded.

DWhen discussing and managing risk, 'risk appetite' and 'risk tolerance' can be used interchangeably.

EAnalyzing risk appetite statements is important to reaching a meaningful articulation of risk appetite.

Answer : B, E

Question 4

When testing the operational effectiveness of an institution's customer risk rating model an auditor finds that the risk rating is not in accordance with the model specification in some cases. After interviewing developers and officers, the auditor learns the specification document is inaccurate and has not been updated in a timely manner. Which are appropriate corrective action plans'? (Select Two.)

AAlert the person in charge of releasing the model that me release must comply with the specifications.

BCheck periodically if released rules are operating as per the specifications.

CSet up a checkpoint before release to make sure that the release is in accordance with the specifications.

DTram KYC personnel to recognize errors in the customer risk rating model.

EReport this matter to the board of directors.
B . Periodic Checks: Regular monitoring ensures that implemented rules align with updated specifications and are functioning as intended, reducing the risk of deviation from compliance standardsints Before Release**: Establishing validation checkpoints ensures that all releases comply with documented specifications, mitigating risks of errors in the risk rating model

Answer : B, C

Question 5

What should an auditor verify when auditing areas with previously identified AMI deficiencies?

AManagement took appropriate and timely action to address any violations and other deficiencies.

BSenior management agreed that the findings were legitimate.

CManagement discussed an action plan to address any violations and other deficiencies.

DThe business attested to remediating the control gaps.

Answer : A

Question 6

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

AAudits need to approve the implementation of the controls and review testing outcomes.

BImproper identification and assessment of risk creates deficiencies resulting in an overall weakened AML compliance program.

CThere is a regulatory requirement for the audit to update the AML risk assessments on a continuous or specified periodic basis.

DStrict CDD rules promote high ethical and professional standards in the financial industry.

Answer : B

Question 7

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

ASelect an audit firm based on recommendations from the AMI compliance officer.

BInvestigate whether the audit firm has conducted prior audits with the Fl.

CEnsure that the scope of the audit and the experience of the auditors match the needs of the Fl.

DChoose an audit firm based on price consideration and geographic location.
Selecting an Audit Firm:
The scope and expertise of the audit firm must align with the institution's risk profile and regulatory requirements to ensure the audit's effectiveness.
Best Practices in Outsourced Audits:
Properly scoping and selecting auditors with relevant AML/CFT experience ensures compliance and minimizes operational risks.
CAMS-Audit Guidance:
Advanced CAMS-Audit emphasizes the importance of tailoring audit scopes and selecting experienced auditors for outsourced engagements.

Answer : C

Acams Advanced-CAMS-Audit Advanced CAMS-Audit Certification Exam Practice Test