Acams Advanced-CAMS-Audit Exam Questions Instant Access

Question 1

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

Question 2

The company has automated the completion of the customer risk assessment (CRA) into its main customer relationship management (CRM) system The CRM has needs recording the overall risk level assessed (Standard. Enhanced), the ID number of the staff member who completed the assessment, and me date of the last assessment Which additional fields should the auditor recommend to document the CRA process? (Select Three.)

AAge (Years)

BRisk factors (Y/N. if Y please specify)

CType of customer (Trust. Company Individual)

DAnnual premium (S)

EResidence (Country)

FPhoto ID taken (Passport Driver's License. Other)
Enhancements to the CRA Process:
Risk Factors: Identify and document specific risk indicators for transparency and consistent assessment. This ensures alignment with the risk-based approach advocated by FATF.
Type of Customer: Differentiating customer types (trust, company, individual) is critical for tailoring due diligence measures to the unique risks associated with each type.
Residence (Country): Tracking customer jurisdiction ensures risk assessments reflect geopolitical and regulatory changes, fulfilling FATF compliance expectations.
Role of Additional Fields in Compliance:
These fields enhance traceability, accountability, and risk profiling, ensuring the CRA process is comprehensive and meets regulatory standards.
Advanced CAMS-Audit Guidance:
Documentation must be detailed and periodically reviewed to address evolving AML risks effectively, as recommended by CAMS-Audit guidelines.

Answer : B, C, E

Question 3

Which are key responsibilities of internal auditors? (Select Two.)

AImplementing controls and other safeguards

BDetermining appropriate risk appetite of the entity

CEvaluating the management of risk

DActing as a catalyst for improvement

EMitigating the risks facing the organization
Evaluating the Management of Risk:
Internal auditors assess the effectiveness of risk management strategies to ensure alignment with organizational goals and regulatory expectations.
Acting as a Catalyst for Improvement:
Auditors provide insights and recommendations to enhance controls and improve overall risk management practices.
CAMS-Audit Emphasis:
CAMS-Audit outlines the dual role of internal auditors in evaluating and facilitating risk management improvements.

Answer : C, D

Question 4

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

AQuery the completeness of the customer data to be provided.

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

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

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

Answer : C

Question 5

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 6

The mam characteristics of an AML program testing are:

Atailored and risk-based.

Bstandard and focused.

Cinnovative and evaluative.

Dremedial and interdependent.
Characteristics of Effective AML Program Testing:
Tailored: Custom-designed to address specific organizational risks.
Risk-Based: Prioritizes high-risk areas to ensure optimal resource allocation and compliance.
Alignment with CAMS-Audit and FATF Principles:
Both emphasize the importance of a risk-based approach to AML program evaluation to mitigate the most significant threats.

Answer : A

Question 7

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

Acams Advanced CAMS-Audit Certification Advanced-CAMS-Audit Exam Questions