Acams Advanced-CAMS-Audit Exam Practice Test Instant Access

Question 1

A financial institution (FI) recently updated its transaction monitoring (TM) thresholds During validation which should be provided as evidence of optimized thresholds'? (Select Two.)

AA copy of the FI's AML risk assessment

BComparison against past suspicious activity reported

CAbove-the-line and below-the-line testing

DLength of time the FI has deployed the software program

EProof of validation from the TM software provider
Comparison Against Past Suspicious Activity Reported:
This evaluates whether the new thresholds are identifying similar or improved patterns of suspicious activity compared to prior thresholds.
Helps validate that the updated thresholds align with the institution's AML risk profile and regulatory expectations.
Above-the-Line and Below-the-Line Testing:
Above-the-line tests verify that alerts generated by the thresholds include expected suspicious transactions.
Below-the-line tests assess transactions below the threshold to ensure no significant suspicious activities are missed.
CAMS-Audit Reference:
Advanced CAMS-Audit frameworks emphasize the importance of both historical comparison and robust testing methodologies to validate transaction monitoring system updates.

Answer : B, C

Question 2

An auditor is writing the scope for an AML review of a financial institution. The objective is to evaluate how effectively existing controls are designed and operating. Which areas should be assessed? (Select Two.)

AClients of the institution for more than 10 years

BPrevious correspondent banking relationships

CClient base stability

DRecent audit findings

EAML corporate governance
Recent Audit Findings:
Reviewing past findings ensures the institution has addressed previous deficiencies and allows the auditor to assess the effectiveness of implemented corrective actions.
AML Corporate Governance:
Corporate governance is a critical component of AML compliance, involving oversight structures, policies, and accountability mechanisms to prevent money laundering risks.
Alignment with CAMS-Audit Principles:
Advanced CAMS-Audit emphasizes evaluating governance structures and learning from recent audits to maintain robust AML controls.

Answer : D, E

Question 3

Independent testing of the New York branch of a foreign bank is conducted by an outsourced audit firm. The independent testing report should be submitted to which authority in order to provide appropriate level of governance and oversight?

AMain office risk management committee

BBank's designated board committee at the head office

CCompliance oversight committee of the New York branch headed by the chief compliance officer

DNew York branch regulatory compliance committee headed by the chief incumbent of the branch
Reporting to the Head Office Board Committee:
Independent testing reports must be submitted to the highest governance body to ensure proper oversight and alignment with global AML/CFT policies.
This ensures that findings are addressed at the appropriate organizational level.
CAMS-Audit and FATF Guidelines:
Governance frameworks outlined in CAMS-Audit and FATF recommendations emphasize the importance of board-level oversight for critical compliance functions

Answer : B

Question 4

When reviewing an AML policy, an auditor should expect to find that the policy.

Ais aligned with investment strategy.

Bwas reviewed and approved by the money laundering reporting officer.

Chas been approved by regulators.

Dcontains items related to staff training.
AML Policy Expectations:
Staff training is a fundamental component of an effective AML program. FATF Recommendations and Basel Committee guidelines require AML policies to address staff training to ensure compliance with AML/CFT laws

Answer : D

Question 5

Which scenarios should be used to monitor for potential elder abuse? (Select Two.)

AScenarios 1

BScenarios 2

CScenarios 5

DScenarios 7

EScenarios 8

Answer : D, E

Question 6

Which finding must be first remediated in order to understand is risks the organization is exposed to?

AFinding 1

BFinding 3

CFinding 5

DFinding 8
Finding 1
This finding likely pertains to foundational gaps in the organization's risk assessment framework or the absence of a comprehensive understanding of inherent risks. Without addressing this, the organization cannot adequately identify, assess, or mitigate risks effectively.
According to CAMS-Audit standards, a thorough risk assessment is the cornerstone of an effective AML/CFT program. It helps to prioritize resources and design appropriate controls based on the identified risk levels.
Critical Role in Understanding Risks
Remediating foundational issues ensures that the organization has a clear understanding of its risk exposure across all products, services, and jurisdictions. This step is essential before addressing downstream issues such as customer due diligence (CDD) gaps or monitoring inefficiencies.
Alignment with Regulatory Requirements
FATF guidelines and CAMS-Audit practices emphasize that risk assessment should precede other remediation efforts. Without this, the organization may address symptoms rather than root causes of compliance and operational risks.

Answer : A

Question 7

Considering recent changes in the bank's correspondent banking business. Which is the most important risk indicator for the internal auditor to review?

AThe management and ownership of the respondent bank.

BThe purpose of the services provided to the respondent bank.

CThe jurisdiction in which the respondent bank is located.

DThe major business activities of the respondent bank.
Jurisdictional risk is critical in correspondent banking due to potential exposure to countries with weaker AML/CFT controls, high corruption levels, or sanctions.

Answer : C

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