Latest Advanced-CAMS-Audit Exam Torrent Must Be a Great Beginning to Prepare for Your Exam - itPass4sure
Latest Advanced-CAMS-Audit Exam Torrent Must Be a Great Beginning to Prepare for Your Exam - itPass4sure
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ACAMS Advanced-CAMS-Audit Exam Syllabus Topics:
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ACAMS Advanced CAMS-Audit Certification Exam Sample Questions (Q54-Q59):
NEW QUESTION # 54
Which action would an auditor take to evaluate design effectiveness?
- A. Carry out a sample check of suspicious activity reports and make sure they are in line with policies and procedures.
- B. Check whether the policies and procedures are consistent with the authorities' regulations.
- C. Confirm that customer records are being kept in accordance with policies and procedures.
- D. Confirm that alerts in transaction monitoring have been properly escalated or waived.
Answer: B
Explanation:
* Explanation:Evaluating design effectiveness involves determining whether policies and procedures align with regulatory standards, which sets the foundation for a compliant AML/CFT program. This is a design-level assessment rather than testing implementation or outcomes, which would pertain to operational effectiveness.
NEW QUESTION # 55
Considering recent changes in the bank's correspondent banking business. Which is the most important risk indicator for the internal auditor to review?
- A. The management and ownership of the respondent bank.
- B. The jurisdiction in which the respondent bank is located.
- C. The purpose of the services provided to the respondent bank.
- D. The major business activities of the respondent bank.
Answer: B
Explanation:
Jurisdictional risk is critical in correspondent banking due to potential exposure to countries with weaker AML
/CFT controls, high corruption levels, or sanctions.
NEW QUESTION # 56
Which circumstance would impair an auditor's independence and objectivity?
- A. Working with staff to design and implement key controls
- B. Presenting at a local audit industry event where best practices are discussed
- C. Attending internal meetings where key risk indicators are discussed
- D. Donating funds to a local chanty which relates to the organization being audited
Answer: A
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.
NEW QUESTION # 57
Which are key responsibilities of internal auditors? (Select Two.)
- A. Acting as a catalyst for improvement
- B. Determining appropriate risk appetite of the entity
- C. Evaluating the management of risk
- D. Implementing controls and other safeguards
- E. Mitigating the risks facing the organization
Answer: A,C
Explanation:
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.
NEW QUESTION # 58
The auditor finds that thecustomer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year. The auditor's observations should Include that the CRA should:
- A. be updated more often given the risk of the entity.
- B. include a qualitative overlay that 95% of the products offered are subject to regulatory exemptions.
- C. allow for sales oy third patties other than advisors since most of the customers are local residents.
- D. include an assessment of jurisdiction where the customer currently resides as this may have changed.
Answer: D
Explanation:
Dynamic Nature of Customer Risk Assessment (CRA):
* A comprehensive CRA should incorporate jurisdictional risks, as customer location changes could introduce new risks, such as exposure to high-risk or non-compliant jurisdictions.
FATF Recommendations on Risk-Based Approach:
* Periodic updates to the CRA, including changes in customer location, align with FATF's risk-based approach and Recommendation 10.
Audit Observation Implications:
* Omission of jurisdictional assessments could result in undetected risks, undermining the integrity of the AML program.
NEW QUESTION # 59
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