2025 Valid Advanced-CAMS-Audit Exam Updates - 2025 Study Guide [Q18-Q38]

2025 Valid Advanced-CAMS-Audit Exam Updates – 2025 Study Guide [Q18-Q38]

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2025 Valid Advanced-CAMS-Audit Exam Updates – 2025 Study Guide

Advanced-CAMS-Audit Certification – The Ultimate Guide [Updated 2025]

QUESTION 18
Which task should an auditor complete first when preparing to audit the client risk scoring methodology?

Query the completeness of the customer data to be provided.

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

Review the financial institution’s AML risk assessment to understand the institution’s client base.

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

QUESTION 19
What type of audit approach should the auditor use when testing KYC files as part of an AML examination?

Horizontal

Full scope

Vertical

Risk-based

QUESTION 20
When assessing the effectiveness of a transaction monitoring system, which indicators require active monitoring by the auditor or compliance’? (Select Two.)

Data quality and mapping

Scenario altering techniques

Robustness of feedback relating to submitted suspicious activity reports

False positive ratio

Complexity of monitoring scenarios

QUESTION 21
During the auditing process the auditor finds that the entity never updates the customers risk assessment.
Which remediation actions should the auditor suggest? (Select Two.)

Compliance regularly updates the lists of high- and medium-risk countries to ensure updated customer risk profiles.

Audit designates an audit manager to review customer profiles annually.

Delete non-active customer profiles to reduce the workload of ongoing surveillance.

Management engages an independent third party to update all the customer risk profiles.

The business updates the customer risk profiles periodically in accordance with the customer risk level.

QUESTION 22
The auditor determines that the population for transaction monitoring testing can be stratified into five distinct categories. To complete testing which sampling method should the auditor use to identify the sample size?

Judgmental

Proportional

Statistical

Risk-based

QUESTION 23
Which is considered a minimum requirement in a customer identification program?

Transaction reporting procedures used to report suspicious transactions to the regulator

Transaction monitoring procedures that specify the information that will be retained in each transaction

Account opening procedures that specify the information that will be obtained from each customer

Customer enhanced due diligence procedures used to identify unusual transactions

QUESTION 24
Suspicious activity report testing in the last three audits did not identify any metrics to indicate that volume vanes dramatically each month. Which step should the auditor take next?

Assign to continuous monitoring.

Include the lack of metrics as a deficiency in the reporting.

Escalate the finding regarding the lack of metrics to the board of directors.

Review within the IT audit.

QUESTION 25
The mam characteristics of an AML program testing are:

tailored and risk-based.

standard and focused.

innovative and evaluative.

remedial and interdependent.

QUESTION 26
What factors are considered tor conducting an external audit and assurance review? (Select Three.)

Type of reporting format

Budget available for the review

Purpose of the review

Type of risk assessment needed

Users of the external report

Information that will be required

QUESTION 27
When conducting an audit of a money services business (MSB), the frequency of the review depends on the country’s regulatory practices and the MSB’s.

regulatory requirements.

internal controls.

policy.

scope.

QUESTION 28
What model test verifies that alerts indicative of potentially suspicious activity are not missed due to threshold settings?

Black-box configuration

Above-the-line

Gap analysis

Below-the-line

QUESTION 29
An audit manager identifies that a financial institution (Fl) has not produced a business-level risk assessment in accordance with policy. The senior manager of the Fl assures that assessing risk at the individual client level and aggregating the data is an acceptable approach. How should the audit manager proceed?

Issue a finding that requires the completion of a business-level risk assessment.

Accept the risk conclusions provided by the senior manager.

Test the accuracy of the mathematical aggregation of the risk assessments.

Discuss with the senior manager to establish the risk appetite.

QUESTION 30
As an auditor reviewing this investigation report, which indicates an effective process?

The compliance officer concluded the investigation approximately 3 months later and filed a suspicious activity report.

The compliance officer concluded from the report that there are reasonable grounds for suspicion and filed a suspicious activity report.

The compliance officer filed a suspicious activity report and omitted details regarding the reason it was filed.

The compliance officer decided not to cease the Business relationship hut kept the account under rigorous monitoring process.

QUESTION 31
Which requirement of a financial institution’s compliance program should an auditor review first to understand key roles and responsibilities?

Designation of an individual or individuals responsible for coordinating and monitoring day-to-day compliance

List of high-risk customers subject to enhanced due diligence and the measures taken to mitigate the risks

Names of politically exposed persons that are subject to ongoing monitoring

List of suspicious transactions reported to the regulator

QUESTION 32
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.)

File a suspicious activity report as the previous riskrating was not correct.

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

Designate the account as a PEP-account.

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

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

Review the customer risk profile every two years as with any other customers.

QUESTION 33
Which are objectives of the issue confirmation step in the audit issue management process? (Select Two.)

Findings ate explained and assigned to the accountable owners.

Additional remediation is identified and planned.

Findings ate clearly written and facts are accurate

Communication, follow-up. and documentation are tracked on scheduled sustainability validations.

Compliance Identifies and schedules pre-exam validation as appropriate.

QUESTION 34
Which key risk indicator should the internal auditor consider when reviewing correspondent banking activities?

Volume of transaction activity referred by the respondent bank.

Size and stature of a respondent bank’s operations in its home country.

Number of respondent banks located in higher risk jurisdictions.

Number of correspondent banking relations terminated.

QUESTION 35
When reviewing an AML policy, an auditor should expect to find that the policy.

is aligned with investment strategy.

was reviewed and approved by the money laundering reporting officer.

has been approved by regulators.

contains items related to staff training.

QUESTION 36
An auditor should present exceptions identified during testing to the auditee after.

preliminary observation of exceptions.

final audit report issuance

performance of additional testing.

analysis of likelihood and impact.

QUESTION 37
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 andofficers,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.)

Alert the person incharge of releasing the model that me release must comply with the specifications.

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

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

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

Report this matter to the board of directors.

QUESTION 38
Which factors should be taken into consideration in designing a follow-up strategy when remedial action needs to be taken due to deficiencies identified in an AML audit?

Available resources and board of directors’ commitment

Responsible action owner and internal audit commitment to follow up

Reporting the breach and the regulatory response

Target completion date and status update on remedial action

ACAMS Advanced-CAMS-Audit Exam Syllabus Topics:

Topic	Details
Topic 1	Planning and Scoping: This section of the exam measures the skills of audit managers and covers the processes involved in planning an audit engagement. It includes defining the scope, objectives, and resources required for an effective audit. A critical skill evaluated here is the ability to identify risks and develop a comprehensive audit plan that addresses those risks while ensuring compliance with relevant standards.
Topic 2	Fieldwork and Evaluation: This section of the exam measures the skills of target professionals to demonstrate audit procedures during fieldwork. It involves collecting evidence, testing controls, and evaluating findings to ensure accuracy and reliability.
Topic 3	Corporate Governance and the Audit Function: This section of the exam measures the skills of auditing professionals and covers the principles and frameworks that guide effective governance in organizations. It emphasizes understanding the roles and responsibilities of the board of directors, management, and auditors. A key skill assessed is the ability to evaluate governance structures and their impact on organizational performance.
Topic 4	Reporting, Recommendations, and Follow-Up: This section of the exam measures the skills of audit managers and covers the communication of audit findings to stakeholders. It includes developing clear recommendations for improvement based on evaluation results and ensuring follow-up on those recommendations.