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

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

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

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.)

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?

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

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?

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

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

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.

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

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?

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

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

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.)

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

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

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

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

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.)

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?