Acams Advanced-CAMS-Audit Exam Practice Test Instant Access

Question 1

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

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

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

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

DThe compliance officer decided not to cease the Business relationship hut kept the account under rigorous monitoring process.
Filing an SAR based on reasonable grounds for suspicion ensures compliance with AML obligations and demonstrates the effectiveness of the investigative process.

Answer : B

Question 2

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 3

Which circumstance would impair an auditor's independence and objectivity?

AAttending internal meetings where key risk indicators are discussed

BDonating funds to a local chanty which relates to the organization being audited

CWorking with staff to design and implement key controls

DPresenting at a local audit industry event where best practices are discussed
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.

Answer : C

Question 4

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

Question 5

The standard audit report format requires that an executive summary of the findings is included. Which statement is most appropriate for summarizing detailed findings'?

AAlthough the evidence of enhanced due diligence performed was not available audit was satisfied that the risk of higher risk clients has been appropriately mitigated.

BDeletion of transaction records for completed occasional transactions is operationally an efficient practice.

CThe dealers have assured they are able to identify long-standing regular clients that are typically collectors and customers for occasional transactions.

DEvidence indicated inconsistent application of the client risk rating procedures and lack of evidence of enhanced due diligence measures for higher risk clients.
Executive Summary Requirements:
The statement focuses on clear, evidence-based findings, critical for reflecting material deficiencies in enhanced due diligence (EDD) for high-risk clients.
Guidelines for Reporting:
FATF emphasizes the consistent application of risk rating systems to ensure ML/TF risks are adequately mitigated.

Answer : D

Question 6

If a final audit communication contains a significant error, the chief audit executive must:

Arecall the audit report assess the error and resubmit the correct one.

Breport the error to the local AML regulator.

Creevaluate the item(s) and resubmit findings for discussion on factual accuracy.

Dtell those who received the communication of the error and corrections.
A significant error in an audit report undermines the credibility of the findings. The appropriate action is to recall the report, reassess the error, and submit an accurate report to stakeholders. This ensures integrity and compliance with audit standards.

Answer : A

Question 7

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

AHorizontal

BFull scope

CVertical

DRisk-based
Understanding the Vertical Approach:
A vertical audit focuses on reviewing the entire process or function within a single area or department, such as testing KYC files for compliance and effectiveness in a specific customer group or business line.
Application in AML Examinations:
Vertical audits are particularly useful for examining KYC processes as they allow auditors to trace the end-to-end workflow, from customer onboarding to risk assessment and ongoing monitoring.
Alignment with Advanced CAMS-Audit Guidelines:
The vertical approach provides detailed insights into compliance gaps within the KYC function, helping auditors identify root causes and systemic issues, which is emphasized in CAMS-Audit training.

Answer : C

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