Acams Advanced-CAMS-Audit Exam Practice Test Instant Access

Question 1

Which should be evaluated when analyzing components of risk mitigation in an AML risk assessment? (Select Two.)

ALiquidity risk

BProduct risk

COverall customer volume

DOffice of Foreign Assets Control filtering

ECustomer risk
Product Risk: Certain products (e.g., high-value transfers, anonymous payment systems) inherently carry higher AML risks and require tailored risk mitigation measures.
Customer Risk: Understanding the risk profile of customers, including PEPs and high-net-worth individuals, is critical to assessing exposure and implementing risk-based approaches.
Both factors are core components in AML risk assessments, as highlighted in CAMS-Audit materials and FATF standards.

Answer : B, E

Question 2

What should an auditor verify when auditing areas with previously identified AMI deficiencies?

AManagement took appropriate and timely action to address any violations and other deficiencies.

BSenior management agreed that the findings were legitimate.

CManagement discussed an action plan to address any violations and other deficiencies.

DThe business attested to remediating the control gaps.

Answer : A

Question 3

When evaluating an AML training program tor CFT functions the auditor should verify that:

Ainterns and third parties are not included.

Battendees have completed post-course surveys.

Cethics training has been delivered to senior management.

Dtailored training has been provided to AML and CFT staff.
These answers are aligned with best practices and principles outlined in FATF recommendations and the context of AML/CFT risk management and training standards. If further detailed references are required, feel free to ask!

Answer : D

Question 4

Which does a financial institution (FI) need to do when outsourcing an independent audit?

ASelect an audit firm based on recommendations from the AMI compliance officer.

BInvestigate whether the audit firm has conducted prior audits with the Fl.

CEnsure that the scope of the audit and the experience of the auditors match the needs of the Fl.

DChoose an audit firm based on price consideration and geographic location.
Selecting an Audit Firm:
The scope and expertise of the audit firm must align with the institution's risk profile and regulatory requirements to ensure the audit's effectiveness.
Best Practices in Outsourced Audits:
Properly scoping and selecting auditors with relevant AML/CFT experience ensures compliance and minimizes operational risks.
CAMS-Audit Guidance:
Advanced CAMS-Audit emphasizes the importance of tailoring audit scopes and selecting experienced auditors for outsourced engagements.

Answer : C

Question 5

Which should the auditor recommend to management in terms of the client's risk rating procedures?

ARemove enhanced due diligence requirements for long-standing clients that are art collectors and do not transact with precious metals.

BInclude an assessment of risk factors of channel, credit, and transaction risk to determine the client's composite AML and sanctions risk score.

CProvide staff with training on new record retention requirements for occasional transactions.

DRemediate client files to verify their AML and sanctions risk rating and document enhanced due diligence measures, where applicable.
Incorporating Comprehensive Risk Factors
By including an assessment of channel, credit, and transaction risks, the client's overall risk profile is accurately determined. This aligns with risk-based approaches emphasized by FATF and CAMS-Audit standards.
These risk factors provide a granular view of the client's risk level, ensuring proper classification into Standard or Enhanced Due Diligence categories.
Regulatory Alignment
FATF Recommendations mandate that client risk assessments consider the products, services, and delivery channels used, as well as geographic and transactional risks.
Conclusion
Implementing composite AML and sanctions risk scores ensures the institution is compliant with regulatory standards and adequately mitigates risks associated with different client profiles.

Answer : B

Question 6

What is the role of the internal audit in the governance process?

APerform quality assurance testing of transaction monitoring.

BMonitor the risks of noncompliance with applicable laws and regulations.

CPeriodically evaluate the effectiveness of processes and controls.

DExecute the corrective action plan.
Role of Internal Audit:
Internal audit is tasked with evaluating and improving the effectiveness of governance, risk management, and control processes within the organization.
Periodic evaluations ensure that AML/CFT processes remain robust and effective against emerging risks.
Alignment with CAMS-Audit Guidance:
Advanced CAMS-Audit training highlights the need for internal audit to focus on process effectiveness rather than operational responsibilities, such as quality assurance or corrective actions.

Answer : C

Question 7

Review of client files reveals that staff members have been performing negative media searches for clients only when they recognize the client name. When an interesting story is identified a print of the results is inserted in the client file. There are no clear procedures on adverse media screening. Which should the auditor recommend? {Select Two.)

AEvidence of negative media screening retained in client files must comprise negative reports only.

BAll staff members should be provided with additional training to ensure they adhere to standard procedures.

CIdentification of relevant reports via adverse media searches must be escalated for an assessment for materiality.

DPrivacy regulation requires that clients who have a print copy of the adverse media m their files should be notified.

EProcedures should be enhanced to require that all clients are subject to regular negative media screening.
Adverse Media Screening Requirements:
Negative media screening is a critical part of customer due diligence (CDD) as highlighted in FATF Recommendation 10. Proper training ensures staff apply consistent procedures.
Regular screening of all clients ensures ongoing monitoring of risks, aligning with the risk-based approach mandated by AML standards.
Key Compliance Justification:
Staff training and procedural updates mitigate the risk of inconsistent adverse media identification, a key finding in compliance audits.

Answer : B, E

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