Advanced CAMS-Audit Certification Exam (Advanced-CAMS-Audit) Free Practice Test

Question 1

What conclusion should the auditor make regarding AML training for outsourced AML providers?

A. The approach outlined by the Dank is appropriate as the Dank can rely on a professional service provider to deliver the AML training program for the Dank s staff.

B. The approach outlined by the Dank is deficient, as it does not provide controls for the Dank to verify training delivered by outsourced providers to the bank's staff is appropriate.

C. The approach outlined by the bank Is appropriate as it considers practical issues such as time zone differences and availability of both classroom and online sessions.

D. The approach outlined by the Dank is deficient, as the service providers are not pan of the Dank s AML training during its staff onboarding.

Correct Answer: B

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Question 2

An organization creates a document for its audit committee listing the outstanding audit findings. The list has an executive management owner assigned to each finding, due dates for reporting management's responses and space for management to identity the actions to be taken. Which is a primary purpose of this document?

A. Testing resiliency of proposed recommendations

B. Tracking completion of proposed recommendations

C. Providing audit documentation of management responses

D. Documenting audit team validation testing

Correct Answer: B

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Question 3

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

A. Information that will be required

B. Purpose of the review

C. Type of risk assessment needed

D. Budget available for the review

E. Users of the external report

F. Type of reporting format

Correct Answer: B,C,E

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Question 4

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.)

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

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

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

D. Audit designates an audit manager to review customer profiles annually.

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

Correct Answer: A,B

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Question 5

Findings from a financial institution's (Fl's) regulatory examination suggest that several unidentified risks pose a serious threat. The Fl identifies the risks and implements a set of controls to mitigate those risks.
Which type of risk considers the controls' effectiveness?

A. Aggregate

B. Inherent

C. Residual

D. Consolidated

Correct Answer: C

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Question 6

Which KYC-related finding poses the most risk to the organization?

A. Sanctions fists that are updated on a periodic basis following an annual risk assessment

B. Backlogs and delays in maintaining client files in accordance with the organization's policy

C. KYC requirements being considered a low priority not designed into business processes and implemented after product launch

D. KYC processes not being integrated into the business and associated application systems

Correct Answer: C

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Question 7

Which statements demonstrate an effective use of risk appetite in an organization? (Select Two.)

A. Risk appetite statements do not need specific indicators to alert management when the level of acceptable risk is exceeded.

B. Risk appetite statements should remain stable and consistent, even in changing business conditions.

C. Analyzing risk appetite statements is important to reaching a meaningful articulation of risk appetite.

D. When discussing and managing risk, "risk appetite" and "risk tolerance" can be used interchangeably.

E. Determining risk appetite should include a discussion about an organization becoming overly risk- averse.

Correct Answer: C,E

Question 8

The auditor identifies that the bank has launched trade finance services this year.When rating the various themes of the risk mitigants, which are expected to be impacted by the launchof these services? (Select Three.)

A. M5.2

B. M3.2

C. M1.1

D. M1.2

E. M4.2

F. M2.1

Correct Answer: C,E,F

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Question 9

An audit determines that an important control is not being performed. The operational manager responds to the audit comment stating that they do not have adequate resources in the department to accomplish this task.
The audit item discussion between the auditor and the operational manager is a(n):

A. internal control test.

B. root cause analysis

C. general license authorizing a transaction for an entity, and a specific license authorizing a transaction for an individual.

D. sustainability assessment.

Correct Answer: B

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ACAMS Advanced CAMS-Audit Certification (Advanced-CAMS-Audit) Free Practice Test