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Which should the auditor recommend?
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...
What further investigation should the auditor undertake?
When sample testing client transaction records, the auditor finds that a client offered to sell a piece of art on a commission basis. A sale was completed and the purchase price was remitted to the client with less commission. What further investigation should the auditor undertake?A . Update the national...
Which finding indicates issues that could result in clients being subject to incorrect scenarios and thresholds?
Which finding indicates issues that could result in clients being subject to incorrect scenarios and thresholds?A . Firming 2B . Finding 4C . Finding 5D . Finding 7View AnswerAnswer: D Explanation: Significance of Finding 4 in Scenario and Threshold Calibration: Finding 4 typically points to issues with the alignment of...
What conclusion should the auditor make regarding AML training for outsourced AML providers?
What conclusion should the auditor make regarding AML training for outsourced AML providers?A . The approach outlined by the Dank is deficient, as the service providers are not pan of the Danks AML training during its staff onboarding.B . The approach outlined by the Dank is appropriate as the Dank...
Which statement is most appropriate for summarizing detailed findings?
The standard audit report format requires that an executive summary of the findings is included. Which statement is most appropriate for summarizing detailed findings?A . Although the evidence of enhanced due diligence performed was not available audit was satisfied that the risk of higher risk clients has been appropriately mitigated.B...
Which sampling method should the auditor select?
The auditor reviews the AML compliance program and after a walk-through, determines that AML-related reports to the board could be useful to test the governance and management oversight. The AML reports vary in content and complexity. Which sampling method should the auditor select?A . Risk-basedB . JudgmentalC . StatisticalD ....
Which step should the auditor take first?
An auditor is asked to select a judgmental sample from a population of 1 000 clients onboarded during the previous 12 months. Which step should the auditor take first?A . Review the CDD onboarding policies and procedures to determine the criteria for selection.B . Evaluate quality assurance processes tor onboarding...
The auditor finds that the customer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year. The auditor’s observations should Include that the CRA should:
The auditor finds that the customer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year. The auditor’s observations should Include that the CRA should:A . be updated more often given the risk of the entity.B . include an assessment of jurisdiction where...
Which should the external auditor recommend to ensure that the institution did not facilitate transactions involving a sanctioned person?
Which should the external auditor recommend to ensure that the institution did not facilitate transactions involving a sanctioned person?A . Re-screen all transactions over the period of time when the updated sanction lists were not uploaded against the current sanctions lists.B . Perform a security risk and access assessment on...
What model test verifies that alerts indicative of potentially suspicious activity are not missed due to threshold settings?
What model test verifies that alerts indicative of potentially suspicious activity are not missed due to threshold settings?A . Black-box configurationB . Above-the-lineC . Gap analysisD . Below-the-lineView AnswerAnswer: D Explanation: Understanding Below-the-Line Testing: Below-the-line testing evaluates scenarios where alerts were not generated but could have been if the thresholds...
