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

Question 1

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. Consolidated

B. Inherent

C. Residual

D. Aggregate

Correct Answer: C

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Question 2

An auditor plans to examine a sample targeting newly onboarded, high net-worth clients to assess adherence to their onboarding policies. What sampling methods should the auditor use? (Select Three.)

A. Systematic sampling

B. Discovery sampling

C. Simple random sampling

D. Stratified sampling

E. Snowball sampling

F. Judgment sampling

Correct Answer: A,D,F

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Question 3

When reviewing an entity's sanctions compliance program, the auditor should ensure who is exempt from the Office of Foreign Assets Control's regulations?

A. US citizens residing outside the

B. US entities having branches outside the US

C. Non-US citizens residing in the US

D. Non-US entities having branches outside the US

Correct Answer: C

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Question 4

When reviewing changes to the organizational structure of an AML department, which factor should an auditor assess?

A. Business reporting lines

B. Changes in board members

C. Interaction with internal audit

D. Staffing levels on the AML team

Correct Answer: D

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Question 5

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. Tracking completion of proposed recommendations

B. Testing resiliency of proposed recommendations

C. Documenting audit team validation testing

D. Providing audit documentation of management responses

Correct Answer: A

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Question 6

Following completion of testing and tuning of the parameters and thresholds of the transaction monitoring model which final step should the team recommend as necessary to verify effective model functioning?

A. Regulatory approvals

B. Audit continuous monitoring

C. Model validation

D. Data validation

Correct Answer: C

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Question 7

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

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

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

C. Remediate client files to verify their AML and sanctions risk rating and document enhanced due diligence measures, where applicable.

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

Correct Answer: A

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Question 8

A financial institution (FI) recently updated its transaction monitoring (TM) thresholds During validation which should be provided as evidence of optimized thresholds'? (Select Two.)

A. A copy of the FI's AML risk assessment

B. Above-the-line and below-the-line testing

C. Comparison against past suspicious activity reported

D. Proof of validation from the TM software provider

E. Length of time the FI has deployed the software program

Correct Answer: B,C

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Question 9

Which should the external auditor recommend to ensure that the institution did not facilitate transactions involving a sanctioned person?

A. Perform a security risk and access assessment on the sanction screening tool to ensure more timely sanctions lists are uploaded.

B. Periodically monitor the sanctions lists uploaded by the screening tool to ensure the most up-to-date lists are in the system.

C. Re-screen all transactions based on the sanctions lists that were active at that time but not uploaded.

D. Re-screen all transactions over the period of time when the updated sanction lists were not uploaded against the current sanctions lists.

Correct Answer: D

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

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