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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 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 assessmentB . Comparison against past suspicious activity reportedC . Above-the-line and below-the-line testingD . Length of time the...
Which finding must be first remediated in order to understand is risks the organization is exposed to?
Which finding must be first remediated in order to understand is risks the organization is exposed to?A . Finding 1B . Finding 3C . Finding 5D . Finding 8View AnswerAnswer: A Explanation: Finding 1 This finding likely pertains to foundational gaps in the organization's risk assessment framework or the absence...
Which KYC-related finding poses the most risk to the organization?
Which KYC-related finding poses the most risk to the organization?A . KYC requirements being considered a low priority not designed into business processes and implemented after product launchB . Sanctions fists that are updated on a periodic basis following an annual risk assessmentC . KYC processes not being integrated into...
Which recommendation should the audit team provide to address transaction monitoring (TM) issues?
Which recommendation should the audit team provide to address transaction monitoring (TM) issues?A . Switch off those detection scenarios that are producing too many false positives.B . Apply the same thresholds across all client types to ensure alignment of risk coverage.C . Perform a coverage assessment of the current suite...
During the interview, the local director informs the audit manager that no internal or regulatory audits have occurred since the local director's appointment The local director relies on a locally-approved independent external review of Company A performed 12 months ago by a local firm How should the audit manager respond?
During the interview, the local director informs the audit manager that no internal or regulatory audits have occurred since the local director's appointment The local director relies on a locally-approved independent external review of Company A performed 12 months ago by a local firm How should the audit manager respond?A...
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?
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 . Model validationB . Audit continuous monitoringC . Data validationD . Regulatory approvalsView AnswerAnswer: A Explanation: Purpose of Model Validation:...
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...
