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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The auditor finds that the customer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year.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The auditor finds that the customer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year.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...
To complete testing which sampling method should the auditor use to identify the sample size?
The auditor determines that the population for transaction monitoring testing can be stratified into five distinct categories. To complete testing which sampling method should the auditor use to identify the sample size?A . JudgmentalB . ProportionalC . StatisticalD . Risk-basedView AnswerAnswer: C Explanation: Importance of Statistical Sampling in Transaction Monitoring...
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 launch of these services? (Select Three.)
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 launch of these services? (Select Three.)A . M1.1B . M1.2C . M2.1D . M3.2E . M4.2F . M5.2View AnswerAnswer: A,...
What is the role of the internal audit in the governance process?
What is the role of the internal audit in the governance process?A . Perform quality assurance testing of transaction monitoring.B . Monitor the risks of noncompliance with applicable laws and regulations.C . Periodically evaluate the effectiveness of processes and controls.D . Execute the corrective action plan.View AnswerAnswer: C Explanation: Role...
