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 . Deletion of transaction records for completed occasional transactions is operationally an efficient practice.
C . The dealers have assured they are able to identify long-standing regular clients that are typically collectors and customers for occasional transactions.
D . Evidence indicated inconsistent application of the client risk rating procedures and lack of evidence of enhanced due diligence measures for higher risk clients.

View Answer

Answer: D

Explanation:

Executive Summary Requirements:

The statement focuses on clear, evidence-based findings, critical for reflecting material deficiencies in enhanced due diligence (EDD) for high-risk clients.

Guidelines for Reporting:

FATF emphasizes the consistent application of risk rating systems to ensure ML/TF risks are adequately mitigated.