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 new clients.
C . Initially sample 10% of new clients onboarded.
D . Request a list of high-risk clients onboarded from management.

Answer: A

Explanation:

First Steps for Sampling:

Reviewing onboarding policies ensures the sampling aligns with established risk criteria, improving the relevance and accuracy of the audit findings.

Regulatory Emphasis:

FATF guidance stresses aligning audit sampling with organizational risk assessments and onboarding standards.