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Acams Advanced-CAMS-Audit Exam Questions

Vendor

Acams

Exam Code

Advanced-CAMS-Audit

Exam Name

Acams Advanced CAMS-Audit Certification

Exam Duration

Total Questions

90

$ 40

PDF VERSION

DEMO QUESTIONS

Q1:

Which set of activities describes the planning phase of an audit?

A: Request data regarding financials, schedule planning meeting and perform sample testing

B: Request the scheduling of preliminary discussions with management and request a walk-through of key processes

C: Request organizational charts, assess data for sample testing and provide an initial report

D: Request management overview of the organization conduct analytical review of processes and issue findings Comprehensive Detailed Step-by-Step Explanation: Activities in the Planning Phase: The planning phase involves understanding the scope, objectives, and framework for the audit. Preliminary discussions with management set the stage for identifying critical processes and potential risk areas. Key Actions: Scheduling preliminary discussions ensures alignment on audit goals. A walk-through of key processes provides insight into workflows and control mechanisms. Alignment with CAMS-Audit Principles: Effective planning as described in CAMS-Audit guidelines prioritizes communication and process understanding during initial audit phases.

Correct Answer: B

Q2:

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

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

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

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

D: Remediate client files to verify their AML and sanctions risk rating and document enhanced due diligence measures, where applicable. Incorporating Comprehensive Risk Factors By including an assessment of channel, credit, and transaction risks, the client's overall risk profile is accurately determined. This aligns with risk-based approaches emphasized by FATF and CAMS-Audit standards. These risk factors provide a granular view of the client's risk level, ensuring proper classification into Standard or Enhanced Due Diligence categories. Regulatory Alignment FATF Recommendations mandate that client risk assessments consider the products, services, and delivery channels used, as well as geographic and transactional risks. Conclusion Implementing composite AML and sanctions risk scores ensures the institution is compliant with regulatory standards and adequately mitigates risks associated with different client profiles.

Correct Answer: B

Q3:

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: Providing audit documentation of management responses

B: Tracking completion of proposed recommendations

C: Documenting audit team validation testing

D: Testing resiliency of proposed recommendations Purpose of the Document: This document is a management tool to ensure accountability and monitor the progress of resolving outstanding audit findings. Audit Committee's Role: The document facilitates oversight by the audit committee, ensuring timely and effective resolution of recommendations. CAMS-Audit Recommendations: Proper tracking mechanisms are emphasized to align audit processes with institutional and regulatory expectations.

Correct Answer: B

Q4:

During the ongoing due diligence process the company becomes aware that the customer is holding personal assets for a politically exposed person (PEP). What should the auditor recommend to enhance the control environment for this customer relationship? (Select Three.)

A: File a suspicious activity report as the previous risk rating was not correct.

B: Deploy automated monitoring toots to efficiently peruse the customer's KYC information and assure that the customer's KYC risk rating is correct.

C: Designate the account as a PEP-account.

D: Conduct enhanced due diligence and enhanced ongoing monitoring of the customer relationship.

E: Review and document the details of the customer s asset-holding arrangement.

F: Review the customer risk profile every two years as with any other customers. C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks. D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies. E: Documenting the details of the asset-holding arrangement provides clarity on the customer's profile and any associated risks.

Correct Answer: C, D, E

Q5:

Which is the most significant risk associated with KYC requirements being considered a low priority not designed into processes and subsequently implemented after the products are already launched?

A: Product launches may not be adequately prepared.

B: Client experience improves as accounts can be opened more quickly.

C: Product launches will motivate frontline to get more customers.

D: Frontline will not complete adequate CDD. Critical Impact: Absence of CDD processes during product launch leaves the institution exposed to onboarding high-risk customers without proper risk assessment. Guidelines and Compliance: FATF standards emphasize embedding CDD in all stages of customer interaction to mitigate ML/TF risks.

Correct Answer: D

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