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A recent regulatory examination identified serious deficiencies in the AML program. Which action should the organization take first?

A.

Enhance the ongoing employee training program so that employees are aware of their respective AML roles and responsibilities.

B.

Initiate a request for proposals for new AML systems and solutions.

C.

Engage a qualified third party to review the deficiencies and assist in developing a remediation plan.

D.

Change the designated head of AML compliance and request the newly appointed head of AML compliance produce a remediation plan.

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

An audit finding can be closed when:

A.

all necessary evidence is collected and analyzed.

B.

the underlying risk is reassessed and mitigated.

C.

the final audit report is ready for delivery.

D.

the follow-up actions are completed.

Which is considered a minimum requirement in a customer identification program?

A.

Transaction reporting procedures used to report suspicious transactions to the regulator

B.

Transaction monitoring procedures that specify the information that will be retained in each transaction

C.

Account opening procedures that specify the information that will be obtained from each customer

D.

Customer enhanced due diligence procedures used to identify unusual transactions

Which products/services increase the risk level for money laundering for XYZ Bank?

A.

Payable through accounts

B.

International fund transfers

C.

Letters of credit

D.

Foreign exchange services

Which can be excluded from an audit report?

A.

The risk or control framework or other criteria used as a basis for the overall opinion

B.

The scope, including the time period to which the opinion pertains

C.

Overall opinions, judgments or conclusions reached in prior audit reports

D.

The overall opinion judgment, or conclusion reached

An auditor plans to examine a sample targeting newly onboarded, high net-worth clients to assess adherence to their onboarding policies. What sampling methods should the auditor use? (Select Three.)

A.

Judgment sampling

B.

Stratified sampling

C.

Discovery sampling

D.

Simple random sampling

E.

Snowball sampling

F.

Systematic sampling

While reviewing a sample of trade financing documents in a financial institution, an auditor notes that there were instances of potential overvaluation and undervaluation of goods. The auditor intends to check if these were detected and escalated. Which is a reason for such overvaluation and undervaluation?

A.

To disguise dual-use goods

B.

To trade prohibited goods

C.

To move funds or value across national borders

D.

To defraud shipping companies

Considering recent changes in the bank's correspondent banking business. Which is the most important risk indicator for the internal auditor to review?

A.

The management and ownership of the respondent bank.

B.

The purpose of the services provided to the respondent bank.

C.

The jurisdiction in which the respondent bank is located.

D.

The major business activities of the respondent bank.

Suspicious activity report testing in the last three audits did not identify any metrics to indicate that volume vanes dramatically each month. Which step should the auditor take next?

A.

Assign to continuous monitoring.

B.

Include the lack of metrics as a deficiency in the reporting.

C.

Escalate the finding regarding the lack of metrics to the board of directors.

D.

Review within the IT audit.