Free Practice Questions for ACAMS Advanced-CAMS-Audit Exam

Key Assessment Factors for AML Structure Changes:

Staffing levels ensure the AML department has adequate resources to meet its obligations, especially in light of new responsibilities or organizational changes​​.

Irrelevant Options:

A:Interaction with internal audit is important but not directly tied to structural changes.

C:Changes in board members are governance-related, not operational AML concerns.

D:Reporting lines are relevant but secondary to resource adequacy.

Answer:A. Management took appropriate and timely action to address any violations and other deficiencies.

Filing an SAR based on reasonable grounds for suspicion ensures compliance with AML obligations and demonstrates the effectiveness of the investigative process.

Exemptions from OFAC Regulations:

Non-US citizens residing in the US are typically subject to OFAC regulations unless explicitly exempted. However, understanding exemptions is vital for sanctions compliance.

Auditor's Role in Sanctions Compliance:

Auditors must review whether the entity’s compliance program correctly identifies and exempts individuals or entities as per OFAC guidelines.

CAMS-Audit Reference:

CAMS-Audit recommends thorough reviews of sanctions compliance programs, focusing on adherence to OFAC requirements and exemptions​​.

AML Policy Expectations:

Staff training is a fundamental component of an effective AML program. FATF Recommendations and Basel Committee guidelines require AML policies to address staff training to ensure compliance with AML/CFT laws​

Understanding Client Risk Scoring Methodology:

Reviewing the AML risk assessment offers a comprehensive view of the institution’s client base, risk appetite, and segmentation strategies.

Preparation Steps:

Assessing the AML risk assessment ensures that auditors understand the institution’s framework for categorizing and managing client risks.

Importance in CAMS-Audit Framework:

CAMS-Audit highlights the necessity of linking client risk scoring to the broader institutional AML risk assessment​​.

Explanation:Scenarios 7 and 8 align with elder abuse detection by focusing on unusual account behaviors, like abrupt large withdrawals or transactions inconsistent with the elder's profile. Patterns like these often indicate exploitation​​.

Importance of Statistical Sampling in Transaction Monitoring Testing:

Statistical sampling is the most suitable method when dealing with stratified populations, as it ensures a representative sample is drawn from each distinct category​​.

This method allows auditors to achieve reliable results by applying mathematical and probabilistic models to calculate the required sample size, ensuring unbiased and valid conclusions​.

Relevance to Stratified Populations:

When the transaction monitoring population is divided into distinct categories, statistical sampling ensures that each category is proportionately represented based on its size or risk level within the overall population​​.

Evaluation of Other Options:

Judgmental Sampling:Relies on auditor discretion and may introduce bias, making it unsuitable for ensuring proportional representation in stratified populations.

Proportional Sampling:Focuses only on proportional representation but does not leverage statistical tools to determine the optimal sample size or confidence levels.

Risk-Based Sampling:While effective in certain contexts, it is better suited for focusing on high-risk categories rather than ensuring comprehensive representation of all strata.

Alignment with Advanced CAMS-Audit Standards:

Advanced CAMS-Audit recommends statistical sampling for stratified populations to ensure that all categories are adequately tested and results are statistically valid for compliance and performance assessments​​.

Conclusion:The auditor should usestatistical samplingto identify the sample size when testing a stratified population for transaction monitoring. This ensures a reliable, unbiased, and mathematically sound basis for the audit.