2024 ACAMS Advanced CAMS Audit Exam Dumps Questions

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January 18, 2025

ACAMS certification is a highly valuable and sought-after certification for IT professionals seeking to enhance their knowledge and expertise. Advanced CAMS Audit exam is specifically designed to validate the skills required to configure and maintain the AML Certification platform, which is widely used by businesses around the world. These Advanced CAMS Audit exam dumps questions are specifically designed to help you prepare for the exam by testing your knowledge and providing you with valuable insights into the types of questions that you will encounter. Test free ACAMS Advanced CAMS Audit exam questions below.

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1. The auditor reviews the AML compliance program and after a walk-through, determines that AML-related reports to the board could be useful to test the governance and management oversight. The AML reports vary in content and complexity.

Which sampling method should the auditor select?

Risk-based

Judgmental

Statistical

Proportional

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

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

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

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

Remediate client files to verify their AML and sanctions risk rating and document enhanced due diligence measures, where applicable.

3. An audit determines that an important control is not being performed. The operational manager responds to the audit comment stating that they do not have adequate resources in the department to accomplish this task. The audit item discussion between the auditor and the operational manager is a(n):

general license authorizing a transaction for an entity, and a specific license authorizing a transaction for an individual.

internal control test.

sustainability assessment.

root cause analysis

4. An auditor should verify that an institution has ensured its AML systems and controls include:

supporting documents of its risk management policies and risk profile in relation to money laundering.

measures to ensure that money laundering risk is taken into account in its monthly operations.

daily reports by the institution's money laundering reporting officer on the operation and effectiveness of those systems and controls.

training for senior management and the governing body only.

5. When conducting an audit of a money services business (MSB), the frequency of the review depends on the country's regulatory practices and the MSB's.

regulatory requirements.

internal controls.

policy.

scope.

6. Which key elements of testing methodology should be documented? (Select Three.)

A. Documentation requirements of test results supporting the conclusion

B. Sampling method applied to select an appropriate sample size

C. Planned expansion or changes in the business profile of the organization

D. Test objectives and population selection criteria to mitigate the inherent risk in the operational unit

E. Elements contributing to the inherent risk of the organization

F. Relevant testing techniques subject to the nature and size of the test population

7. Audits are designed to provide assurance that what key aspect of risk management framework is adequately designed and functioning effectively?

Procedures

Controls

Reporting

Risks

8. When assessing the KYC process which should an auditor observe from the customer risk assessment? (Select Two)

Self-declaration or Beneficial ownership should not be accepted as it is not adequate.

Overseas shareholders not involved in the customer's dally operations are not beneficial owners.

The purpose and intended nature of the business relationship were not reviewed m the assessment.

The ultimate beneficial owners of the customer need to be Identified and verified.

If this was a face-to-face customer, the overall customer risk rating should be changed to low.

9. What conclusion should the auditor make regarding AML training for outsourced AML providers?

The approach outlined by the Dank is deficient, as the service providers are not pan of the Danks AML training during its staff onboarding.

The approach outlined by the Dank is appropriate as the Dank can rely on a professional service provider to deliver the AML training program for the Dank s staff.

The approach outlined by the Dank is deficient, as it does not provide controls for the Dank to verify training delivered by outsourced providers to the bank's staff is appropriate.

The approach outlined by the bank Is appropriate as it considers practical issues such as time zone differences and availability of both classroom and online sessions.

10. As an auditor reviewing this investigation report, which indicates an effective process?

The compliance officer concluded the investigation approximately 3 months later and filed a suspicious activity report.

The compliance officer concluded from the report that there are reasonable grounds for suspicion and filed a suspicious activity report.

The compliance officer filed a suspicious activity report and omitted details regarding the reason it was filed.

The compliance officer decided not to cease the Business relationship hut kept the account under rigorous monitoring process.

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11. A retail banking small and medium-sized enterprise (SME) customer launches a charity and requests a Corporate-SME account to receive donations and make disbursements.

Which scenarios would most likely identify activity related to a charity account? (Select Two.)

Scenario 1

Scenario 4

Scenario 5

Scenario 6

Scenario 7

12. Which best explains why the auditor rates the audit finding on sanction screening severity high?

The efficiency of the sanction screening tool is not properly tuned due to the wrong sanctions lists.

The finding is on a different audit topic than the KYC related findings.

The tool might miss potential sanction violations given the long intervals before the sanctions lists are updated.

The organization might have reported a sanction breach that is not a current sanction violation.

13. The standard audit report format requires that an executive summary of the findings is included.

Which statement is most appropriate for summarizing detailed findings?

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.

Deletion of transaction records for completed occasional transactions is operationally an efficient practice.

The dealers have assured they are able to identify long-standing regular clients that are typically collectors and customers for occasional transactions.

Evidence indicated inconsistent application of the client risk rating procedures and lack of evidence of enhanced due diligence measures for higher risk clients.

14. A financial institution (FI) recently updated its transaction monitoring (TM) thresholds During validation which should be provided as evidence of optimized thresholds'? (Select Two.)

A copy of the FI's AML risk assessment

Comparison against past suspicious activity reported

Above-the-line and below-the-line testing

Length of time the FI has deployed the software program

Proof of validation from the TM software provider

15. During a sample review, the auditor notices that an alert was generated for a large deposit that was inconsistent with the customer profile. The customer has had no other incidents in the past 10 years and has provided documents to confirm the deposit as a property sale.

What should the auditor do?

Increase the sample size.

Document the conclusion within the audit work papers.

Carry out further investigation of this alert.

Consult with the compliance officer.

16. When reviewing an entity's sanctions compliance program, the auditor should ensure who is exempt from the Office of Foreign Assets Control's regulations?

US entities having branches outside the US

Non-US entities having branches outside the US

US citizens residing outside the

Non-US citizens residing in the US

17. in addition to this investigation report, what Information should the auditor expect to find in the investigative file? (Select Two.)

Board approval for the suspicious activity report filing by the compliance department.

Independent review by the compliance officer's line manager.

Adverse news search results against the customers and its controlling persons.

Policies and procedures relating to AML investigations and suspicious activity report filing.

Historical transaction data of the customer s account.

18. When sample testing client transaction records, the auditor finds that a client offered to sell a piece of art on a commission basis. A sale was completed and the purchase price was remitted to the client with less commission.

What further investigation should the auditor undertake?

Update the national art registry with the sale price of the art work so that art-based money laundering can be detected.

Perform enhanced due diligence on the seller and buyer and update client records with findings

Review procedures for accepting commission sales and determining the buyer's source of funds on a best effort basis

Commission an external investigator to perform enhanced due diligence on the buyer.

19. A financial institution is auditing its correspondent banking relationships and their respective sanctions compliance programs.

Which condition will merit a higher sample size assuming the correspondent banks have a moderate level of risk mitigation?

A fluctuating customer base in an international environment

A well-known customer base m a localized environment

A customer base changing due to a merger in the domestic market

A stable customer base in an international environment

20. The auditor identifies that the bank has launched trade finance services this year. When rating the various themes of the risk mitigants, which are expected to be impacted by the launch of these services? (Select Three.)

M1.1

M1.2

M2.1

M3.2

M4.2

M5.2

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21. Which action would an auditor take to evaluate design effectiveness?

Check whether the policies and procedures are consistent with the authorities' regulations.

Carry out a sample check of suspicious activity reports and make sure they are in line with policies and procedures.

Confirm that alerts in transaction monitoring have been properly escalated or waived.

Confirm that customer records are being kept in accordance with policies and procedures.

22. What should the auditor look for to assess the adequacy of controls for non-profit organizations that are vulnerable to terrorist financing (TF) abuse? (Select Two.)

A. Ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship

B. Exploitation of legitimate entities as conduits for TF for the purpose of escaping asset-freezing measures

C. Concealing of the secretive diversion of funds intended for legitimate purposes to terrorist organizations

D. Testing of the customer's identifying information using reliable and independent source documents

E. The overall volume of cash deposit reporting for the quarter

23. The mam characteristics of an AML program testing are:

tailored and risk-based.

standard and focused.

innovative and evaluative.

remedial and interdependent.

24. Considering recent changes in the bank's correspondent banking business.

Which is the most important risk indicator for the internal auditor to review?

The management and ownership of the respondent bank.

The purpose of the services provided to the respondent bank.

The jurisdiction in which the respondent bank is located.

The major business activities of the respondent bank.

25. What model test verifies that alerts indicative of potentially suspicious activity are not missed due to threshold settings?

Black-box configuration

Above-the-line

Gap analysis

Below-the-line

26. During a sanction review, an auditor notes that several of the bank's large corporate clients continue to route transactions through the bank to certain Office of Foreign Assets Control (OFAC)-sanctioned countries. The head of corporate clients stated that these transactions were executed under the OFAC license.

What should an auditor know to distinguish between an OFAC general license and a specific license?

A general license authorizes a type of transaction and a specific license authorizes a transaction in response to a written license application.

A specific license authorizes a transaction for an entity and a general license authorizes a transaction for an individual.

A general license authorizes a transaction for an entity and a specific license authorizes a transaction for an individual.

A specific license authorizes a type of transaction and a general license authorizes a transaction in response to a written license application.

27. When evaluating an AML training program tor CFT functions the auditor should verify that:

interns and third parties are not included.

attendees have completed post-course surveys.

ethics training has been delivered to senior management.

tailored training has been provided to AML and CFT staff.

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