Question # 1

During the auditing process the auditor finds that the entity never updates the customers risk assessment. Which remediation actions should the auditor suggest? (Select Two.) 

A. Compliance regularly updates the lists of high- and medium-risk countries to ensure updated customer risk profiles. 
B. Audit designates an audit manager to review customer profiles annually.  
C. Delete non-active customer profiles to reduce the workload of ongoing surveillance.  
D. Management engages an independent third party to update all the customer risk profiles.  
E. The business updates the customer risk profiles periodically in accordance with the customer risk level.  

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Question # 2

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.

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Question # 3

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

A. Self-declaration or Beneficial ownership should not be accepted as it is not adequate.  
B. Overseas shareholders not involved in the customer's dally operations are not beneficial owners.  
C. The purpose and intended nature of the business relationship were not reviewed m the assessment.
D. The ultimate beneficial owners of the customer need to be Identified and verified.  
E. If this was a face-to-face customer, the overall customer risk rating should be changed to low.  

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Question # 4

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

A. Board approval for the suspicious activity report filing by the compliance department.  
B. Independent review by the compliance officer's line manager.  
C. Adverse news search results against the customers and its controlling persons.  
D. Policies and procedures relating to AML investigations and suspicious activity report filing.  
E. Historical transaction data of the customer s account.  

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Question # 5

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

A. The compliance officer concluded the investigation approximately 3 months later and filed a suspicious activity report
B. The compliance officer concluded from the report that there are reasonable grounds for suspicion and filed a suspicious activity report. 
C. The compliance officer filed a suspicious activity report and omitted details regarding the reason it was filed. 
D. The compliance officer decided not to cease the Business relationship hut kept the account under rigorous monitoring process.

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Question # 6

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 

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Question # 7

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.  

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Question # 8

Which key risk indicator should the internal auditor consider when reviewing correspondent banking activities?

A. Volume of transaction activity referred by the respondent bank.  
B. Size and stature of a respondent bank's operations in its home country.  
C. Number of respondent banks located in higher risk jurisdictions.  
D. Number of correspondent banking relations terminated.  

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Question # 9

Which are objectives of the issue confirmation step in the audit issue management process? (Select Two.)

A. Findings ate explained and assigned to the accountable owners. 
B. Additional remediation is identified and planned.  
C. Findings ate clearly written and facts are accurate  
D. Communication, follow-up. and documentation are tracked on scheduled sustainability validations.
E. Compliance Identifies and schedules pre-exam validation as appropriate.  

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Question # 10

Which scenarios should be used to monitor for potential elder abuse? (Select Two.)  

A. Scenarios 1 
B. Scenarios 2 
C. Scenarios 5 
D. Scenarios 7 
E. Scenarios 8 

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