Advanced-CAMS-Audit Exam Dumps - Advanced CAMS-Audit Certification Exam

ï‚·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​​.

ï‚·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.

ï‚·Nature of Discussion:

Root cause analysis is required to identify underlying reasons for the failure to perform the control, particularly resource constraints​.

ï‚·Key Compliance Justification:

Addressing the root cause aligns with Basel Committee guidelines on improving control environments and addressing systemic issues in AML compliance​​.

ï‚·Conditions for Closing Audit Findings:

Findings can only be closed when the corrective actions identified in response to the audit findings are implemented and verified as effective.

This includes addressing underlying risks and documenting the resolution process.

ï‚·CAMS-Audit Best Practices:

The audit process must ensure that all follow-up actions mitigate the identified risks, aligning with regulatory and operational standards​​.

ï‚·Testing Operating Effectiveness:

Operating effectiveness testing evaluates whether controls and systems are functioning as intended on a daily basis, including the accuracy and reliability of automated validation processes.

ï‚·Relevance to Data Validation:

The auditor’s role in this scenario ensures that the data flowing into the monitoring software is accurate and aligned with operational requirements, reflecting day-to-day effectiveness.

ï‚·CAMS-Audit Emphasis:

The emphasis on ongoing operational validation is consistent with Advanced CAMS-Audit practices, which stress continuous monitoring of AML system effectiveness​​.

ï‚·Selecting an Audit Firm:

The scope and expertise of the audit firm must align with the institution's risk profile and regulatory requirements to ensure the audit's effectiveness.

ï‚·Best Practices in Outsourced Audits:

Properly scoping and selecting auditors with relevant AML/CFT experience ensures compliance and minimizes operational risks.

ï‚·CAMS-Audit Guidance:

Advanced CAMS-Audit emphasizes the importance of tailoring audit scopes and selecting experienced auditors for outsourced engagements​​.

Identifying inherent risks linked to the bank’s products and services is critical to tailor the audit scope and address high-risk areas comprehensively​​.

A. Ongoing Due Diligence: FATF Recommendations emphasize the need for ongoing monitoring and due diligence of NPOs to detect and prevent misuse for terrorist financing​​.

C. Diversion of Funds: Identifying and mitigating risks of fund diversion to terrorist organizations is a critical component in evaluating NPO vulnerabilities​​.

Explanation:Evaluating design effectiveness involves determining whether policies and procedures align with regulatory standards, which sets the foundation for a compliant AML/CFT program. This is a design-level assessment rather than testing implementation or outcomes, which would pertain to operational effectiveness​​​.