Question 1

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.)

AJudgment sampling

BStratified sampling

CDiscovery sampling

DSimple random sampling

ESnowball sampling

FSystematic sampling
Sampling Methods Justification:
A . Judgment Sampling: Enables the auditor to target high net-worth clients specifically based on their judgment of risk factors.
B . Stratified Sampling: Allows for dividing the population into groups (e.g., high net-worth clients) and selecting samples from each group.
F . Systematic Sampling: Ensures a structured and unbiased selection process, suitable for large datasets.

Answer : A, B, F

Question 2

What factors are considered tor conducting an external audit and assurance review? (Select Three.)

AType of reporting format

BBudget available for the review

CPurpose of the review

DType of risk assessment needed

EUsers of the external report

FInformation that will be required
Factors for External Audit:
C . Purpose of the Review: Determines the scope and focus of the audit to align with regulatory or organizational objectives.
D . Type of Risk Assessment Needed: Tailors the audit methodology to the identified risks.
E . Users of the External Report: Ensures the audit addresses the needs of regulators, stakeholders, or management.

Answer : C, D, E

Question 3

The scoping and planning process of an AML audit of a bank is best guided by review of which document?

AIndependent model validation and testing report of the bank's transaction surveillance systems

BInformation technology security risk assessment of the bank's COD risk rating solution

CReport of independent audit conducted the previous year

DA document prepared to identify the inherent risk associated with a bank's products and services
Identifying inherent risks linked to the bank's products and services is critical to tailor the audit scope and address high-risk areas comprehensively.

Answer : D

Question 4

Which can be excluded from an audit report?

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

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

COverall opinions, judgments or conclusions reached in prior audit reports

DThe overall opinion judgment, or conclusion reached
Exclusion from Current Audit Reports:
Prior conclusions are relevant for context but do not belong in the current report, which should focus on new findings and opinions.
Other Options:
The risk framework, scope, and current conclusions are integral to the current audit report.

Answer : C

Question 5

Which are methods to test internal controls related to the CDD and KYC process? (Select Two.)

AAsk the account officers whether the CDD and KYC information provided is correct.

BConfirm with client onboarding teams whether or not high-risk customers exist.

CReview the accuracy of the gap analysis of the CDD and KYC policies and procedures against local regulations.

DEvaluate the results of the sample testing of new and existing customer relationships for adherence to the CDD and KYC process.

EConfirm if suspicious activity reports were filed following escalation for non-compliance with the CDD and KYC process.
Testing Internal Controls:
C . Gap Analysis: Ensures policies are compliant with local regulations and address identified risks.
D . Sample Testing: Verifies that processes are effectively implemented in practice for both new and existing customers.

Answer : C, D

Free Practice Questions for Acams Advanced-CAMS-Audit Exam

Question 1

Question 2

Question 3

Question 4

Question 5