Reliable Acams Advanced-CAMS-Audit Exam Dumps

Question No: 1

MultipleChoice

Review of client files reveals that staff members have been performing negative media searches for clients only when they recognize the client name. When an interesting story is identified a print of the results is inserted in the client file. There are no clear procedures on adverse media screening. Which should the auditor recommend? {Select Two.)

Options

AEvidence of negative media screening retained in client files must comprise negative reports only.

BAll staff members should be provided with additional training to ensure they adhere to standard procedures.

CIdentification of relevant reports via adverse media searches must be escalated for an assessment for materiality.

DPrivacy regulation requires that clients who have a print copy of the adverse media m their files should be notified.

EProcedures should be enhanced to require that all clients are subject to regular negative media screening.
Adverse Media Screening Requirements:
Negative media screening is a critical part of customer due diligence (CDD) as highlighted in FATF Recommendation 10. Proper training ensures staff apply consistent procedures.
Regular screening of all clients ensures ongoing monitoring of risks, aligning with the risk-based approach mandated by AML standards.
Key Compliance Justification:
Staff training and procedural updates mitigate the risk of inconsistent adverse media identification, a key finding in compliance audits.

Question No: 2

MultipleChoice

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? (Choose Two.)

Options

AScenario 1

BScenario 4

CScenario 5

DScenario 6

EScenario 7
Scenario 1: Evaluates unusual activity, such as large, unexplained deposits or withdrawals, which are red flags in charity-related accounts .
Scenario 7: Exads to detect inconsistencies with the stated purpose, ensuring adherence to AML standards for NPOs .

Question No: 3

MultipleChoice

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

Options

Ainterns and third parties are not included.

Battendees have completed post-course surveys.

Cethics training has been delivered to senior management.

Dtailored training has been provided to AML and CFT staff.
These answers are aligned with best practices and principles outlined in FATF recommendations and the context of AML/CFT risk management and training standards. If further detailed references are required, feel free to ask!

Question No: 4

MultipleChoice

Which is the most significant risk associated with KYC requirements being considered a low priority not designed into processes and subsequently implemented after the products are already launched?

Options

AProduct launches may not be adequately prepared.

BClient experience improves as accounts can be opened more quickly.

CProduct launches will motivate frontline to get more customers.

DFrontline will not complete adequate CDD.
Critical Impact:
Absence of CDD processes during product launch leaves the institution exposed to onboarding high-risk customers without proper risk assessment.
Guidelines and Compliance:
FATF standards emphasize embedding CDD in all stages of customer interaction to mitigate ML/TF risks.
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Question No: 5

MultipleChoice

Which statements demonstrate an effective use of risk appetite in an organization? (Choose Two.)

Options

ARisk appetite statements should remain stable and consistent, even in changing business conditions.

BDetermining risk appetite should include a discussion about an organization becoming overly risk-averse.

CRisk appetite statements do not need specific indicators to alert management when the level of acceptable risk is exceeded.

DWhen discussing and managing risk, 'risk appetite' and 'risk tolerance' can be used interchangeably.

EAnalyzing risk appetite statements is important to reaching a meaningful articulation of risk appetite.

Question No: 6

MultipleChoice

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 Choose?

Options

ARisk-based

BJudgmental

CStatistical

DProportional
Appropriateness of Judgmental Sampling:
Judgmental sampling is optimal when variability in report content and complexity necessitates the auditor's discretion to select the most informative samples.
Guideline Support:
Basel and FATF emphasize auditor judgment in situations requiring qualitative evaluation of governance reports.

Question No: 7

MultipleChoice

Which is a true statement about the computer-assisted audit tool (CAAT)?

Options

ABoth CAAT and traditional methods of auditing allow auditors to build conclusions based upon a limited sample of a population.

BKYC data that have been incorporated into the warehouse could still be changed if need be from using CAAT.

CAuditors using CAAT could have all customer addresses from the past 10 years while auditors using traditional methods of auditing could only have a sample of these customer addresses.

DCAAT cannot be customized to scrutinize huge volumes of data and produce specific procedures that could replace the requirement for the auditor's own procedures.
Capabilities of CAAT:
CAAT provides comprehensive data access, allowing auditors to review all customer data over extended periods, unlike traditional methods that rely on sampling.
Irrelevant Options:
A: Limited samples are more typical of traditional methods.
B: Data incorporated in the warehouse should not be changeable as it would undermine audit integrity.
D: CAAT can be customized for specific audit needs.

Question No: 8

MultipleChoice

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

Options

AA copy of the FI's AML risk assessment

BComparison against past suspicious activity reported

CAbove-the-line and below-the-line testing

DLength of time the FI has deployed the software program

EProof of validation from the TM software provider
Comparison Against Past Suspicious Activity Reported:
This evaluates whether the new thresholds are identifying similar or improved patterns of suspicious activity compared to prior thresholds.
Helps validate that the updated thresholds align with the institution's AML risk profile and regulatory expectations.
Above-the-Line and Below-the-Line Testing:
Above-the-line tests verify that alerts generated by the thresholds include expected suspicious transactions.
Below-the-line tests assess transactions below the threshold to ensure no significant suspicious activities are missed.
CAMS-Audit Reference:
Advanced CAMS-Audit frameworks emphasize the importance of both historical comparison and robust testing methodologies to validate transaction monitoring system updates.

Free Acams Advanced-CAMS-Audit Exam Dumps August 2026