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Acams Advanced-CAMS-Audit Exam - Topic 2 Question 16 Discussion

When assessing the KYC process which should an auditor observe from the customer risk assessment? (Select Two)
C) The purpose and intended nature of the business relationship were not reviewed m the assessment. and D) The ultimate beneficial owners of the customer need to be Identified and verified.
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.
E) If this was a face-to-face customer, the overall customer risk rating should be changed to low. C: The purpose and intended nature of the business relationship are fundamental elements of customer due diligence (CDD) and should be reviewed in the risk assessment process to understand the rationale behind the customer's activities and their alignment with expected patterns. D: Identifying and verifying the ultimate beneficial owners (UBOs) is a core principle of the KYC process to ensure transparency and mitigate risks related to hidden ownership or illicit activities.

Acams Advanced-CAMS-Audit Exam - Topic 2 Question 16 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam
Question #: 16
Topic #: 2
[All Advanced-CAMS-Audit Questions]

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

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Suggested Answer: C, D

by Blondell at Jul 11, 2025, 03:59 AM

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Hui
7 months ago
Self-declaration alone? That's a red flag!
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Son
8 months ago
Wait, are we really saying overseas shareholders aren't beneficial?
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Lenna
8 months ago
Not sure about changing risk ratings just for face-to-face meetings.
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Emeline
8 months ago
I agree, C is crucial too!
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Aja
8 months ago
D is definitely a must for proper KYC.
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Kelvin
8 months ago
I’m a bit confused about option A; I thought self-declaration could sometimes be acceptable if backed by other documentation.
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Rosita
9 months ago
I feel like I’ve seen a question similar to this before, and I think both C and D might be correct since they relate to understanding the customer better.
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Hollis
9 months ago
I'm not entirely sure about option C, but I remember something about the purpose of the business relationship being key in risk assessments.
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Milly
9 months ago
I think option D is definitely important because identifying the ultimate beneficial owners is crucial for KYC compliance.
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Golda
9 months ago
I feel pretty confident about this one. Options C and D seem like the clear choices - the auditor needs to ensure the KYC process adequately covered those fundamental elements.
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Annmarie
9 months ago
The key here is understanding the core principles of KYC and customer due diligence. Identifying the ultimate beneficial owners and reviewing the purpose/nature of the business are critical steps that the auditor should be observing.
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Sylvia
10 months ago
Hmm, I'm a bit confused about the options here. I'll need to carefully review the details on beneficial ownership and the purpose/nature of the business relationship to determine the best answers.
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Lili
10 months ago
This question seems straightforward - the auditor should be looking at whether the customer's self-declaration and beneficial ownership information were properly assessed and verified as part of the KYC process.
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Evangelina
11 months ago
I feel like the auditor should just follow the money. If the trail leads to shadowy beneficial owners, that's a problem (D). And the business purpose is key (C). Simple as that.
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Blair
11 months ago
B is a bold choice. Overseas shareholders not involved? Yeah, right, that's a big red flag. D and C are the correct answers, no doubt.
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Lettie
10 months ago
I agree, D and C are crucial for a thorough KYC process.
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Cassie
10 months ago
B is definitely a red flag, overseas shareholders not involved is suspicious.
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German
12 months ago
E is just ridiculous. Face-to-face doesn't automatically mean low risk. Gotta dig deeper with D and C.
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Youlanda
10 months ago
Agreed, understanding the purpose of the business relationship and verifying the ultimate beneficial owners are key steps in the KYC process.
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Shakira
10 months ago
E is not the only factor to consider. Diving into C and D is crucial for a thorough assessment.
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Aretha
12 months ago
Yes, Jacki. It helps ensure transparency and mitigate risks related to hidden ownership.
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Jacki
12 months ago
I believe identifying and verifying the ultimate beneficial owners is crucial in the KYC process.
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Louvenia
1 year ago
Haha, self-declaration? What is this, the honor system? Definitely need to go beyond that for KYC. D and C are the way to go.
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Theresia
12 months ago
Yeah, self-declaration is not reliable at all. D is crucial for identifying and verifying the ultimate beneficial owners.
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Blossom
1 year ago
D and C seem like the obvious choices here. Can't have a proper KYC process without identifying the real owners and understanding the business purpose.
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Valentin
11 months ago
Absolutely, those two aspects are essential for a thorough KYC assessment. It's all about transparency and risk mitigation.
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Rhea
12 months ago
Agreed, without identifying the ultimate beneficial owners and understanding the business relationship, the KYC process would be incomplete.
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Fernanda
12 months ago
D and C are definitely key factors in assessing the KYC process. It's crucial to know who really owns the customer and the purpose of their business.
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Kenny
1 year ago
I agree with you, Aretha. It's important to understand the rationale behind the customer's activities.
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Aretha
1 year ago
I think we should observe the purpose and nature of the business relationship in the customer risk assessment.
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