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

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 16
Topic #: 2

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

ASelf-declaration or Beneficial ownership should not be accepted as it is not adequate.

BOverseas shareholders not involved in the customer's dally operations are not beneficial owners.

CThe purpose and intended nature of the business relationship were not reviewed m the assessment.

DThe ultimate beneficial owners of the customer need to be Identified and verified.

EIf 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.

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Suggested Answer: C, D

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

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27 days ago

I think we should observe the purpose and nature of the business relationship in the customer risk assessment.

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