Acams Advanced-CAMS-Audit Exam - Topic 2 Question 4 Discussion

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

Question #: 4
Topic #: 2

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? (Select Two.)

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 .

Show Suggested Answer

Suggested Answer: A, E

by Yuonne at Jan 12, 2025, 11:07 AM

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Vallie

5 months ago

Scenario 7 is crucial for compliance, can't overlook that!

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Erick

5 months ago

Wait, are we really expecting charities to follow all those rules?

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Lucina

5 months ago

Not sure about Scenario 7, seems a bit vague.

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Reita

6 months ago

I agree, large deposits are a huge red flag!

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Rupert

6 months ago

Scenario 1 definitely makes sense for charity accounts.

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Lisbeth

6 months ago

I remember discussing how large withdrawals could be a red flag, so Scenario 1 makes sense. But I'm a bit confused about the other scenarios and which ones to pick.

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Lauran

6 months ago

I feel like Scenario 4 might also be a good choice, but I can't recall the specifics. I hope I remember the key points from our last review session.

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Karon

7 months ago

I'm not entirely sure about Scenario 7, but it seems to relate to compliance, which is important for non-profits. I remember a practice question that focused on AML standards.

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Francesco

7 months ago

I think Scenario 1 is definitely relevant since it talks about unusual deposits, which could indicate suspicious activity for a charity account.

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Truman

7 months ago

This question is testing our understanding of charity account monitoring. I think the key is to look for anything out of the ordinary, like unusual transaction activity or discrepancies between the account usage and the stated purpose. Gotta stay vigilant!

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Youlanda

7 months ago

Okay, I've got this. Scenario 1 and Scenario 7 are the clear winners here. Large, unexplained deposits/withdrawals and inconsistencies with the stated purpose are classic red flags for potential issues with a charity account. I'll make sure to select those two.

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Devorah

7 months ago

Hmm, I'm a bit unsure about this one. I'll need to carefully read through the scenarios and think about which ones would be most relevant for a charity account. Gotta make sure I don't miss anything important.

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Carlene

7 months ago

This question seems straightforward - we need to identify the scenarios that would most likely indicate activity related to a charity account. I'll focus on looking for unusual transactions and inconsistencies with the stated purpose.

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Penney

1 year ago

Personally, I'm torn between A and E. I mean, who doesn't love a good 'Exads' reference? But in all seriousness, I think the key is looking for those red flags of suspicious activity.

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Jacob

1 year ago

Yes, it's important to ensure adherence to AML standards for NPOs.

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Della

1 year ago

I agree, looking out for unusual activity is crucial in charity accounts.

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Janessa

1 year ago

Haha, I bet the exam writers threw in scenario E just to see if anyone would actually pick that. I mean, 'Exads'? What even is that?

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Yasuko

1 year ago

Yeah, I agree. It's probably there to throw people off.

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Carin

1 year ago

I know, right? Scenario E seems like a trick answer.

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Frederica

1 year ago

I also believe that scenarios 1 and 7 are the best options. They both focus on detecting suspicious activity in charity-related accounts.

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Avery

1 year ago

I agree with you, Vonda. Scenario 1 looks for unusual activity like large deposits or withdrawals, while scenario 7 checks for inconsistencies with the stated purpose.

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Olga

1 year ago

I disagree, I think B and D are the better options. Scenario 4 and 6 both seem to focus on monitoring unusual activity and ensuring AML compliance, which is crucial for charity accounts.

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Antonio

1 year ago

So, it seems like a combination of Scenario 4, 6, 1, and 7 would be ideal for managing a charity account.

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Antonio

1 year ago

Scenario 1 and 7 are also important for detecting red flags and inconsistencies in charity-related accounts.

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Jessenia

1 year ago

I agree, Scenario 6 also focuses on ensuring AML compliance, which is crucial for charity accounts.

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Wava

1 year ago

I think Scenario 4 is important for monitoring unusual activity in charity accounts.

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Vonda

1 year ago

I think scenarios 1 and 7 are the most likely to identify activity related to a charity account.

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Rasheeda

1 year ago

I'm pretty sure the correct answer is A and C. Large, unexplained deposits and withdrawals are definitely red flags for charity accounts, and scenario 7 helps ensure the account is being used for its intended purpose.

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