Discuss Acams Advanced-CAMS-Audit Exam Topic 3 Question 27

Which best explains why the auditor rates the audit finding on sanction screening severity high?

AThe efficiency of the sanction screening tool is not properly tuned due to the wrong sanctions lists.

BThe finding is on a different audit topic than the KYC related findings.

CThe tool might miss potential sanction violations given the long intervals before the sanctions lists are updated.

DThe organization might have reported a sanction breach that is not a current sanction violation.
Severity Justification:
Infrequent updates of sanction lists create significant risks of missing sanctioned entities, increasing legal, financial, and reputational risks for the institution.
FATF Recommendations emphasize the need for timely and accurate sanctions screening to prevent facilitation of sanctioned transactions.
Critical Evidence:
A delayed update to sanction lists is cited as a key failure point in regulatory penalties and compliance audits.

Suggested Answer: C

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26 comments · newest first

Verda 2 months ago

But C really emphasizes the consequences of outdated lists. That's severe!

Estrella 2 months ago

A is also valid. If the tool isn't tuned right, it’s a big problem.

Anabel 2 months ago

Agreed, C highlights the risk of missing violations. It's crucial.

Lennie 2 months ago

I think C is the best choice. Long intervals can really cause issues.

Margarita 3 months ago

D seems off. Reporting a breach doesn't mean it's a current issue.

Eleonora 3 months ago

A is also valid. Wrong lists can really mess up the screening.

Jettie 3 months ago

Agreed! Missing updates can lead to serious violations.

Alyce 3 months ago

I think C is the best choice. Long intervals are risky.

Aron 3 months ago

But C really emphasizes the impact of infrequent updates. That's critical.

Scarlet 4 months ago

A is also a strong contender. Wrong lists can lead to serious problems.

Stephaine 4 months ago

Agreed, C highlights the risk of missing violations.

Bronwyn 4 months ago

I think C is the best choice. Long intervals can really cause issues.

Paris 4 months ago

I doubt the organization would report a breach if it wasn't serious.

Makeda 4 months ago

A different audit topic shouldn't matter, it's all connected!

Felix 6 months ago

Wait, are they really not updating those lists often enough?

Lucina 6 months ago

Totally agree, missing sanctions can be a huge risk.

Celia 6 months ago

The tool's updates are way too slow!

Kenneth 6 months ago

I think they should focus more on the KYC findings instead.

Lura 6 months ago

That’s just one part of the audit, though, right?

Colene 7 months ago

Wait, are they really not updating those lists regularly?

Bettyann 7 months ago

I totally agree, missing updates is a big deal!

Whitney 7 months ago

Sounds like the tool is outdated.

Albina 7 months ago

I’m a bit confused about the differences between the options, but I recall that missing sanctions can lead to serious penalties, so maybe C is right?

Dino 7 months ago

I think we practiced a question similar to this where the focus was on the implications of not updating lists. It feels like C is the strongest choice here.

Bambi 7 months ago

I'm not entirely sure, but I feel like the severity rating might relate more to the efficiency of the tool itself, which could point to option A.

James 8 months ago

I remember discussing how outdated sanctions lists can really increase risks for organizations, so I think option C makes sense.

Acams Advanced-CAMS-Audit Exam - Topic 3 Question 27 Discussion