Discuss Acams Advanced-CAMS-Audit Exam Topic 4 Question 30

When sample testing client transaction records, the auditor finds that a client offered to sell a piece of art on a commission basis. A sale was completed and the purchase price was remitted to the client with less commission. What further investigation should the auditor undertake?

AUpdate the national art registry with the sale price of the art work so that art-based money laundering can be detected.

BPerform enhanced due diligence on the seller and buyer and update client records with findings

CReview procedures for accepting commission sales and determining the buyer's source of funds on a best effort basis

DCommission an external investigator to perform enhanced due diligence on the buyer.
Enhanced due diligence is necessary to identify potential risks associated with high-value transactions such as art sales, a known method for money laundering.
CAMS-Audit guidelines recommend updating client records with findings to maintain transparency and prepare for regulatory scrutiny.
This approach ensures compliance with due diligence requirements and mitigates reputational and financial crime risks.

Suggested Answer: B

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28 comments · newest first

Dianne 2 days ago

Right, we can't overlook potential risks.

Beckie 7 days ago

I just want to ensure compliance. No room for errors.

Toshia 12 days ago

Exactly! Transparency is key in these cases.

Leatha 17 days ago

True, but it could be costly. B covers both seller and buyer.

Tayna 23 days ago

D sounds good for high-value transactions. External help is valuable.

Dianne 28 days ago

But C might not be enough. We need deeper insights.

Beckie 1 month ago

Option C could work too. Reviewing procedures is important.

Toshia 1 month ago

I agree, B makes sense. We need to know the buyer's background.

Leatha 1 month ago

I think option B is the best choice. Enhanced due diligence is crucial.

Tyisha 2 months ago

I feel confident with B as the choice.

Kris 2 months ago

Right, B ensures compliance and reduces risks.

Laquanda 2 months ago

A is good, but not as thorough as B.

Raul 2 months ago

True, but updating the national art registry is also important.

Tyisha 2 months ago

Plus, it helps with regulatory scrutiny.

Kris 2 months ago

Exactly, B covers all bases. Transparency is key.

Laquanda 3 months ago

But C might not be enough. We need to dig deeper.

Raul 3 months ago

Option C could work too. Reviewing procedures is important.

Tyisha 3 months ago

I agree, B makes sense. We need to know the seller and buyer better.

Kris 3 months ago

I think option B is the best choice. Enhanced due diligence is crucial.

Domitila 3 months ago

Why not just hire an external investigator for peace of mind?

Leana 4 months ago

Definitely review those commission procedures!

Dortha 4 months ago

Really? Do we even know if this art sale was legit?

Jaclyn 4 months ago

I think updating the national art registry is also important.

Felicidad 4 months ago

Sounds like enhanced due diligence is a must here!

Willow 4 months ago

I’m leaning towards option B too, but I wonder if updating the national art registry, as mentioned in A, could also play a role in detecting money laundering.

Alease 6 months ago

I feel like we practiced a similar question where we had to assess risks in art transactions. I think option D could be relevant, but it seems a bit extreme to hire an external investigator.

Rosita 6 months ago

I’m not entirely sure, but I think reviewing procedures for commission sales, like in option C, might also be important to ensure compliance.

Hoa 6 months ago

I remember we discussed the importance of enhanced due diligence in high-value transactions, especially with art sales. It seems like B could be the right choice.

Acams Advanced-CAMS-Audit Exam - Topic 4 Question 30 Discussion