Advanced-CAMS-Audit Advanced CAMS-Audit Certification Exam Free Demo Questions – Try Before You Buy

Question 1

Which recommendation should the audit team provide to address transaction monitoring (TM) issues?

A

Switch off those detection scenarios that are producing too many false positives.

B

Apply the same thresholds across all client types to ensure alignment of risk coverage.

C

Perform a coverage assessment of the current suite of TM detection scenarios against the bank's money laundering and terrorist financing risks.

D

Provide training for first-line staff on how to review and disposition TM alerts.

Correct Answer: C

Explanation:

Importance of Coverage Assessment: Coverage assessment ensures that the TM scenarios address the full spectrum of identified money laundering (ML) and terrorist financing (TF) risks relevant to the organization. This aligns with FATF Recommendations on risk-based approaches and the effectiveness of transaction monitoring systems. Key Reference Justification: Basel Committee guidelines stress that financial institutions must regularly review their transaction monitoring coverage to ensure alignment with the risk landscape.

Question 2

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?

A

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

B

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

C

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

D

Commission an external investigator to perform enhanced due diligence on the buyer.

Correct Answer: B

Explanation:

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.

Question 3

When testing the operational effectiveness of an institution's customer risk rating model an auditor finds that the risk rating is not in accordance with the model specification in some cases. After interviewing developers and officers, the auditor learns the specification document is inaccurate and has not been updated in a timely manner. Which are appropriate corrective action plans'? (Select Two.)

A

Alert the person in charge of releasing the model that me release must comply with the specifications.

B

Check periodically if released rules are operating as per the specifications.

C

Set up a checkpoint before release to make sure that the release is in accordance with the specifications.

D

Tram KYC personnel to recognize errors in the customer risk rating model.

E

Report this matter to the board of directors.

Correct Answer: B, C

Explanation:

B. Periodic Checks : Regular monitoring ensures that implemented rules align with updated specifications and are functioning as intended, reducing the risk of deviation from compliance standards ints Before Release**: Establishing validation checkpoints ensures that all releases comply with documented specifications, mitigating risks of errors in the risk rating model

Demo Acams Advanced-CAMS-Audit Exam Questions

Which recommendation should the audit team provide to address transaction monitoring (TM) issues?

Switch off those detection scenarios that are producing too many false positives.

Apply the same thresholds across all client types to ensure alignment of risk coverage.

Perform a coverage assessment of the current suite of TM detection scenarios against the bank's money laundering and terrorist financing risks.

Provide training for first-line staff on how to review and disposition TM alerts.

Correct Answer: C

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?

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

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

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

Commission an external investigator to perform enhanced due diligence on the buyer.

Correct Answer: B

Alert the person in charge of releasing the model that me release must comply with the specifications.

Check periodically if released rules are operating as per the specifications.

Set up a checkpoint before release to make sure that the release is in accordance with the specifications.

Tram KYC personnel to recognize errors in the customer risk rating model.

Report this matter to the board of directors.

Correct Answer: B, C

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