An audit manager identifies that a financial institution (Fl) has not produced a business-level risk assessment in accordance with policy. The senior manager of the Fl assures that assessing risk at the individual client level and aggregating the data is an acceptable approach. How should the audit manager proceed?

• A.Issue a finding that requires the completion of a business-level risk assessment.
• B.Accept the risk conclusions provided by the senior manager.
• C.Test the accuracy of the mathematical aggregation of the risk assessments.
• D.Discuss with the senior manager to establish the risk appetite.

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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.

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If a final audit communication contains a significant error, the chief audit executive must:

• A.recall the audit report assess the error and resubmit the correct one.
• B.report the error to the local AML regulator.
• C.reevaluate the item(s) and resubmit findings for discussion on factualaccuracy.
• D.tell those who received the communication of the error and corrections.

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The mam characteristics of an AML program testing are:

• A.tailored and risk-based.
• B.standard and focused.
• C.innovative and evaluative.
• D.remedial and interdependent.

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Which products/services increase the risk level for money laundering for XYZ Bank?

• A.Payable through accounts
• B.International fund transfers
• C.Letters of credit
• D.Foreign exchange services

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