A financial institution is auditing its correspondent banking relationships and their respective sanctions compliance programs. Which condition will merit a higher sample size assuming the correspondent banks have a moderate level of risk mitigation?

• A.A fluctuating customer base in an international environment
• B.A well-known customer base m a localized environment
• C.A customer base changing due to a merger in the domestic market
• D.A stable customer base in an international environment

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Which circumstance would impair an auditor's independence and objectivity?

• A.Attending internal meetings where key risk indicators are discussed
• B.Donating funds to a local chanty which relates to the organization being audited
• C.Working with staff to design and implement key controls
• D.Presenting at a local audit industry event where best practices are discussed

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The scoping and planning process of an AML audit of a bank is best guided by review of which document?

• A.Independent model validation and testing report of the bank's transaction surveillance systems
• B.Information technology security risk assessment of the bank's COD risk rating solution
• C.Report of independent audit conducted the previous year
• D.A document prepared to identify the inherent risk associated with a bank's products and services

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An organization creates a document for its audit committee listing the outstanding audit findings. The list has an executive management owner assigned to each finding, due dates for reporting management's responses and space for management to identity the actions to be taken. Which is a primary purpose of this document?

• A.Providing audit documentation of management responses
• B.Tracking completion of proposed recommendations
• C.Documenting audit team validation testing
• D.Testing resiliency of proposed recommendations

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Which set of activities describes the planning phase of an audit?

• A.Request data regarding financials, schedule planning meeting and perform sample testing
• B.Request the scheduling of preliminary discussions with management and request a walk-through of key processes
• C.Request organizational charts, assess data for sample testing and provide an initial report
• D.Request management overview of the organization conduct analytical review of processes and issue findings

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