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CAMS · Question #415

CAMS Question #415: Real Exam Question with Answer & Explanation

The correct answer is D. Validating the successful remediation of the issue once management indicates the issue is. The audit function should report to the audit committee of the board of directors (or similar oversight body) and independently evaluate the risk management and controls of the bank through periodic assessments, including the adequacy of the bank's controls to mitigate the identi

Question

An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts are cleared. Audit sampling identified potentially suspicious activity that was cleared as not suspicious. Management accepts the audit finding and develops a remediation plan. What is the role of the auditor during the correction phase?

Options

  • ADirecting the remediation of the deficiency in a timely manner
  • BDeveloping procedures to provide sufficient risk-based documentation for clearing alerts
  • CProviding training to the alert clearing department on the importance of effective alert clearing
  • DValidating the successful remediation of the issue once management indicates the issue is

Explanation

The audit function should report to the audit committee of the board of directors (or similar oversight body) and independently evaluate the risk management and controls of the bank through periodic assessments, including the adequacy of the bank's controls to mitigate the identified risks, the effectiveness of the bank's staff's execution of the controls, the effectiveness of the compliance oversight and quality controls and the effectiveness of the training.

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