An audit finding can be closed when:

• A. all necessary evidence is collected and analyzed.
• B. the follow-up actions are completed.
• C. the final audit report is ready for delivery.
• D. the underlying risk is reassessed and mitigated.

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. Review procedures for accepting commission sales and determining the buyer's source of funds on a best effort basis
• C. Commission an external investigator to perform enhanced due diligence on the buyer.
• D. Perform enhanced due diligence on the seller and buyer and update client records with findings

Which does a financial institution (FI) need to do when outsourcing an independent audit?

• A. Investigate whether the audit firm has conducted prior audits with the Fl.
• B. Choose an audit firm based on price consideration and geographic location.
• C. Ensure that the scope of the audit and the experience of the auditors match the needs of the Fl.
• D. Select an audit firm based on recommendations from the AMI compliance officer.

Which KYC-related finding poses the most risk to the organization?

• A. Backlogs and delays in maintaining client files in accordance with the organization's policy
• B. KYC requirements being considered a low priority not designed into business processes and implemented after product launch
• C. KYC processes not being integrated into the business and associated application systems
• D. Sanctions fists that are updated on a periodic basis following an annual risk assessment

What conclusion should the auditor make regarding AML training for outsourced AML providers?

• A. The approach outlined by the Dank is appropriate as the Dank can rely on a professional service provider to deliver the AML training program for the Dank s staff.
• B. The approach outlined by the Dank is deficient, as the service providers are not pan of the Dank s AML training during its staff onboarding.
• C. The approach outlined by the Dank is deficient, as it does not provide controls for the Dank to verify training delivered by outsourced providers to the bank's staff is appropriate.
• D. The approach outlined by the bank Is appropriate as it considers practical issues such as time zone differences and availability of both classroom and online sessions.