EMT Practice Test

1. Question Content...

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Question1: Findings from a financial institution's (Fl's) regulatory examination suggest that several unidentified risks pose a serious threat. The Fl identifies the risks and implements a set of controls to mitigate those risks.
Which type of risk considers the controls' effectiveness?

Question2: Which should the external auditor recommend to ensure that the institution did not facilitate transactions involving a sanctioned person?

Question3: The scoping and planning process of an AML audit of a bank is best guided by review of which document?

Question4: During the interview, the local director informs the audit manager that no internal or regulatory audits have occurred since the local director's appointment The local director relies on a locally-approved independent external review of Company A performed 12 months ago by a local firm How should the audit manager respond?

Question5: When assessing the effectiveness of a transaction monitoring system, which indicators require active monitoring by the auditor or compliance'? (Select Two.)

Question6: 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 andofficers,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.)

Question7: Which is a true statement about the computer-assisted audit tool (CAAT)?

Question8: Which scenarios should be used to monitor for potential elder abuse? (Select Two.)

Question9: A retail banking small and medium-sized enterprise (SME) customer launches a charity and requests a Corporate-SME account to receive donations and make disbursements. Which scenarios would most likely identify activity related to a charity account?(Select Two.)

Question10: Which products/services increase the risk level for money laundering for XYZ Bank?

Question11: A financial institution utilizes an automated daily validation report to validate the accuracy of the data flowing into its monitoring software. An auditor is responsible for testing the data used to create the report. This is an example of testing which type of effectiveness?

Question12: The mam characteristics of an AML program testing are:

Question13: Which conclusion should the auditor make regarding the staff attendance of the periodic AML training program organized by the bank?

Question14: Which are key responsibilities of internal auditors? (Select Two.)

Question15: Which set of activities describes the planning phase of an audit?

Question16: When evaluating an AML training program tor CFT functions the auditor should verify that:

Question17: 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?

Question18: Which are objectives of the issue confirmation step in the audit issue management process? (Select Two.)

Question19: When reviewing an entity's sanctions compliance program, the auditor should ensure who is exempt from the Office of Foreign Assets Control's regulations?

Question20: While reviewing a sample of trade financing documents in a financial institution, an auditor notes that there were instances of potential overvaluation and undervaluation of goods. The auditor intends to check if these were detected and escalated. Which is a reason for such overvaluation and undervaluation?

Question21: An audit determines that an important control is not being performed. The operational manager responds to the audit comment stating that they do not have adequate resources in the department to accomplish this task.
The audit item discussion between the auditor and the operational manager is a(n):

Question22: The auditor finds that thecustomer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year. The auditor's observations should Include that the CRA should:

Question23: Which is the most significant risk associated with KYC requirements being considered a low priority not designed into processes and subsequently implemented after the products are already launched?

Question24: Which should the auditor recommend to management in terms of the client's risk rating procedures?

Question25: Audits are designed to provide assurance that what key aspect of risk management framework is adequately designed and functioning effectively?

Question26: During the auditing process the auditor finds that the entity never updates the customers risk assessment.
Which remediation actions should the auditor suggest? (Select Two.)

Question27: When assessing the KYC process which should an auditor observe from the customer risk assessment? (Select Two)

Question28: What model test verifies that alerts indicative of potentially suspicious activity are not missed due to threshold settings?

Question29: An auditor should present exceptions identified during testing to the auditee after.

Question30: Which KYC-related finding poses the most risk to the organization?

Question31: Which KYC-related finding poses the most risk to the organization?

Question32: Following completion of testing and tuning of the parameters and thresholds of the transaction monitoring model which final step should the team recommend as necessary to verify effective model functioning?

Question33: Which task should an auditor complete first when preparing to audit the client risk scoring methodology?

Question34: During a sanction review, an auditor notes that several of the bank's large corporate clients continue to route transactions through the bank to certain Office of Foreign AssetsControl (OFAC)-sanctioned countries.The head of corporate clients stated that these transactions were executed under the OFAC license.What should an auditor know to distinguish between an OFAC general license and a specific license?

Question35: Which recommendation should the audit team provide to address transaction monitoring (TM) issues?

Question36: What should an auditor verify when auditing areas with previously identified AMI deficiencies?

Question37: Which finding indicates issues that could result in clients being subject to incorrect scenarios and thresholds?

Question38: When reviewing changes to the organizational structure of an AML department, which factor should an auditor assess?