ACAMS Updated Advanced-CAMS-Audit Exam Questions and Answers by goldie

Correspondent banking relationships with banks in high-risk jurisdictions are a key risk indicator, as these relationships often pose greater AML/CFT risks due to regulatory or operational deficiencies in those jurisdictions​​​.

Audits are primarily designed to evaluate the adequacy and effectiveness of controls within a risk management framework. This includes assessing whether the controls are properly designed and functioning to mitigate identified risks effectively.

CAMS-Audit guidance highlights the critical role of controls in ensuring compliance with AML/CFT regulations and managing operational risks​​.

Appropriateness of Judgmental Sampling:

Judgmental sampling is optimal when variability in report content and complexity necessitates the auditor’s discretion to select the most informative samples​​.

Guideline Support:

Basel and FATF emphasize auditor judgment in situations requiring qualitative evaluation of governance reports​​.

These answers are aligned with best practices and principles outlined in FATF recommendations and the context of AML/CFT risk management and training standards. If further detailed references are required, feel free to ask!