WorksheetsAML Audit Quiz
Total questions: 30
Worksheet time: 15mins
What is the main purpose of an AML audit?
To prosecute financial criminals
To certify employees in AML regulations
To validate the effectiveness of AML controls
To replace regulatory inspections
Who usually conducts an internal AML audit?
Law enforcement
Internal audit function
Compliance department
External consultants
Which of the following triggers an AML audit?
Budget surplus
Ineffective internal controls
Low customer complaints
Increased product sales
External AML audits are often required when:
The organization has strong internal controls
There is no compliance officer
There is no internal audit function or lack of expertise
There are too many customer onboarding processes
In some jurisdictions, external AML audits are:
Optional
Done only by regulators
A legal or regulatory requirement
Replaced by internal testing
Internal auditors are accountable to:
Shareholders
Management
The public
Regulators
External auditors are accountable to:
Compliance team
Internal audit team
Shareholders
Employees
How often do internal auditors conduct audits?
Annually only
Throughout the year
Only when regulators demand
Once per department
What distinguishes internal from external AML auditors?
Their reporting lines
Their qualifications
Their knowledge of policies
Their use of IT systems
A full-scope audit evaluates:
Only customer due diligence
Only transaction monitoring
All aspects of the AML program
Only IT systems
A look-back audit typically focuses on:
Future compliance plans
Historical transactions and controls
Customer acquisition
AML training effectiveness
A horizontal audit reviews:
One function across several departments
All aspects of one department
Only external audit functions
One team’s training
A change-management audit assesses:
Compliance with HR rules
New software integration
Changes to the AML framework
Staff satisfaction
A limited-scope audit typically:
Reviews all functions
Focuses on selected areas
Involves multiple organizations
Covers all staff members
What happens during the planning phase of an AML audit?
Audit testing
Draft reporting
Scope and objectives are set
Remediation is implemented
During the fieldwork phase, auditors:
Report to the board
Prepare remediation plans
Test AML controls using samples
Close audit files
If audit risk assessment is found inadequate:
The audit is canceled
The audit scope is expanded
A different auditor is assigned
The report is sent early
During the reporting phase, the first document shared is:
Remedial action plan
Preliminary report
Compliance checklist
Final signed report
After the draft report, the next step is:
Stakeholder review
Regulator inspection
Final policy publication
Employee re-training
What is monitored after audit completion?
Team productivity
Audit cost
Progress of remedial action plan
Technology updates
Which of these is not typically reviewed in a full-scope AML audit?
Governance
CDD and EDD
Training
Product pricing
What is CDD?
Client Due Diligence
Central Data Distribution
Customer Due Diligence
Compliance and Data Division
EDD stands for:
Enhanced Data Division
Environmental Due Diligence
Enhanced Due Diligence
Evaluated Daily Data
Transaction monitoring is used to:
Detect unusual or suspicious activity
Check financial performance
Track customer preferences
Schedule audits
What supports the AML program from a technical perspective?
HR software
Related IT systems
Marketing tools
Procurement apps
Management information systems in AML audits are used to:
Train employees
Report data to management
Market products
File customer complaints
Record retention ensures:
Customer happiness
Availability of documentation
System speed
Data minimization
AML training should be:
Once at onboarding
Regular and updated
Done only by external vendors
Optional for senior staff
Currency Transaction Reports (CTR) are required for:
Low-risk clients
Loan approvals
Large cash transactions
Online purchases
Suspicious Activity Reports (SARs) are filed when:
A new customer joins
Unusual or suspicious activity is detected
Employees are promoted
Customers change addresses
