Question 1

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

Options :

A : Request data regarding financials, schedule planning meeting and perform sample testing

B : Request the scheduling of preliminary discussions with management and request a walk-through of key processes

C : Request organizational charts, assess data for sample testing and provide an initial report

D : Request management overview of the organization conduct analytical review of processes and issue findings

Answer: B

Question 2

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?

Options :

A : Model validation

B : Audit continuous monitoring

C : Data validation

D : Regulatory approvals

Answer: A

Question 3

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):

Options :

A : general license authorizing a transaction for an entity, and a specific license authorizing a transaction for an individual.

B : internal control test.

C : sustainability assessment.

D : root cause analysis

Answer: D

Question 4

A financial institution's (FI) risk assessment identified a lack of specific policies and procedures for existing privately-owned automated teller machine (ATM) customers. What would an auditor review to assess whether this risk has been addressed?

Options :

A : Prepare to audit a sample of the FI's privately-owned ATM customers.

B : Draft policies and procedures for the FI's privately-owned ATM customers.

C : Request data on the volume and value of transactions through the privately-owned ATM customers.

D : Review the current risk assessment to determine the existence of privately-owned ATM customers.

Answer: D

Question 5

What factors are considered tor conducting an external audit and assurance review? (Select Three.)

Options :

A : Type of reporting format

B : Budget available for the review

C : Purpose of the review

D : Type of risk assessment needed

E : Users of the external report

F : Information that will be required

Answer: C,D,E

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