An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts are cleared. Audit sampling identified potentially suspicious activity that was cleared as not suspicious. Management accepts the audit finding and develops a remediation plan.
What is the role of the auditor during the correction phase?
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A. B. C. D.B
In the correction phase of an anti-money laundering audit, the auditor plays a critical role in ensuring that the identified weaknesses are effectively addressed by the management. The auditor's primary responsibility is to validate the successful remediation of the issue once management indicates that the issue has been resolved.
Option A, "Directing the remediation of the deficiency in a timely manner," is not a recommended role for the auditor. While the auditor may provide guidance and recommendations to management on how to correct the deficiency, it is ultimately the responsibility of management to design and implement the remediation plan.
Option B, "Developing procedures to provide sufficient risk-based documentation for clearing alerts," is also not the role of the auditor during the correction phase. The auditor may provide recommendations for enhancing the transaction monitoring process, but the design and implementation of new procedures are the responsibility of management.
Option C, "Providing training to the alert clearing department on the importance of effective alert clearing," may be part of the remediation plan developed by management. However, the training itself is not the responsibility of the auditor. The auditor may provide recommendations for improving the training program, but the implementation of the training is the responsibility of management.
Therefore, option D, "Validating the successful remediation of the issue once management indicates the issue is resolved," is the correct answer. During the validation phase, the auditor will perform testing to confirm that the remediation plan has been effectively implemented and that the issue has been resolved. The auditor will review documentation, conduct interviews, and perform testing to ensure that the issue has been corrected and that the organization is now in compliance with relevant anti-money laundering regulations and guidelines.