CBA Banking Operations Audit 4

Question 1

When auditing a bank's foreign currency exchange operations, the auditor should PRIMARILY focus on whether:

Accepted Answer

Positions are marked to market daily and exposure limits are monitored

Answer

Daily mark-to-market and adherence to position limits are the key controls for managing foreign exchange risk in trading operations.

Question 2

An auditor reviewing the bank's check processing operations should be MOST concerned if:

Accepted Answer

Image capture occurs before proof balancing is complete

Answer

Capturing check images before balancing undermines the proof process and can allow errors or fraud to go undetected.

Question 3

Under the Bank Secrecy Act, a Currency Transaction Report (CTR) must be filed for cash transactions exceeding:

Accepted Answer

$10,000 in a single day

Answer

The BSA requires a CTR for any cash transaction or series of related transactions exceeding $10,000 in a single business day.

Question 4

A bank auditor finds that the operations center processes end-of-day batch jobs without a documented run book or operator instructions. The PRIMARY concern is:

Accepted Answer

Inability to recover consistently from processing errors or abends

Answer

Without documented run books, operators cannot consistently restart or recover failed jobs, creating operational continuity risk.

Question 5

Which of the following best describes 'structured transactions' (structuring) as it relates to BSA compliance audits?

Accepted Answer

Breaking large cash transactions into smaller amounts to evade CTR reporting

Answer

Structuring is the illegal practice of breaking transactions into amounts below $10,000 specifically to avoid Currency Transaction Report filing.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Banking Operations Audit 4