CBA Banking Operations Audit 5

Question 1

A bank auditor is reviewing controls over the bank's correspondent banking relationships. Which risk is UNIQUE to correspondent banking compared to retail banking?

Accepted Answer

Nested relationships that obscure the identity of underlying customers

Answer

Nested correspondent relationships allow respondent banks to provide services to sub-correspondents whose customers remain unknown to the U.S. bank.

Question 2

When evaluating the adequacy of a bank's internal audit coverage for operations, the auditor-in-charge should PRIMARILY consider:

Accepted Answer

Risk-based audit frequency aligned with the risk rating of each operational area

Answer

A risk-based audit plan allocates coverage based on the inherent and residual risk level of each operational area, not fixed schedules.

Question 3

An auditor reviewing the bank's wire transfer department finds that callbacks are only performed for wires exceeding $1 million. Wires between $100,000 and $999,999 are released without verbal confirmation. This policy gap MOST directly exposes the bank to:

Accepted Answer

Business email compromise (BEC) fraud losses

Answer

BEC fraud typically targets amounts just below high-value thresholds where callback controls are absent.

Question 4

A bank auditor identifies that the operations division uses spreadsheets maintained by a single employee to calculate daily fee income. The BEST control recommendation is to:

Accepted Answer

Migrate fee calculations to a validated, system-based process with access controls

Answer

System-based calculations with access controls eliminate single-point-of-failure and manipulation risks inherent in end-user-maintained spreadsheets.

Question 5

During an audit of the bank's remote deposit capture (RDC) program, an auditor should verify that customer agreements include provisions for:

Accepted Answer

Image quality standards, deposit limits, and duplicate detection responsibilities

Answer

RDC agreements must define image standards, customer deposit limits, and who bears responsibility for duplicate presentment issues.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Banking Operations Audit 5