AAA Regulation, money laundering and laws

Informing a person that a report has been made about their suspected money laundering, in a way that might prejudice an investigation, is known as:

• 1 Disclosure
• 2 Customer due diligence
• 3 Whistleblowing
• 4 Tipping off

An auditor suspects that a client is laundering money. The auditor should:

• 1 Resign without telling anyone
• 2 Ignore it if it is not material
• 3 Report to the firm's nominated officer and not tip off the client
• 4 Tell the client's management immediately

Responsibility for compliance with laws and regulations rests with:

• 1 Management, with oversight by those charged with governance
• 2 The internal auditor only
• 3 The external auditor
• 4 The regulator

If an auditor identifies suspected non-compliance with law that has a material effect, the auditor should first:

• 1 Resign immediately
• 2 Discuss it with management and those charged with governance
• 3 Ignore it
• 4 Report it to the press

Which feature is typical of the audit of a public interest entity compared with other entities?

• 1 No need for a review
• 2 Stricter requirements on rotation and non-audit services, and key audit matters in the report
• 3 Lower materiality
• 4 No requirement for independence

A professional's duty of care in negligence requires the claimant to show:

• 1 A duty of care, a breach of it and loss caused by the breach
• 2 Only that the auditor gave an opinion
• 3 Only a loss
• 4 That the audit fee was high

A firm can reduce its exposure to liability claims by:

• 1 Avoiding documentation
• 2 Ignoring risk
• 3 Quality control, clear engagement letters and professional indemnity insurance
• 4 Reducing the scope of the audit without telling anyone