How do AML audits differ from standard financial audits?

The correct answer emphasizes that AML audits are specifically designed to ensure compliance with regulations aimed at preventing financial crimes such as money laundering and terrorism financing. This focus distinguishes them from standard financial audits, which primarily evaluate the accuracy of financial statements and the overall financial health of an organization.

AML audits require a thorough understanding of the regulatory landscape, including specific laws and guidelines that govern financial activities. They examine an organization’s policies, procedures, and controls related to identifying and mitigating risks associated with financial crimes, evaluating the effectiveness of the institution’s anti-money laundering programs.

In contrast, while standard financial audits can touch on compliance aspects, their main objective is to provide assurance regarding the financial statements' fairness. This difference in focus underscores the specialized nature of AML audits and the necessity for auditors to possess knowledge specific to financial crimes and related regulations.