What action should AML auditors take if the audit risk assessment is deemed inadequate?

When the audit risk assessment is deemed inadequate, the most appropriate action for AML auditors is to expand the audit scope. An inadequate risk assessment indicates that there may be significant compliance risks or deficiencies that require further examination. Expanding the scope allows the auditors to delve deeper into areas identified as high-risk or under-evaluated, ensuring comprehensive coverage of the audit objectives.

By broadening the audit's focus, auditors can gather more data, analyze additional transactions, and evaluate further controls or processes that may not have been adequately reviewed initially. This approach facilitates a more thorough assessment of the organization's compliance with anti-money laundering regulations and contributes to a more reliable and effective audit outcome.

Other choices, such as limiting the scope or canceling the audit, would not address the underlying concerns raised by an inadequate risk assessment. Revising the audit schedule might allow for more time to conduct a proper audit but would not inherently improve the audit's effectiveness without changing its scope to ensure thoroughness in addressing identified risks.