What do 'auditable units' refer to in the context of AML audits?

Auditable units refer to specific segments within broader auditable entities, which allows for a more detailed approach to audits in the context of Anti-Money Laundering (AML). By focusing on these specific segments, auditors can conduct in-depth examinations of particular processes or areas that may have distinct risks, compliance requirements, or operational challenges. This granular approach enables auditors to identify weaknesses, ensure adherence to regulations, and evaluate the effectiveness of AML controls within those specific segments.

In the broader context of AML auditing, auditable units can relate to a particular department, product line, or geographic location within a larger organization. This helps organizations in targeting areas that may require more oversight or scrutiny due to their nature or the volume of transactions handled. Focusing on these specific segments aids in risk assessment and ensures that the audit process is thorough and targeted, contributing to stronger overall compliance and management of anti-money laundering efforts.

The other options do not accurately reflect the concept of auditable units. While individual organizations could be audited as a whole, they encompass more than just the specific segments referred to in this context. High-risk financial transactions are certainly a focus within audits but do not define the structure of auditable units themselves. Comprehensive audit reports are outcomes of the audit processes rather than