What does the term 'audit methodology' refer to in an AML audit policy?

The term 'audit methodology' in an AML audit policy encompasses the specific procedures and techniques utilized to conduct the audit effectively. This includes the systematic approach that auditors adopt to assess compliance with anti-money laundering laws and regulations, identify potential risks, and evaluate the effectiveness of the organization's controls.

An audit methodology provides a framework that guides auditors in planning, executing, and documenting the audit process. It often includes the use of various tools, data collection methods, sampling techniques, and analytical procedures that ensure a standardized and thorough examination of financial activities. This structured approach is vital for enhancing the reliability and consistency of audit results, enabling auditors to provide actionable insights and recommendations based on their findings.

The other options touch upon different aspects relevant to audits but do not define 'audit methodology.' For instance, ethical standards relate to the principles governing auditor conduct, criteria for selecting team members address the qualifications and attributes needed for the audit team, and the impact of audit findings pertains to the consequences that results may have on an organization but are not indicative of the methodological approach taken during the audit process.