What is one of the outcomes of a well-executed planning phase in AML audits?

A comprehensive assessment of inherent risks is a key outcome of a well-executed planning phase in AML audits. This phase sets the foundation for the entire audit process by identifying and analyzing the specific risks associated with money laundering and terrorist financing that an organization might face. By doing this, auditors can tailor their approach and put in place targeted procedures to address those risks effectively.

Identifying inherent risks early allows the audit team to focus their resources on the areas that require the most attention, ensuring that all potential vulnerabilities are thoroughly evaluated. This diligent risk assessment not only enhances the effectiveness of the audit but also aids in compliance with regulatory expectations and improves the overall risk management strategies of the organization. This leads to more informed decision-making and ultimately strengthens the integrity of the AML program being audited.

Other options may not facilitate effective auditing processes. For example, increasing operational failures would undermine the audit's purpose, while a reduced workload and a streamlined process with no documentation fail to align with the thoroughness and accountability necessary in compliance audits.