What should audit managers confirm as part of the AML audit risk assessment?

In the context of an AML audit risk assessment, it is essential for audit managers to confirm the inventory of auditable entities and units. This step is vital as it ensures that all relevant areas of the organization that may pose a risk of money laundering are identified and evaluated. This inventory acts as a foundational element for the risk assessment process, allowing auditors to prioritize their efforts effectively based on the potential risks associated with different entities.

Having a comprehensive inventory enables audit teams to assess each unit’s operations, compliance with regulations, and the effectiveness of existing controls against money laundering risks. By confirming the inventory, audit managers can ensure that the audit process is thorough and that no significant areas are overlooked, which could result in compliance gaps or vulnerabilities to illicit activities.

In contrast, while budget allocation for the audit department, staff training levels in compliance, and evaluation of technological infrastructure are important aspects for overall audit management and effectiveness, they do not directly address the identification and assessment of risks related to specific entities. These aspects, though essential for supporting an effective AML audit environment, relate more to resource management and preparedness rather than the core focus of the initial risk assessment process.