Which of the following is true about suspicious activity reports in a full-scope audit?

In the context of a full-scope audit, examining suspicious activity reports for adequate documentation is crucial. These reports can provide essential insights into potential risks and compliance issues within an organization. Adequate documentation helps auditors assess the effectiveness of a firm's anti-money laundering (AML) controls and determine whether suspicious activities are being properly reported and addressed.

The audit process heavily relies on the thorough evaluation of these reports because they can indicate areas where vigilance is necessary and where systems may need improvement. By ensuring that the documentation is complete and accurate, auditors can offer valuable recommendations and insights to enhance the overall compliance framework of the organization.

To clarify, suspicious activity reports are not optional in the audit process; they are a critical component. They cannot be solely relied upon for compliance checks as they must be part of a broader examination of internal controls and other compliance measures. Finally, they are indeed relevant to risk assessment, as they provide indicators of potential risks that the organization must manage.