Correct Answer:
C
Understanding the Vertical Approach:
A vertical audit focuses on reviewing the entire process or function within a single area or
department, such as testing KYC files for compliance and effectiveness in a specific customer group
or business line.
Application in AML Examinations:
Vertical audits are particularly useful for examining KYC processes as they allow auditors to trace the
end-to-end workflow, from customer onboarding to risk assessment and ongoing monitoring.
Alignment with Advanced CAMS-Audit Guidelines:
The vertical approach provides detailed insights into compliance gaps within the KYC function,
helping auditors identify root causes and systemic issues, which is emphasized in CAMS-Audit
training.
