CCEP: Set 3
An organization has just accepted a new business line with plants in Germany and France. The CEO has asked the compliance and ethics
... [Show More] professional (CEP) to evaluate the compliance program to determine the impact of this change. Which of the following should the CEP consider when evaluating the company's compliance hotline?
A. Foreign Corrupt Practices Act
B. EU Privacy Directive
C. OECD Convention on Bribery
D. Bank Secrecy Act [Correct Ans: - B. EU Privacy Directive
The audit committee has asked the compliance and ethics professional (CEP) to include a review of the commissions for the sales force in the action plan for the next fiscal year. The risk assessment did not show this as a significant risk area. Which of the following actions should the CEP do FIRST?
A. Revise the risk assessment to increase the significance of the concern.
B. Gather information to determine the priority of this risk. C. Add the commission concern as the first risk area to be addressed.
D. Ask the CEO to present the issue to the full board of directors. [Correct Ans: - C. Add the commission concern as the first risk area to be addressed.
A compliance and ethics professional should FIRST ensure that risks are
A. Eliminated
B. Prioritized
C. Avoided
D. Deferred [Correct Ans: - B. Prioritized
Which of the following is an essential element of a risk assessment?
A. Provide training
B. Ensure proper discipline.
C. Review number of hotline calls
D. Interview managers [Correct Ans: - D. Interview managers
A compliance and ethics professional determines that corporate travel expense reports are filled with mistakes. Which of the following is the BEST way to address this problem? t
A. Hold mandatory training for all employees required to travel.
B. Recommend termination of employees who submit incorrect expense reports.
C. Hyperlink the policy to the internal corporate compliance website.
D. Send an email to all employees repeating corporate policy on this matter [Correct Ans: - A. Hold mandatory training for all employees required to travel.
A compliance and ethics work plan should be developed:
A. Based upon a risk assessment.
B. By legal counsel
C. With oversight by internal audit.
D. At least quarterly [Correct Ans: - A. Based upon a risk assessment.
Because of the changes in management and acquisitions, a company has gone from being a domestic manufacturing business to a global services business. The board of directors has revised the company's mission, vision and values to reflect these changes in operations. Which of the following should the compliance and ethics professional do FIRST?
A. Conduct an operational audit.
B. Perform a risk assessment
C. Determine staffing requirements
D. Develop new training [Correct Ans: - B. Perform a risk assessment
A compliance and ethics professional (CEP) directly reports to the compliance and audit committee of the board with an indirect report to the CEO. The predominant expertise of the new board members is in finance, and they have recommended that the compliance budget for training, external audits, and legal expense be reduced significantly. Which of the following is the BEST response by the CEP?
A. Request reconsideration of the reduction
B. Reformulate the budget to present at the next board meeting.
C. Educate the board on their oversight responsibility.
D. Accept the recommendation by the board [Correct Ans: - C. Educate the board on their oversight responsibility.
Before collaborating with industry groups, trade associations, and other competitors to institute best practices, which of the following policies and rules should be reviewed?
A. Privacy
B. Anti-corruption
C. Employment
D. Competition [Correct Ans: - D. Competition
A company's senior executives, including the compliance and ethics professional (CEP), are discussing a new incentive program for sales staff. Which of the following should the CEP do next?
A. Recommend no incentive program for sales staff.
B. Defer the evaluation to sales and marketing
C. Conduct a review for potential risk issues.
D. Perform a cost-benefit analysis. [Correct Ans: - C. Conduct a review for potential risk issues. [Show Less]