CCEP exam (Compliance)
A CFO discovers the CEO is using company funds for personal expenses. The CFO buried
this information in the company's financial reports. The compliance and ethics professional
learns of the situation through the company's hotline. Which of the following should be the
compliance and ethics professional's FIRST response? - correct answer-Investigate to verify
the allegation
A company receives a federal subpoena from the government requesting all of the
company's documents from 1990 to the present. The company's compliance and ethics
professional has been asked to respond to the subpoena and to advise the company's
employees on their role in the process. Which of the following should the compliance and
ethics professional do FIRST? - correct answer-Consult with the company's legal counsel
A company's Code of Conduct has not been reviewed for over 2 years. HR recommended
adding content that would double its size. The compliance committee members expressed
concern that adding a significant amount of content could negatively impact its effectiveness.
Which of the following is the compliance and ethics professional's NEXT step before
consolidating revisions? - correct answer-Compare the content outline with other
organizations
A compliance and ethics professional has developed a policy intended to prohibit employees
from paying, offering or promising to pay officials of other countries for the purposes of
obtaining or maintaining business. This policy will help the organization comply with - correct
answer-Foreign Corrupt Practices Act (FCPA)
A compliance and ethics professional in auditing the organization's compliance with
Sarbanes-Oxley Act. Which of the following findings indicates a violation? - correct
answer-The public accounting firm providing audit services has had the same audit partner
reviewing the audits for the past 6 years.
A compliance and ethics professional investigates a report of sexual harassment. The
incident does not constitute sexual harassment but reveals the employee's misunderstanding
of the harassment policy. Which of the following should be the FIRST step in a corrective
action plan? - correct answer-Provide education and training on the policy
A compliance and ethics professional investigates a report of sexual harassment. The
incident does not constitute sexual harassment but reveals the employee's misunderstanding
of the harassment policy. Which of the following should be the NEXT step in a corrective
action plan? - correct answer-Consider surveying the workforce or providing additional team,
departmental, division, or company training regarding sexual harassment.
A compliance and ethics professional is evaluating an organization's employee handbook. A
conflict exists between the Code of Conduct and the employee handbook. HR is responsible
for the employee handbook. The documents have been approved by the board of directors.
Which of the following actions should the compliance and ethics professional take FIRST? -
, correct answer-Contact HR to determine if the inconsistencies between the documents can
be resolved
A compliance and ethics professional receives a notification from the tax authority
concerning revocation of the organization's tax-exempt status. The reason provided was that
employees were speaking at political rallies while wearing their work uniforms and
identification badges. Which of the following should be the compliance and ethics
professional's FIRST action? - correct answer-Contact a tax consultant
A compliance and ethics professional receives an anonymous complaint that an employee is
receiving gifts from a vendor. An investigation finds the employee is not in violation of the
current gift policy and the policy has not been reviewed in five years. Which of the following
is the compliance and ethics professional's MOST appropriate action? - correct
answer-Benchmark for vendor relation best practices
A compliance and ethics program should include:
1. An employee benefits handbook
2. Document retention guidelines
3. Policies regarding confidentiality
4. A statement about the organizations culture - correct answer-2, 3, and 4 only
A compliance structural policy differs from a substantive policy in that a structural policy
should:
A.) Describe the risk areas to the organization
B.) Describe how to operate within the regulations
C.) Define the regulations that apply to the organization
D.) Define the framework the program should operate within - correct answer-D.) Define the
framework the program should operate within
A hotline allows employees and third parties to: - correct answer-Report compliance and
ethics violations
A problem was found in a routine accounting audit. Corrective action was taken and the
policies and procedures were updated. Which of the following is the next step in the audit
process?
A) Report findings to the board of directors
B) Prepare the final summary and storage of the audit results
C) Review the process after a period of time to determine if the problem is resolved
D) Conduct a risk assessment to identify other possible issues. - correct answer-Review the
process after a period of time to determine if the problem is resolved.
A U.S. based company has recently acquired a subsidiary with offices in Europe. The
compliance and ethics professional has been charged with implementing an anonymous
hotline for the new subsidiary. Which of the following should the compliance and ethics
professional do FIRST? - correct answer-Consult with resources to determine local laws.
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