CCEP: SET 1 QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
A company uses 5,000 third parties to accomplish business tasks. Which of the following steps should
the compliance and ethics professional take to require third parties to comply with the company's ethics
and compliance standards?
A. Read the third party's code of conduct.
B. Include the standards in the third-party contract.
C. Conduct due diligence on the third party.
D. Communicate the standards to the third part - ANSWER B. Include the standards in the third-party
contract.
When auditing compliance issues, the person must be
A. external.
B. an internal auditor.
C. certified.
D. independent - ANSWER D. independent
Which of the following is the MOST effective way a compliance and ethics professional can evaluate
compliance and ethics audit findings?
A. Investigate only those allegations received from mid-level management.
B. Conduct trend analysis on identified risk areas and benchmark results against industry standards.
C. Track the number of sexual harassment allegations received by HR that are substantiated.
D. Review the number of hotline calls received and provide the information to the CFO - ANSWER B.
Conduct trend analysis on identified risk areas and benchmark results against industry standards.
After an internal investigation, a plant manager is found to have willfully disregarded environmental
regulations to reach production goals. HR and the plant manager's supervisor agree that the plant
manager should be terminated. After a month, the plant manager has not been terminated. Which of
the following should be the compliance and ethics professional's FIRST action?
A. Terminate the plant manager immediately.
B. Remind the supervisor that he agreed to terminate the plant manager.
, C. report the lack of disciplinary action to the board of directors.
D. Require HR to terminate the plant manager - ANSWER D. Require HR to terminate the plant manage
Question: 8 A risk assessment indicated that finance and purchasing were high-risk areas. Subsequent
risk assessments focused only on these departments. A routine audit identified that employees in a
different department violated the company's policies and procedures. Future risk assessments should be
done
A. across the entire organization.
B. on an as-needed basis throughout the organization.
C. randomly throughout the organization.
D. on a priority basis within the organization. - ANSWER D. on a priority basis within the organization.
An HR director owns several pieces of rental property close to corporate headquarters. As part of the
new-hire package, a list of rental properties, including the HR director's properties, is provided to new
employees. To determine whether the inclusion of the HR director's properties on this list is appropriate,
the compliance and ethics professional should FIRST
A. require the properties be removed from the list.
B. evaluate if the rent is competitive.
C. discuss the issue with senior leadership.
D. review the conflict of interest policy. - ANSWER D. review the conflict of interest policy.
A compliance and ethics professional (CEP) discovers a new hire is the nephew of one of the company's
directors. The director is the chairperson of the compensation committee. When the CEP asks the CEO if
he was aware of this situation, the CEO explains that the new hire is the "best in the business." Which of
the following should the CEP do FIRST? A. Monitor the new hire's performance to ensure that the
employee is as valuable as promised.
B. Review the conflict of interest policy to determine if an action plan is necessary.
C. Research the new hire's credentials to determine if he is the most qualified.
D. Revise the corporate code of conduct to reflect the CEO's decision. - ANSWER B. Review the conflict of
interest policy to determine if an action plan is necessary.
Because of a pending lawsuit, a company's lawyer advises the compliance and ethics professional (CEP)
not to conduct any audits, risk assessment or program evaluations because they could be used against
ANSWERS WITH SOLUTIONS 2024
A company uses 5,000 third parties to accomplish business tasks. Which of the following steps should
the compliance and ethics professional take to require third parties to comply with the company's ethics
and compliance standards?
A. Read the third party's code of conduct.
B. Include the standards in the third-party contract.
C. Conduct due diligence on the third party.
D. Communicate the standards to the third part - ANSWER B. Include the standards in the third-party
contract.
When auditing compliance issues, the person must be
A. external.
B. an internal auditor.
C. certified.
D. independent - ANSWER D. independent
Which of the following is the MOST effective way a compliance and ethics professional can evaluate
compliance and ethics audit findings?
A. Investigate only those allegations received from mid-level management.
B. Conduct trend analysis on identified risk areas and benchmark results against industry standards.
C. Track the number of sexual harassment allegations received by HR that are substantiated.
D. Review the number of hotline calls received and provide the information to the CFO - ANSWER B.
Conduct trend analysis on identified risk areas and benchmark results against industry standards.
After an internal investigation, a plant manager is found to have willfully disregarded environmental
regulations to reach production goals. HR and the plant manager's supervisor agree that the plant
manager should be terminated. After a month, the plant manager has not been terminated. Which of
the following should be the compliance and ethics professional's FIRST action?
A. Terminate the plant manager immediately.
B. Remind the supervisor that he agreed to terminate the plant manager.
, C. report the lack of disciplinary action to the board of directors.
D. Require HR to terminate the plant manager - ANSWER D. Require HR to terminate the plant manage
Question: 8 A risk assessment indicated that finance and purchasing were high-risk areas. Subsequent
risk assessments focused only on these departments. A routine audit identified that employees in a
different department violated the company's policies and procedures. Future risk assessments should be
done
A. across the entire organization.
B. on an as-needed basis throughout the organization.
C. randomly throughout the organization.
D. on a priority basis within the organization. - ANSWER D. on a priority basis within the organization.
An HR director owns several pieces of rental property close to corporate headquarters. As part of the
new-hire package, a list of rental properties, including the HR director's properties, is provided to new
employees. To determine whether the inclusion of the HR director's properties on this list is appropriate,
the compliance and ethics professional should FIRST
A. require the properties be removed from the list.
B. evaluate if the rent is competitive.
C. discuss the issue with senior leadership.
D. review the conflict of interest policy. - ANSWER D. review the conflict of interest policy.
A compliance and ethics professional (CEP) discovers a new hire is the nephew of one of the company's
directors. The director is the chairperson of the compensation committee. When the CEP asks the CEO if
he was aware of this situation, the CEO explains that the new hire is the "best in the business." Which of
the following should the CEP do FIRST? A. Monitor the new hire's performance to ensure that the
employee is as valuable as promised.
B. Review the conflict of interest policy to determine if an action plan is necessary.
C. Research the new hire's credentials to determine if he is the most qualified.
D. Revise the corporate code of conduct to reflect the CEO's decision. - ANSWER B. Review the conflict of
interest policy to determine if an action plan is necessary.
Because of a pending lawsuit, a company's lawyer advises the compliance and ethics professional (CEP)
not to conduct any audits, risk assessment or program evaluations because they could be used against
