1. 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: B. Include the standards in the
third-party contract.
2. When auditing compliance issues, the person must be
A. external.
B. an internal auditor.
C. certified.
D. independent: D. independent
3. 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: B. Conduct trend analysis on identified risk areas and benchmark results
against industry standards.
4. 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 terminat-
ed. 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.
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, C. report the lack of disciplinary action to the board of directors.
D. Require HR to terminate the plant manager: D. Require HR to terminate the
plant manage
5. Question: 8 A risk assessment indicated that finance and purchasing were
high-risk areas. Subsequent risk assessments focused only on these depart-
ments. A routine audit identified that employees in a different department
violated the company's policies and procedures. Future risk assessments
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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: B. Include the standards in the
third-party contract.
2. When auditing compliance issues, the person must be
A. external.
B. an internal auditor.
C. certified.
D. independent: D. independent
3. 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: B. Conduct trend analysis on identified risk areas and benchmark results
against industry standards.
4. 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 terminat-
ed. 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.
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, C. report the lack of disciplinary action to the board of directors.
D. Require HR to terminate the plant manager: D. Require HR to terminate the
plant manage
5. Question: 8 A risk assessment indicated that finance and purchasing were
high-risk areas. Subsequent risk assessments focused only on these depart-
ments. A routine audit identified that employees in a different department
violated the company's policies and procedures. Future risk assessments
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11
