Which of the following BEST describes the purpose of training based upon risk assessment
findings?
A.) Reducing the organization's legal exposure
B.) Educating employees on laws and regulations
C.) Educating the board on the compliance program
D.) Reducing the organization's insurance premiums - ANSWER A. Reducing the
organization's legal exposure
A compliance and ethics professional investigates a report of sexual harassment. The
incident does not constitute sexual harassment, but reveals the employee's
misunderstandings of the harassment policy. Which of the following should be the FIRST
step in a corrective action plan?
A.) Consult outside counsel
B.) Disclose the incident to the EEOC
C.) Provide education and training on the policy
D.) Survey employees' understanding of the policy - ANSWER C.) Provide education
and training on the policy
Which of the following provides guidance for the development of a compliance program?
A.) Sarbanes-Oxley Act
B.) Federal Sentencing Guidelines
1
,C.) Security and Exchange Commission
D.) Office for Civil Rights - ANSWER B.) Federal Sentencing Guidelines
Which of the following is the BEST outcome of a compliance and ethics program?
A.) Mitigating risk
B.) Identifying risk
C.) Prioritizing risk
D.) Documenting risk - ANSWER A.) Mitigating risk
Training on price-fixing is MOST important for which of the following staff?
A.) Management
B.) Sales
C.) Marketing
D.) Accounting - ANSWER B.) Sales
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 organization's culture
A.) 1,2, and 3 only
B.) 1, 2, and 4 only
C.) 1, 3, and 4 only
2
, D.) 2, 3, and 4 only - ANSWER D.) 2, 3, and 4 only
A US-based retail company has 250 stores in 30 states. Past compliance efforts have included
a silo-based approach with minimal oversight and the CEO acting as the Compliance and
Ethics Officer. One person in each state posted compliance-related information sent from
corporate, but there were no actual educational sessions. Policies and procedures were
developed by corporate and reviewed 5 years ago. The organization has decided that a more
dedicated approach is needed and hires a Compliance and Ethics Officer. Which of the
following actions should the new Compliance and Ethics Officer take FIRST?
A.) Conduct a compliance and ethics risk assessment
B.) Review organization-wide compliance policies
C.) Perform a statistically valid compliance audit
D.) Distribute a compliance training packet to employees - ANSWER A.) Conduct a
compliance and ethics risk assessment
An employee discloses to counsel and the compliance and ethics professional that a
supervisor has been verbally abusive. An investigation finds that the same supervisor has
also been sexually harassing several employees in his department. The compliance program
requires that findings of harassment be documented and forwarded by the compliance and
ethics professional to the CEO with a recommendation for appropriate discipline. Counsel
advises that no report be written because of possible litigation. The compliance and ethics
professional's BEST course of action is to:
A.) Follow counsel's advice
B.) Submit a written report
C.) Ask counsel to prepare the written report
D.) Recommend disciplinary action against counsel - ANSWER C.) Ask counsel to
prepare the written report
3
findings?
A.) Reducing the organization's legal exposure
B.) Educating employees on laws and regulations
C.) Educating the board on the compliance program
D.) Reducing the organization's insurance premiums - ANSWER A. Reducing the
organization's legal exposure
A compliance and ethics professional investigates a report of sexual harassment. The
incident does not constitute sexual harassment, but reveals the employee's
misunderstandings of the harassment policy. Which of the following should be the FIRST
step in a corrective action plan?
A.) Consult outside counsel
B.) Disclose the incident to the EEOC
C.) Provide education and training on the policy
D.) Survey employees' understanding of the policy - ANSWER C.) Provide education
and training on the policy
Which of the following provides guidance for the development of a compliance program?
A.) Sarbanes-Oxley Act
B.) Federal Sentencing Guidelines
1
,C.) Security and Exchange Commission
D.) Office for Civil Rights - ANSWER B.) Federal Sentencing Guidelines
Which of the following is the BEST outcome of a compliance and ethics program?
A.) Mitigating risk
B.) Identifying risk
C.) Prioritizing risk
D.) Documenting risk - ANSWER A.) Mitigating risk
Training on price-fixing is MOST important for which of the following staff?
A.) Management
B.) Sales
C.) Marketing
D.) Accounting - ANSWER B.) Sales
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 organization's culture
A.) 1,2, and 3 only
B.) 1, 2, and 4 only
C.) 1, 3, and 4 only
2
, D.) 2, 3, and 4 only - ANSWER D.) 2, 3, and 4 only
A US-based retail company has 250 stores in 30 states. Past compliance efforts have included
a silo-based approach with minimal oversight and the CEO acting as the Compliance and
Ethics Officer. One person in each state posted compliance-related information sent from
corporate, but there were no actual educational sessions. Policies and procedures were
developed by corporate and reviewed 5 years ago. The organization has decided that a more
dedicated approach is needed and hires a Compliance and Ethics Officer. Which of the
following actions should the new Compliance and Ethics Officer take FIRST?
A.) Conduct a compliance and ethics risk assessment
B.) Review organization-wide compliance policies
C.) Perform a statistically valid compliance audit
D.) Distribute a compliance training packet to employees - ANSWER A.) Conduct a
compliance and ethics risk assessment
An employee discloses to counsel and the compliance and ethics professional that a
supervisor has been verbally abusive. An investigation finds that the same supervisor has
also been sexually harassing several employees in his department. The compliance program
requires that findings of harassment be documented and forwarded by the compliance and
ethics professional to the CEO with a recommendation for appropriate discipline. Counsel
advises that no report be written because of possible litigation. The compliance and ethics
professional's BEST course of action is to:
A.) Follow counsel's advice
B.) Submit a written report
C.) Ask counsel to prepare the written report
D.) Recommend disciplinary action against counsel - ANSWER C.) Ask counsel to
prepare the written report
3
