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.
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, 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.
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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.
1
, 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.
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