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CCEP EXAM PREP TEST|| ACCURATE AND FREQUENTLY TESTED
QUESTIONS AND 100% CORRECT ANSWERS WITH RATIONALES||
LATEST AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS||
Define Compliance
1. Adherence to laws and regulations passed by official regulating bodies.
2. Principles of ethical conduct.
What is the False Claims Act?
When was it enacted?
When was it last amended?
Imposes liability on persons on persons and companies that defraud governmental
programs.
It allows individuals to file lawsuits on behalf of U.S. Gov't., who may receive a portion
of recovery.
May result in liability of up to 3x the program's loss, plus an additional penalty per claim
filed
What is the qui tam provision?
1|Page
,2|Page
Permits citizens unaffiliated with the government to file actions on behalf of the
government (called "whistleblowing"); and those whistleblowers can receive up to 30%
of any recovered damages.
What is the Defense Industry Initiative?
A nonpartisan/non-profit organization comprised of representatives from nearly 80
member companies, primarily from aerospace and defense, with the mission to
promote and advance a culture of ethical conduct in every company that provides
products and services through government contracting.
What are the US Federal Sentencing Guidelines?
When were they developed?
Who were they developed by? What
does Chapter 8 focus on? What's
included in the Guidelines?
Developed in 1991 by the United States Sentencing Commission. Chapter 8 focuses on
compliance programs for organizations. I*ncluded in the guidelines are the 7 elements
of a compliance program.
Why have a Compliance Program?
It safeguards an organization's legal responsibility to abide by applicable laws and
regulations.
List important benefits of having a Compliance Program.
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,3|Page
1. Demonstrates good corporate conduct.
2. Detects criminal and unethical conduct.
3. Central resource on industry regulations.
4. Encourages reporting w/o retaliation.
5. Allow for thorough investigations of misconduct.
6. Initiates immediate corrective action.
7. Reduces exposure to penalties, sanctions, CIAs, etc.
Why Compliance Programs are essential?
1. Protects organization's reputation.
2. "Doing the right thing."
3. Employees can report anonymously.
4. Keeps employees accountable.
5. Detect non-compliance early and reduces risk of fines.
More reasons to implement a compliance program.
Honesty/corporate citizenship. Cost-effective. Identifies and corrects misconduct. May
protect directors from liability.
Risks of not having a compliance program?
1. Qui tam lawsuits.
2. Government may impose:
a. CIAs
3|Page
, 4|Page
b. settlements
c. consent decrees
d. exclusions
Where does the culpability score come from?What is the culpability score?
U.S. Federal Sentencing Guidelines.
Adds points for aggravating factors and subtracts points for mitigating factors in
determination of fines for fraud or abuse.
What are 4 aggrevating factors to a culpability score?
1. Did upper-level employee know or participate in offense?
2. Is it a repeat offense?
3. Was gov't hindered during its investigation?
4. If there was awareness of violation and no attempt was made to mitigate or
address root cause.
What are 4 mitigating factors to a culpability score?
1. Did the organization have a compliance program in effect?
2. Did the organization report the violation promptly?
3. Did organization cooperate with government investigators?
4. Did the organization accept responsibility for the violation?
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CCEP EXAM PREP TEST|| ACCURATE AND FREQUENTLY TESTED
QUESTIONS AND 100% CORRECT ANSWERS WITH RATIONALES||
LATEST AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS||
Define Compliance
1. Adherence to laws and regulations passed by official regulating bodies.
2. Principles of ethical conduct.
What is the False Claims Act?
When was it enacted?
When was it last amended?
Imposes liability on persons on persons and companies that defraud governmental
programs.
It allows individuals to file lawsuits on behalf of U.S. Gov't., who may receive a portion
of recovery.
May result in liability of up to 3x the program's loss, plus an additional penalty per claim
filed
What is the qui tam provision?
1|Page
,2|Page
Permits citizens unaffiliated with the government to file actions on behalf of the
government (called "whistleblowing"); and those whistleblowers can receive up to 30%
of any recovered damages.
What is the Defense Industry Initiative?
A nonpartisan/non-profit organization comprised of representatives from nearly 80
member companies, primarily from aerospace and defense, with the mission to
promote and advance a culture of ethical conduct in every company that provides
products and services through government contracting.
What are the US Federal Sentencing Guidelines?
When were they developed?
Who were they developed by? What
does Chapter 8 focus on? What's
included in the Guidelines?
Developed in 1991 by the United States Sentencing Commission. Chapter 8 focuses on
compliance programs for organizations. I*ncluded in the guidelines are the 7 elements
of a compliance program.
Why have a Compliance Program?
It safeguards an organization's legal responsibility to abide by applicable laws and
regulations.
List important benefits of having a Compliance Program.
2|Page
,3|Page
1. Demonstrates good corporate conduct.
2. Detects criminal and unethical conduct.
3. Central resource on industry regulations.
4. Encourages reporting w/o retaliation.
5. Allow for thorough investigations of misconduct.
6. Initiates immediate corrective action.
7. Reduces exposure to penalties, sanctions, CIAs, etc.
Why Compliance Programs are essential?
1. Protects organization's reputation.
2. "Doing the right thing."
3. Employees can report anonymously.
4. Keeps employees accountable.
5. Detect non-compliance early and reduces risk of fines.
More reasons to implement a compliance program.
Honesty/corporate citizenship. Cost-effective. Identifies and corrects misconduct. May
protect directors from liability.
Risks of not having a compliance program?
1. Qui tam lawsuits.
2. Government may impose:
a. CIAs
3|Page
, 4|Page
b. settlements
c. consent decrees
d. exclusions
Where does the culpability score come from?What is the culpability score?
U.S. Federal Sentencing Guidelines.
Adds points for aggravating factors and subtracts points for mitigating factors in
determination of fines for fraud or abuse.
What are 4 aggrevating factors to a culpability score?
1. Did upper-level employee know or participate in offense?
2. Is it a repeat offense?
3. Was gov't hindered during its investigation?
4. If there was awareness of violation and no attempt was made to mitigate or
address root cause.
What are 4 mitigating factors to a culpability score?
1. Did the organization have a compliance program in effect?
2. Did the organization report the violation promptly?
3. Did organization cooperate with government investigators?
4. Did the organization accept responsibility for the violation?
4|Page
