Ethics, Compliance, and Regulatory Standards Flashcards
7 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics, Compliance, and Regulatory Standards flashcards as text
Under OSHA regulations, which party has primary responsibility for maintaining a safe work environment on a multi-employer construction site?
Answer: Each employer is responsible for its own employees and exposures it creates
OSHA's multi-employer citation policy holds each employer responsible for hazards affecting its employees and for hazards the employer creates, controls, or corrects.
In construction auditing, the concept of 'independence in appearance' means:
Answer: Third parties must reasonably believe the auditor is objective and unbiased
Independence in appearance means that reasonable and informed third parties must not perceive circumstances that would impair the auditor's objectivity.
A construction company's employee reports suspected fraud to a federal agency and is subsequently terminated. This termination may violate which legal protection?
Answer: Whistleblower protection provisions under the False Claims Act or SOX
Both the False Claims Act and Sarbanes-Oxley contain anti-retaliation provisions that protect employees who report fraud or securities violations.
Which contract type creates the greatest ethical risk related to cost inflation by a contractor?
Answer: Cost-plus-percentage-of-cost contract
Cost-plus-percentage-of-cost contracts create a financial incentive to inflate costs since the contractor's fee increases as costs rise.
An auditor who accepts a gift from a contractor currently under audit is violating which primary professional standard?
Answer: Objectivity
Accepting gifts from an auditee impairs or appears to impair the auditor's objectivity, which is a core principle of the IIA Code of Ethics.
The Sherman Antitrust Act is most relevant to construction auditing when evaluating:
Answer: Bid rigging and price-fixing arrangements among competitors
The Sherman Antitrust Act prohibits anticompetitive practices including bid rigging and price fixing, which are risks in construction procurement.
When a construction auditor discovers a material weakness in internal controls, the proper disclosure is to:
Answer: Report to senior management and the audit committee or board
Material weaknesses must be communicated to senior management and those charged with governance, such as the audit committee or board of directors.