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
The Foreign Corrupt Practices Act (FCPA) applies to construction companies primarily when:
Answer: They engage in business with foreign officials and make improper payments to obtain contracts
The FCPA prohibits U.S. companies and individuals from bribing foreign government officials to obtain or retain business.
A construction auditor reviewing payroll records notices that workers are classified as independent contractors but are supervised daily and use company equipment. The auditor should flag this as a potential violation of:
Answer: Worker misclassification rules under IRS guidelines and labor law
Workers who are supervised, use company equipment, and have no independent business risk are typically employees, and misclassifying them as contractors violates IRS and labor law standards.
In government construction contracting, 'organizational conflicts of interest' (OCI) are most commonly managed through:
Answer: Mitigation plans, recusal, or disqualification from conflicted procurements
OCIs are managed through mitigation plans that address the conflict, or by recusing the conflicted party from the affected procurement.
A Disadvantaged Business Enterprise (DBE) program violation occurs when a prime contractor:
Answer: Lists a DBE firm as a subcontractor without intending to actually use them
Listing a DBE for credit without genuine intent to use them is known as 'fronting' and constitutes a DBE program violation.
Which of the following best describes 'professional skepticism' as applied in construction auditing?
Answer: Questioning representations and seeking corroborating evidence rather than accepting claims at face value
Professional skepticism means maintaining a questioning mind and critically assessing evidence rather than uncritically accepting management's assertions.
Under the Buy American Act, federal construction contracts require that:
Answer: Manufactured construction materials must be produced in the United States
The Buy American Act requires that construction materials used in federal projects be manufactured in the United States, subject to certain waivers.
An auditor who shares confidential audit findings with an outside party without authorization violates which IIA principle?
Answer: Confidentiality
The IIA Code of Ethics requires auditors to respect the confidentiality of information obtained during the audit and not disclose it without proper authority.