CCA Ethics, Compliance, and Regulatory Standards 3

Question 1

Under OSHA regulations, which party has primary responsibility for maintaining a safe work environment on a multi-employer construction site?

Accepted Answer

Each employer is responsible for its own employees and exposures it creates

Answer

OSHA's multi-employer citation policy holds each employer responsible for hazards affecting its employees and for hazards the employer creates, controls, or corrects.

Question 2

In construction auditing, the concept of 'independence in appearance' means:

Accepted Answer

Third parties must reasonably believe the auditor is objective and unbiased

Answer

Independence in appearance means that reasonable and informed third parties must not perceive circumstances that would impair the auditor's objectivity.

Question 3

A construction company's employee reports suspected fraud to a federal agency and is subsequently terminated. This termination may violate which legal protection?

Accepted Answer

Whistleblower protection provisions under the False Claims Act or SOX

Answer

Both the False Claims Act and Sarbanes-Oxley contain anti-retaliation provisions that protect employees who report fraud or securities violations.

Question 4

Which contract type creates the greatest ethical risk related to cost inflation by a contractor?

Accepted Answer

Cost-plus-percentage-of-cost contract

Answer

Cost-plus-percentage-of-cost contracts create a financial incentive to inflate costs since the contractor's fee increases as costs rise.

Question 5

An auditor who accepts a gift from a contractor currently under audit is violating which primary professional standard?

Accepted Answer

Objectivity

Answer

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.

(CCA) Certified Construction Auditor Practice Test

(CCA) Certified Construction Auditor Practice Test

CCA Ethics, Compliance, and Regulatory Standards 3