CCEP Audit and Reporting 5

Question 1

Under the Dodd-Frank Act, which behavior by an employer constitutes prohibited retaliation against a whistleblower?

Accepted Answer

Terminating, demoting, or harassing an employee for reporting potential securities violations

Answer

Dodd-Frank prohibits adverse employment actions—including termination, demotion, and harassment—taken against employees because they reported potential securities law violations.

Question 2

Which metric would BEST measure the effectiveness of a compliance hotline over time?

Accepted Answer

Trends in report volume, substantiation rates, and time-to-close investigations

Answer

Tracking report volume trends, how many reports are substantiated, and how quickly investigations are resolved provides insight into hotline health and organizational ethics culture.

Question 3

A compliance team is preparing to audit a third-party vendor. Which document most directly grants the right to conduct such an audit?

Accepted Answer

A contractual audit rights clause in the vendor agreement

Answer

An audit rights clause in the vendor contract is the legal mechanism that entitles the company to inspect the vendor's records and operations for compliance.

Question 4

Which principle guides the frequency with which a compliance program should be audited?

Accepted Answer

Audit frequency should be commensurate with the organization's risk profile and any material changes in the environment

Answer

Risk-based audit scheduling ties audit frequency to the current risk landscape, ensuring higher-risk areas receive more frequent scrutiny as conditions change.

Question 5

What is the purpose of audit 'workpapers' in a compliance audit?

Accepted Answer

To document the evidence gathered, procedures performed, and conclusions reached during the audit

Answer

Workpapers are the auditor's internal record of evidence, procedures, and conclusions, providing a trail that supports the audit report and demonstrates due professional care.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Audit and Reporting 5