CCM CCM Ethics and Whistleblower Protections 1

Question 1

Under the Sarbanes-Oxley Act (SOX), which employees are protected from retaliation for reporting securities fraud?

Accepted Answer

Employees of publicly traded companies who report violations in good faith

Answer

SOX Section 806 protects employees of publicly traded companies who report suspected securities fraud in good faith from retaliation by their employers.

Question 2

What is the primary purpose of an anonymous ethics hotline in a compliance program?

Accepted Answer

To provide a safe channel for employees to report compliance concerns without fear of retaliation

Answer

An ethics hotline gives employees a confidential and often anonymous channel to report compliance concerns, reducing fear of retaliation and encouraging reporting.

Question 3

Which federal agency administers the whistleblower program under the Dodd-Frank Act?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

The SEC administers the Dodd-Frank whistleblower program, which offers monetary awards and anti-retaliation protections to individuals who report securities law violations.

Question 4

What does 'retaliation' against a whistleblower typically include?

Accepted Answer

Adverse employment actions such as termination, demotion, or harassment

Answer

Retaliation against whistleblowers includes adverse employment actions such as firing, demotion, pay reduction, or creating a hostile work environment.

Question 5

What is a 'good faith' report in the context of whistleblower protections?

Accepted Answer

A report made with a reasonable belief that a violation has occurred, even if ultimately unproven

Answer

A good faith report is one made with a reasonable, honest belief that a violation has occurred, even if the concern turns out to be unfounded after investigation.

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM CCM Ethics and Whistleblower Protections 1