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CCM Ethics and Whistleblower Protections Flashcards

7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 CCM Ethics and Whistleblower Protections flashcards as text

  1. Under the Dodd-Frank Act, what is the minimum percentage of monetary sanctions a whistleblower must qualify for to receive an award?

    Answer: 10%

    Dodd-Frank provides whistleblowers 10%–30% of sanctions exceeding $1 million collected by the SEC.

  2. A compliance officer discovers a colleague has submitted falsified expense reports totaling $500. The colleague is a close friend. What is the ethically correct action?

    Answer: Report the misconduct through the proper internal channel

    Materiality does not determine reporting obligations; all confirmed misconduct must be escalated through proper channels regardless of personal relationships.

  3. Which federal law specifically protects employees of publicly traded companies who report securities violations from retaliation?

    Answer: Sarbanes-Oxley Act Section 806

    SOX Section 806 prohibits retaliation against employees of publicly traded companies who report securities fraud to federal agencies or supervisors.

  4. An employee reports a compliance concern anonymously through the hotline, but management identifies the employee through investigative steps and terminates them. This most likely constitutes:

    Answer: Protected whistleblower retaliation

    Terminating an employee because they made a protected disclosure, even if made anonymously, constitutes illegal retaliation under whistleblower statutes.

  5. In ethical decision-making frameworks, 'utilitarianism' guides a compliance professional to:

    Answer: Choose the action that produces the greatest good for the greatest number

    Utilitarianism evaluates ethical choices based on outcomes that maximize overall benefit to the greatest number of people.

  6. The False Claims Act's qui tam provision allows:

    Answer: Private individuals to sue on behalf of the government and share in recovered funds

    Qui tam allows private citizens (relators) to file suit on the government's behalf for fraud against federal programs and receive 15%–30% of recoveries.

  7. A compliance manager learns that a senior executive is conducting business with a vendor owned by the executive's spouse without disclosure. This situation is best described as:

    Answer: A potential conflict of interest requiring disclosure and review

    Undisclosed transactions with entities related to senior personnel represent conflicts of interest that must be disclosed and reviewed under most ethics policies.