CCM CCM Ethics and Whistleblower Protections 4

Question 1

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

Accepted Answer

10%

Answer

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

Question 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?

Accepted Answer

Report the misconduct through the proper internal channel

Answer

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

Question 3

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

Accepted Answer

Sarbanes-Oxley Act Section 806

Answer

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

Question 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:

Accepted Answer

Protected whistleblower retaliation

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM CCM Ethics and Whistleblower Protections 4