CCS CCS Compliance Investigations & Corrective Action

Question 1

What is the first step a compliance officer should take when a potential violation is reported?

Accepted Answer

Perform a preliminary assessment to determine whether a full investigation is warranted

Answer

Immediately terminate the suspected employee

Answer

Notify the media about the alleged misconduct

Answer

Discard the report if it was submitted anonymously

Question 2

Why is it important to preserve documentation at the outset of a compliance investigation?

Accepted Answer

To protect the integrity of evidence and support potential legal or regulatory proceedings

Answer

To distribute to all employees for transparency

Answer

To create marketing materials about company ethics

Answer

To fulfill annual budget reporting requirements

Question 3

Which principle requires that individuals under investigation be treated fairly and given an opportunity to respond to allegations?

Accepted Answer

Due process

Answer

The business judgment rule

Answer

The exclusionary rule

Answer

The prudent person standard

Question 4

When should attorney-client privilege be considered during a compliance investigation?

Accepted Answer

From the outset when legal exposure is likely and legal counsel directs the investigation

Answer

Only after the investigation is complete

Answer

Only if the investigation involves a foreign country

Answer

Never — privilege does not apply to internal investigations

Question 5

What is 'corrective action' in a compliance context?

Accepted Answer

Steps taken to remediate identified compliance failures and prevent recurrence

Answer

Firing employees who make errors

Answer

Rewarding employees for reporting violations

Answer

Amending the company's articles of incorporation

Question 6

Which characteristic distinguishes an effective compliance investigation from a superficial one?

Accepted Answer

Objectivity, thoroughness, and documentation of findings

Answer

Speed — completing it in less than 24 hours

Answer

Involving only the HR department

Answer

Publicly announcing the investigation before it begins