CCS Legal & Ethical Compliance Standards 2

Question 1

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign official is explicitly permitted?

Accepted Answer

Facilitating payments to expedite routine governmental actions

Answer

The FCPA contains a narrow exception for 'facilitating payments' made to expedite or secure the performance of routine, non-discretionary governmental actions.

Question 2

A compliance officer discovers that a senior executive is falsifying expense reports for personal gain. The most appropriate initial action is to:

Accepted Answer

Report directly to the board's audit committee or independent directors

Answer

When misconduct involves senior management, the compliance officer should escalate to the board's audit committee or independent directors to ensure an independent investigation.

Question 3

Which legal doctrine holds that a corporation can be held criminally liable for the acts of its employees committed within the scope of employment to benefit the company?

Accepted Answer

Respondeat superior

Answer

Respondeat superior ('let the master answer') is the doctrine under which an employer is liable for criminal acts of employees acting within the scope of their employment.

Question 4

The Dodd-Frank Act's whistleblower program administered by the SEC awards whistleblowers who provide original information leading to enforcement actions resulting in sanctions exceeding:

Accepted Answer

$1 million

Answer

SEC whistleblowers are eligible for awards when their information leads to enforcement actions with sanctions exceeding $1 million.

Question 5

Which of the following best describes the 'business judgment rule' in the context of corporate compliance?

Accepted Answer

Courts will defer to directors' decisions made in good faith and with due care

Answer

The business judgment rule protects directors from liability for decisions made in good faith, with due care, and in the honest belief they are acting in the company's best interest.

(CCS) Certified Compliance Specialist Practice Test

(CCS) Certified Compliance Specialist Practice Test

CCS Legal & Ethical Compliance Standards 2