CCT Ethics & Corporate Governance 5

Question 1

A company's compliance program includes policies, but a risk assessment has never been conducted. Which fundamental program element is missing?

Accepted Answer

Risk assessment

Answer

The DOJ and SEC regard periodic risk assessments as foundational — without identifying and prioritizing risks, other program elements cannot be properly tailored.

Question 2

Which principle from the OECD Guidelines for Multinational Enterprises relates most directly to corporate governance transparency?

Accepted Answer

Disclosure of material information to shareholders and the public in a timely manner

Answer

The OECD Guidelines emphasize timely and accurate disclosure of material information on financial performance, ownership, and governance as a core transparency principle.

Question 3

Under the concept of 'corporate culture' in compliance, what does a 'speak-up culture' primarily aim to achieve?

Accepted Answer

Encouraging employees to raise concerns without fear of retaliation

Answer

A speak-up culture creates psychological safety so employees report concerns internally, enabling the organization to detect and remediate issues before they escalate.

Question 4

A company provides a lavish resort trip to a government procurement officer before a contract decision. Under the FCPA's antibribery provisions, this is most likely:

Accepted Answer

Prohibited because the intent is to influence an official act

Answer

The FCPA prohibits giving anything of value to a foreign official to influence an official act, and lavish entertainment provided to influence a contract award meets that standard regardless of dollar amount.

Question 5

Which fiduciary duty requires directors to act on an informed basis after adequate deliberation before making a business decision?

Accepted Answer

Duty of care

Answer

The duty of care requires directors to act with the care of a reasonably prudent person, which includes being adequately informed before making decisions.

(CCT) Certified Compliance Technician Practice Test

(CCT) Certified Compliance Technician Practice Test

CCT Ethics & Corporate Governance 5