Whistleblower Protection & Reporting Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Whistleblower Protection & Reporting flashcards as text
What is the significance of the 2011 Dodd-Frank rules that the SEC finalized regarding whistleblower protections?
Answer: They created a formal program with financial incentives and anti-retaliation rules for securities violations
The 2011 SEC rules formalized the Dodd-Frank whistleblower program, establishing financial awards, anti-retaliation protections, and submission procedures.
Why might a company choose to implement a third-party ethics hotline rather than an internal one?
Answer: They provide greater perceived anonymity and independence from management influence
Third-party hotlines increase reporter confidence in anonymity and reduce concern that management will identify or suppress reports.
An employee discovers their manager is falsifying expense reports totaling $800. They are unsure whether to report it. What ethical principle best supports reporting?
Answer: The duty-based principle of integrity requires reporting known dishonesty regardless of amount
Duty-based ethics holds that honesty and integrity are obligations regardless of the financial magnitude of the violation.
What does it mean for a whistleblower to 'exhaust internal remedies' before external reporting?
Answer: The whistleblower must first attempt to address the issue through available internal channels before going outside the organization
Exhausting internal remedies means using the organization's own reporting channels (hotlines, compliance officers, boards) before escalating externally.
Which of the following best describes 'protected disclosure' under federal whistleblower law?
Answer: A report of information an employee reasonably believes evidences a violation of law, rule, or regulation
A protected disclosure is a report of information that the employee reasonably believes demonstrates a legal violation, and it covers various channels and formats.
What is the role of the SEC's Office of the Whistleblower in the enforcement process?
Answer: It administers the whistleblower award program and coordinates tips with SEC enforcement divisions
The SEC's Office of the Whistleblower manages tip intake, determines award eligibility, and coordinates with enforcement staff to pursue viable cases.
A whistleblower who reported internally later discovers the company retaliated by sharing negative references with prospective employers. Which type of retaliation is this?
Answer: Indirect or post-employment retaliation affecting future opportunities
Sharing negative references to sabotage future employment is a recognized form of post-employment retaliation that remains prohibited under many whistleblower statutes.