CGRC Compliance Programs 2

Question 1

Under the Federal Sentencing Guidelines, which factor most significantly reduces an organization's culpability score when a compliance violation occurs?

Accepted Answer

Self-reporting the violation before investigation

Answer

Self-reporting violations before a government investigation begins is one of the most significant mitigating factors under the Federal Sentencing Guidelines culpability scoring system.

Question 2

Which element distinguishes an effective compliance program from a merely 'paper' compliance program?

Accepted Answer

Demonstrated enforcement and corrective action

Answer

An effective compliance program demonstrates actual enforcement — including discipline and corrective action — rather than just having written policies that are not acted upon.

Question 3

A compliance officer discovers that a senior executive is engaged in policy violations. What is the BEST immediate course of action?

Accepted Answer

Escalate to the board audit committee or general counsel

Answer

When a senior executive is implicated, the compliance officer should escalate to the board audit committee or general counsel to ensure independence and appropriate oversight.

Question 4

Which best describes the 'tone at the top' principle in compliance programs?

Accepted Answer

Senior leaders model ethical behavior and visibly support compliance

Answer

Tone at the top means senior leadership actively demonstrates commitment to ethical conduct and compliance, which shapes the organizational culture.

Question 5

A compliance hotline report is received alleging financial fraud. Which step should occur FIRST in the investigation process?

Accepted Answer

Preserve relevant documents and evidence

Answer

Preserving documents and evidence is the critical first step to prevent spoliation and ensure the integrity of the investigation.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Compliance Programs 2