CGRC Compliance Programs 4

Question 1

A company operates in 12 countries with varying local laws. What is the BEST approach to compliance program design?

Accepted Answer

Use a core global framework with local adaptations for jurisdiction-specific requirements

Answer

A core global framework with local adaptations balances consistency and efficiency with the need to meet jurisdiction-specific legal requirements.

Question 2

Which document typically serves as the ethical and behavioral foundation of a compliance program?

Accepted Answer

The code of conduct

Answer

The code of conduct articulates the organization's values and expected behaviors, serving as the ethical foundation upon which all other compliance policies are built.

Question 3

What is the key difference between compliance monitoring and compliance auditing?

Accepted Answer

Monitoring is ongoing and continuous; auditing is periodic and formal

Answer

Compliance monitoring is a continuous, ongoing activity that checks day-to-day compliance, while auditing is a periodic, formal, and systematic evaluation.

Question 4

An employee uses a compliance hotline to report alleged misconduct but later claims retaliation. Under the Dodd-Frank Act, which agency has enforcement authority over such retaliation claims for securities violations?

Accepted Answer

Securities and Exchange Commission

Answer

The SEC has enforcement authority over retaliation claims under the Dodd-Frank whistleblower protection provisions for securities-related violations.

Question 5

Which compliance program element is specifically designed to detect violations that have already occurred?

Accepted Answer

Compliance monitoring and auditing

Answer

Monitoring and auditing are detective controls designed to identify compliance violations after they occur, enabling corrective action.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Compliance Programs 4