COM Compliance and Risk Management Flashcards
6 cards from real COM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 COM Compliance and Risk Management flashcards as text
What is a 'conflict of interest' in a professional office environment?
Answer: A situation where personal interests could improperly influence professional decisions
A conflict of interest arises when personal relationships or financial interests could compromise an employee's objectivity or professional judgment.
Which of the following is a common internal control used to prevent financial fraud in an office?
Answer: Segregation of duties, ensuring no single person controls all steps of a transaction
Segregation of duties divides financial tasks among multiple employees, reducing the opportunity for any single person to commit and conceal fraud.
What is the role of a business continuity plan (BCP) in office risk management?
Answer: To ensure critical business functions can continue during and after a disruptive event
A BCP outlines procedures to maintain essential operations during disruptions such as natural disasters, cyberattacks, or power outages.
What does 'due diligence' mean in the context of vendor selection for an office manager?
Answer: Thoroughly researching and verifying a vendor's reputation, compliance, and financial stability before contracting
Due diligence in vendor selection involves verifying credentials, financial health, compliance history, and references to minimize risk.
Which U.S. regulation most directly governs data privacy obligations for healthcare-related information managed by an office?
Answer: HIPAA (Health Insurance Portability and Accountability Act)
HIPAA sets the federal standard for protecting sensitive patient health information and applies to covered entities and their business associates.
An office manager discovers that a vendor invoice has been paid twice by mistake. What is the correct compliance-oriented response?
Answer: Notify the finance team, document the error, and request a refund from the vendor
Duplicate payments must be formally documented, reported to finance, and recovered from the vendor to maintain accurate records and internal controls.