CVA Regulatory Compliance & Audit Standards 2

Question 1

Under the Fair Housing Act, a verification agent discovers a landlord is requiring a higher security deposit from applicants of a specific national origin. This is an example of:

Accepted Answer

Disparate treatment discrimination

Answer

Disparate treatment occurs when individuals are treated differently based on a protected class, such as national origin, which violates the Fair Housing Act.

Question 2

Which regulation requires financial institutions to implement a Customer Identification Program (CIP) as part of anti-money laundering compliance?

Accepted Answer

Bank Secrecy Act / USA PATRIOT Act Section 326

Answer

Section 326 of the USA PATRIOT Act amended the Bank Secrecy Act to require financial institutions to establish CIP procedures to verify customer identities.

Question 3

An auditor reviewing an employment verification process finds that the employer retains I-9 forms for 10 years after hire for all employees. What issue should the auditor flag?

Accepted Answer

Retention should be 3 years from hire or 1 year after termination, whichever is later

Answer

USCIS regulations require I-9 forms to be retained for 3 years from the date of hire or 1 year after the date employment ends, whichever is later.

Question 4

During a compliance audit, a CVA finds that a background screening company sends adverse action notices simultaneously with the pre-adverse action notice. Which law does this violate?

Accepted Answer

Fair Credit Reporting Act (FCRA)

Answer

The FCRA requires a waiting period between the pre-adverse action notice and the final adverse action notice to give the consumer time to dispute inaccuracies.

Question 5

Which of the following best describes the purpose of a 'compliance audit trail' in verification processes?

Accepted Answer

A chronological record of actions taken during verification for accountability and review

Answer

A compliance audit trail provides a chronological, documented record of verification steps taken, ensuring accountability and enabling post-audit review.

(CVA) Certified Verification Agent Practice Test

(CVA) Certified Verification Agent Practice Test

CVA Regulatory Compliance & Audit Standards 2