Investigations, Reporting, and Ethics Flashcards
7 cards from real RCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Investigations, Reporting, and Ethics flashcards as text
During an internal investigation, an employee claims that a coworker retaliated against them for reporting a compliance concern. What should the compliance officer do first?
Answer: Document the retaliation allegation separately and investigate it independently
Retaliation allegations must be treated as separate, independent matters to ensure impartiality and protect the reporting employee.
Which standard of proof is typically applied in internal compliance investigations?
Answer: Preponderance of the evidence
Internal investigations use the civil 'preponderance of the evidence' standard—more likely than not—rather than the higher criminal standard.
A compliance team discovers that its own CCO may be involved in the misconduct under investigation. What is the most appropriate next step?
Answer: Have the CCO recuse themselves and escalate to the Audit Committee or Board
When the CCO is implicated, independence requires escalation to the Audit Committee or Board to avoid a conflict of interest.
Under the Sarbanes-Oxley Act Section 301, audit committees of public companies must establish procedures for what purpose?
Answer: Receiving, retaining, and treating complaints regarding accounting and internal controls
SOX Section 301 requires audit committees to have procedures for receiving and handling complaints about accounting, internal controls, and auditing matters.
What is 'selective prosecution' in the context of compliance enforcement, and why is it an ethical concern?
Answer: Choosing to investigate only high-level employees, creating unfair disparate impact
Selective prosecution targeting only senior or junior staff inconsistently violates fairness principles and can expose the organization to discrimination claims.
A compliance officer learns of a potential FCPA violation involving a foreign subsidiary. Which agency has primary jurisdiction over FCPA enforcement?
Answer: The Department of Justice (DOJ) and the SEC
FCPA enforcement is shared between the DOJ (criminal) and the SEC (civil) for issuers subject to U.S. securities laws.
Which ethical principle requires a compliance professional to avoid using confidential investigation information for personal gain?
Answer: Confidentiality
The principle of confidentiality prohibits using privileged information obtained during investigations for personal benefit or unauthorized disclosure.