RCC Investigations, Reporting, and Ethics 2

Question 1

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?

Accepted Answer

Document the retaliation allegation separately and investigate it independently

Answer

Retaliation allegations must be treated as separate, independent matters to ensure impartiality and protect the reporting employee.

Question 2

Which standard of proof is typically applied in internal compliance investigations?

Accepted Answer

Preponderance of the evidence

Answer

Internal investigations use the civil 'preponderance of the evidence' standard—more likely than not—rather than the higher criminal standard.

Question 3

A compliance team discovers that its own CCO may be involved in the misconduct under investigation. What is the most appropriate next step?

Accepted Answer

Have the CCO recuse themselves and escalate to the Audit Committee or Board

Answer

When the CCO is implicated, independence requires escalation to the Audit Committee or Board to avoid a conflict of interest.

Question 4

Under the Sarbanes-Oxley Act Section 301, audit committees of public companies must establish procedures for what purpose?

Accepted Answer

Receiving, retaining, and treating complaints regarding accounting and internal controls

Answer

SOX Section 301 requires audit committees to have procedures for receiving and handling complaints about accounting, internal controls, and auditing matters.

Question 5

What is 'selective prosecution' in the context of compliance enforcement, and why is it an ethical concern?

Accepted Answer

Choosing to investigate only high-level employees, creating unfair disparate impact

Answer

Selective prosecution targeting only senior or junior staff inconsistently violates fairness principles and can expose the organization to discrimination claims.

(RCC) Regulatory Compliance Certification Practice Test

(RCC) Regulatory Compliance Certification Practice Test

RCC Investigations, Reporting, and Ethics 2