CCEP Exam (Compliance)
Questions with 100% Correct
Answers Graded A+
What are the 7 elements of a Compliance Program? - Answer - 1. Standards of
Conduct/Policies and Procedures, 2. Compliance Officer and Compliance Committee, 3.
Education/Training, 4. Monitoring/Auditing, 5. Reporting and Investigating, 6.
Enforcement and Discipline, 7. Response and Prevention
A CFO discovers the CEO is using company funds for personal expenses. The CFO
buried this information in the company's financial reports. The compliance and ethics
professional learns of the situation through the company's hotline. Which of the
following should be the compliance and ethics professional's FIRST response? -
Answer - Investigate to verify the allegation
Which of the following is the MOST effective way a compliance and ethics professional
can evaluate compliance and ethics audit findings? - Answer - Conduct trend analysis
on identified risk areas and benchmark results against industry standards
Which of the following BEST describes the primary role of people of a compliance and
ethics professional? - Answer - Promotes a culture of compliance and ethics throughout
the organization
A US-based retail company has 250 stores in 30 states. Past compliance efforts have
included a silo-based approach with minimal oversight and the CEO acting as the
Compliance and Ethics Officer. One person in each state posted compliance-related
information sent from corporate, but there were no actual educational sessions. Policies
and procedures were developed by corporate and reviewed 5 years ago. The
organization has decided that a more dedicated approach is needed and hires a
Compliance and Ethics Officer. Which of the following actions should the new
Compliance and Ethics Officer take FIRST?
A.) Conduct a compliance and ethics risk assessment
B.) Review organization-wide compliance policies
C.) Perform a statistically valid compliance audit
D.) Distribute a compliance training packet to employees - Answer - Conduct a
compliance and ethics risk assessment
, An employee discloses that a supervisor has been verbally abusive. The same
supervisor has also been sexually harassing several employees in his department. The
compliance program requires that findings of harassment be documented and
forwarded by the compliance and ethics professional to the CEO with a
recommendation for appropriate discipline. Counsel advises that no report be written
because of possible litigation. The compliance and ethics professional's BEST course of
action is to... - Answer - Ask counsel to prepare the written report
Which of the following is the BEST outcome of a compliance and ethics program? -
Answer - Mitigating risk
A compliance and ethics professional receives an anonymous complaint that an
employee is receiving gifts from a vendor. An investigation finds the employee is not in
violation of the current gift policy and the policy has not been reviewed in five years.
Which of the following is the compliance and ethics professional's MOST appropriate
action? - Answer - Benchmark for vendor relation best practices
A problem was found in a routine accounting audit. Corrective action was taken and the
policies and procedures were updated. Which of the following is the next step in the
audit process?
A) Report findings to the board of directors
B) Prepare the final summary and storage of the audit results
C) Review the process after a period of time to determine if the problem is resolved
D) Conduct a risk assessment to identify other possible issues. - Answer - Review the
process after a period of time to determine if the problem is resolved.
What is the first step in the audit process? - Answer - Identify a problem
What is the second step in the audit process? - Answer - Take corrective action
What is the third step in the audit process? - Answer - Update policies & procedures
What is the fourth step in the audit process? - Answer - Communicate changes(s) to
affected parties
What is the last step in the audit process? - Answer - Review process and
documentation after a period of time to ensure success.
If in the course of their work, CEPs become aware of any decision by their employing
organization which, if implemented, would constitute misconduct, the professional shall:
(A) refuse to consent to the decision
(B) escalate the matter, including the highest governing body, as appropriate
(C) if serious issues remain unresolved after exercising "a" and "b", consider
resignation; and
Questions with 100% Correct
Answers Graded A+
What are the 7 elements of a Compliance Program? - Answer - 1. Standards of
Conduct/Policies and Procedures, 2. Compliance Officer and Compliance Committee, 3.
Education/Training, 4. Monitoring/Auditing, 5. Reporting and Investigating, 6.
Enforcement and Discipline, 7. Response and Prevention
A CFO discovers the CEO is using company funds for personal expenses. The CFO
buried this information in the company's financial reports. The compliance and ethics
professional learns of the situation through the company's hotline. Which of the
following should be the compliance and ethics professional's FIRST response? -
Answer - Investigate to verify the allegation
Which of the following is the MOST effective way a compliance and ethics professional
can evaluate compliance and ethics audit findings? - Answer - Conduct trend analysis
on identified risk areas and benchmark results against industry standards
Which of the following BEST describes the primary role of people of a compliance and
ethics professional? - Answer - Promotes a culture of compliance and ethics throughout
the organization
A US-based retail company has 250 stores in 30 states. Past compliance efforts have
included a silo-based approach with minimal oversight and the CEO acting as the
Compliance and Ethics Officer. One person in each state posted compliance-related
information sent from corporate, but there were no actual educational sessions. Policies
and procedures were developed by corporate and reviewed 5 years ago. The
organization has decided that a more dedicated approach is needed and hires a
Compliance and Ethics Officer. Which of the following actions should the new
Compliance and Ethics Officer take FIRST?
A.) Conduct a compliance and ethics risk assessment
B.) Review organization-wide compliance policies
C.) Perform a statistically valid compliance audit
D.) Distribute a compliance training packet to employees - Answer - Conduct a
compliance and ethics risk assessment
, An employee discloses that a supervisor has been verbally abusive. The same
supervisor has also been sexually harassing several employees in his department. The
compliance program requires that findings of harassment be documented and
forwarded by the compliance and ethics professional to the CEO with a
recommendation for appropriate discipline. Counsel advises that no report be written
because of possible litigation. The compliance and ethics professional's BEST course of
action is to... - Answer - Ask counsel to prepare the written report
Which of the following is the BEST outcome of a compliance and ethics program? -
Answer - Mitigating risk
A compliance and ethics professional receives an anonymous complaint that an
employee is receiving gifts from a vendor. An investigation finds the employee is not in
violation of the current gift policy and the policy has not been reviewed in five years.
Which of the following is the compliance and ethics professional's MOST appropriate
action? - Answer - Benchmark for vendor relation best practices
A problem was found in a routine accounting audit. Corrective action was taken and the
policies and procedures were updated. Which of the following is the next step in the
audit process?
A) Report findings to the board of directors
B) Prepare the final summary and storage of the audit results
C) Review the process after a period of time to determine if the problem is resolved
D) Conduct a risk assessment to identify other possible issues. - Answer - Review the
process after a period of time to determine if the problem is resolved.
What is the first step in the audit process? - Answer - Identify a problem
What is the second step in the audit process? - Answer - Take corrective action
What is the third step in the audit process? - Answer - Update policies & procedures
What is the fourth step in the audit process? - Answer - Communicate changes(s) to
affected parties
What is the last step in the audit process? - Answer - Review process and
documentation after a period of time to ensure success.
If in the course of their work, CEPs become aware of any decision by their employing
organization which, if implemented, would constitute misconduct, the professional shall:
(A) refuse to consent to the decision
(B) escalate the matter, including the highest governing body, as appropriate
(C) if serious issues remain unresolved after exercising "a" and "b", consider
resignation; and
