CERTIFIED COMPLIANCE AND ETHICS PROFESSIONAL (CCEP)
CERTIFICATION EXAM, PRACTICE EXAM AND STUDY GUIDE
LATEST 2024 ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
1. Which of the following BEST describes the purpose of training
based upon risk assessment findings?
A.) Reducing the organization's legal exposure
B.) Educating employees on laws and regulations
C.) Educating the board on the compliance program
D.) Reducing the organization's insurance premiums: A. Reducing the organi-
zation's legal exposure
2. A compliance and ethics professional investigates a report of sexual
ha- rassment. The incident does not constitute sexual harassment, but
reveals the employee's misunderstandings of the harassment policy.
Which of the following should be the FIRST step in a corrective action
plan?
A.) Consult outside counsel
B.) Disclose the incident to the EEOC
C.) Provide education and training on the policy
D.) Survey employees' understanding of the policy: C.) Provide education and
training on the policy
3. Which of the following provides guidance for the development of a
compli- ance program?
A.) Sarbanes-Oxley Act
B.) Federal Sentencing Guidelines
C.) Security and Exchange Commission
D.) Office for Civil Rights: B.) Federal Sentencing Guidelines
4. Which of the following is the BEST outcome of a compliance
and ethics program?
A.) Mitigating risk
,B.) Identifying risk
C.) Prioritizing risk
D.) Documenting risk: A.) Mitigating risk
5. Training on price-fixing is MOST important for which of the following
staff?
A.) Management
B.) Sales
C.) Marketing
D.) Accounting: B.) Sales
6. A compliance and ethics program should include:
1. An employee benefits handbook
2. Document retention guidelines
3. Policies regarding confidentiality
4. A statement about the organization's culture
A.) 1,2, and 3 only
B.) 1, 2, and 4 only
C.) 1, 3, and 4 only
D.) 2, 3, and 4 only: D.) 2, 3, and 4 only
7. 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: A.) Conduct a com-
,pliance and ethics risk assessment
8. An employee discloses to counsel and the compliance and ethics
profes- sional that a supervisor has been verbally abusive. An investigation
finds that 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:
A.) Follow counsel's advice
B.) Submit a written report
C.) Ask counsel to prepare the written report
D.) Recommend disciplinary action against counsel: C.) Ask counsel to prepare
the written report
Even though counsel advises to not submit a report Compliance can
suggest alternatives to ensure the compliance program is being
followed. By asking counsel to prepare the written report it is then
protected by attorney-client privilege and follows the compliance
program.
9. A compliance and ethics professional is evaluating an organization's
em- ployee handbook. A conflict exists between the Code of Conduct and
the employee handbook. HR is responsible for the employee handbook. The
doc- uments have been approved by the board of directors. Which of the
following actions should the compliance and ethics professional take
FIRST?
A.) Post revised documents on the organization's website
B.) Schedule a time during the next board meeting to present revised docu- ments
C.) Schedule a meeting with HR, general counsel, and the board to discuss the
issue
D.) Contact HR to determine if the inconsistencies between the documents can
be resolved: D.) Contact HR to determine if the inconsistencies between
the documents can be resolved
, Escalate to the lowest level when possible
10. A company's Code of Conduct has not been reviewed for over 2 years.
HR recommended adding content that would double its size. The
compliance committee members expressed concern that adding a
significant amount of content could negatively impact its effectiveness.
Which of the following is the compliance and ethics professional's NEXT
step before consolidating revisions?
A.) Request guidance from the board of directors
B.) Contract with a consultant to rewrite the Code of Conduct
C.) Compare the content outline with other organizations
D.) Rewrite the content based on Federal Sentencing Guidelines: C.) Compare
the content outline with other organizations
Benchmarking
11. Which of the following is the MOST convincing demonstration of
the effectiveness of a company's ethical standards?
A.) Implementation of an anonymous reporting and feedback system
B.) Termination of an executive who embezzled a small amount of money
C.) Suspension of an employee who failed to complete compliance training
D.) Production of the organization's professional printed Code of Conduct: B.)
Termination of an executive who embezzled a small amount of money
12. A compliance and ethics professional has developed a policy intended
to prohibit employees from paying, offering, or promising to pay officials of
other countries for the purpose of obtaining or maintaining business. This
policy will help the organization comply with the:
A.) Sherman Act
B.) USA Patriot Act
C.) Anti-Money Laundering Act
D.) Foreign Corrupt Practices Act: D.) Foreign Corrupt Practices Act
13. A company receives a federal subpoena from the government
CERTIFICATION EXAM, PRACTICE EXAM AND STUDY GUIDE
LATEST 2024 ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
1. Which of the following BEST describes the purpose of training
based upon risk assessment findings?
A.) Reducing the organization's legal exposure
B.) Educating employees on laws and regulations
C.) Educating the board on the compliance program
D.) Reducing the organization's insurance premiums: A. Reducing the organi-
zation's legal exposure
2. A compliance and ethics professional investigates a report of sexual
ha- rassment. The incident does not constitute sexual harassment, but
reveals the employee's misunderstandings of the harassment policy.
Which of the following should be the FIRST step in a corrective action
plan?
A.) Consult outside counsel
B.) Disclose the incident to the EEOC
C.) Provide education and training on the policy
D.) Survey employees' understanding of the policy: C.) Provide education and
training on the policy
3. Which of the following provides guidance for the development of a
compli- ance program?
A.) Sarbanes-Oxley Act
B.) Federal Sentencing Guidelines
C.) Security and Exchange Commission
D.) Office for Civil Rights: B.) Federal Sentencing Guidelines
4. Which of the following is the BEST outcome of a compliance
and ethics program?
A.) Mitigating risk
,B.) Identifying risk
C.) Prioritizing risk
D.) Documenting risk: A.) Mitigating risk
5. Training on price-fixing is MOST important for which of the following
staff?
A.) Management
B.) Sales
C.) Marketing
D.) Accounting: B.) Sales
6. A compliance and ethics program should include:
1. An employee benefits handbook
2. Document retention guidelines
3. Policies regarding confidentiality
4. A statement about the organization's culture
A.) 1,2, and 3 only
B.) 1, 2, and 4 only
C.) 1, 3, and 4 only
D.) 2, 3, and 4 only: D.) 2, 3, and 4 only
7. 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: A.) Conduct a com-
,pliance and ethics risk assessment
8. An employee discloses to counsel and the compliance and ethics
profes- sional that a supervisor has been verbally abusive. An investigation
finds that 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:
A.) Follow counsel's advice
B.) Submit a written report
C.) Ask counsel to prepare the written report
D.) Recommend disciplinary action against counsel: C.) Ask counsel to prepare
the written report
Even though counsel advises to not submit a report Compliance can
suggest alternatives to ensure the compliance program is being
followed. By asking counsel to prepare the written report it is then
protected by attorney-client privilege and follows the compliance
program.
9. A compliance and ethics professional is evaluating an organization's
em- ployee handbook. A conflict exists between the Code of Conduct and
the employee handbook. HR is responsible for the employee handbook. The
doc- uments have been approved by the board of directors. Which of the
following actions should the compliance and ethics professional take
FIRST?
A.) Post revised documents on the organization's website
B.) Schedule a time during the next board meeting to present revised docu- ments
C.) Schedule a meeting with HR, general counsel, and the board to discuss the
issue
D.) Contact HR to determine if the inconsistencies between the documents can
be resolved: D.) Contact HR to determine if the inconsistencies between
the documents can be resolved
, Escalate to the lowest level when possible
10. A company's Code of Conduct has not been reviewed for over 2 years.
HR recommended adding content that would double its size. The
compliance committee members expressed concern that adding a
significant amount of content could negatively impact its effectiveness.
Which of the following is the compliance and ethics professional's NEXT
step before consolidating revisions?
A.) Request guidance from the board of directors
B.) Contract with a consultant to rewrite the Code of Conduct
C.) Compare the content outline with other organizations
D.) Rewrite the content based on Federal Sentencing Guidelines: C.) Compare
the content outline with other organizations
Benchmarking
11. Which of the following is the MOST convincing demonstration of
the effectiveness of a company's ethical standards?
A.) Implementation of an anonymous reporting and feedback system
B.) Termination of an executive who embezzled a small amount of money
C.) Suspension of an employee who failed to complete compliance training
D.) Production of the organization's professional printed Code of Conduct: B.)
Termination of an executive who embezzled a small amount of money
12. A compliance and ethics professional has developed a policy intended
to prohibit employees from paying, offering, or promising to pay officials of
other countries for the purpose of obtaining or maintaining business. This
policy will help the organization comply with the:
A.) Sherman Act
B.) USA Patriot Act
C.) Anti-Money Laundering Act
D.) Foreign Corrupt Practices Act: D.) Foreign Corrupt Practices Act
13. A company receives a federal subpoena from the government
