Audit and Reporting Flashcards
7 cards from real CCEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Audit and Reporting flashcards as text
Under the Dodd-Frank Act, which behavior by an employer constitutes prohibited retaliation against a whistleblower?
Answer: Terminating, demoting, or harassing an employee for reporting potential securities violations
Dodd-Frank prohibits adverse employment actions—including termination, demotion, and harassment—taken against employees because they reported potential securities law violations.
Which metric would BEST measure the effectiveness of a compliance hotline over time?
Answer: Trends in report volume, substantiation rates, and time-to-close investigations
Tracking report volume trends, how many reports are substantiated, and how quickly investigations are resolved provides insight into hotline health and organizational ethics culture.
A compliance team is preparing to audit a third-party vendor. Which document most directly grants the right to conduct such an audit?
Answer: A contractual audit rights clause in the vendor agreement
An audit rights clause in the vendor contract is the legal mechanism that entitles the company to inspect the vendor's records and operations for compliance.
Which principle guides the frequency with which a compliance program should be audited?
Answer: Audit frequency should be commensurate with the organization's risk profile and any material changes in the environment
Risk-based audit scheduling ties audit frequency to the current risk landscape, ensuring higher-risk areas receive more frequent scrutiny as conditions change.
What is the purpose of audit 'workpapers' in a compliance audit?
Answer: To document the evidence gathered, procedures performed, and conclusions reached during the audit
Workpapers are the auditor's internal record of evidence, procedures, and conclusions, providing a trail that supports the audit report and demonstrates due professional care.
In a compliance investigation triggered by an audit finding, what is the role of attorney-client privilege?
Answer: It can protect communications between legal counsel and the organization during an investigation from compelled disclosure
Attorney-client privilege may protect confidential communications with counsel during an investigation, helping the organization conduct a candid internal inquiry without compelled disclosure.
Which practice helps ensure audit recommendations do not simply 'sit on the shelf' after a compliance audit?
Answer: Establishing a formal corrective action tracking system with assigned owners and deadline monitoring
A corrective action tracking system assigns ownership, sets deadlines, and monitors completion, ensuring audit recommendations are actually implemented rather than ignored.