Practice Test Geeks(CCEP) Certified Compliance and Ethics Professional Practice Test
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Ethics Program Management 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 Ethics Program Management flashcards as text

  1. Which of the following BEST explains the concept of 'residual risk' in compliance program design?

    Answer: The risk that remains after controls are applied

    Residual risk is the level of risk that remains after the organization's controls and mitigating measures have been applied to the inherent risk.

  2. A pharmaceutical company's compliance program includes a 'No-Contact' policy for interactions with government payers. This policy is an example of which program element?

    Answer: Preventive control

    A No-Contact policy prevents prohibited interactions before they occur, making it a preventive control rather than a detective or corrective measure.

  3. When conducting third-party due diligence, which red flag should MOST concern a compliance officer evaluating a new distributor?

    Answer: The distributor requests a higher-than-market commission in a high-corruption jurisdiction

    An above-market commission request in a high-corruption environment is a classic red flag suggesting the extra margin may fund improper payments to officials.

  4. Which of the following is an example of a 'detective control' in a compliance program?

    Answer: Conducting periodic audits of expense reports

    Periodic audits of expense reports detect misconduct after the fact rather than preventing it, making them a detective control.

  5. A compliance program uses data analytics to flag unusual transaction patterns for review. This practice BEST supports which program function?

    Answer: Proactive risk monitoring and detection

    Using data analytics to identify anomalous patterns is a proactive monitoring technique that strengthens the program's detection capabilities.

  6. An organization is developing a compliance risk assessment. Which step should come FIRST?

    Answer: Identifying the universe of applicable laws and regulations

    Before risks can be ranked or controlled, the organization must first identify all applicable legal and regulatory requirements to define the scope of potential compliance risks.

  7. Which of the following MOST accurately describes 'micro-cultures' in the context of ethics program management?

    Answer: Sub-group norms within teams or business units that may diverge from enterprise values

    Micro-cultures are the informal norms and behaviors that develop within specific teams or units, which may support or undermine the broader organizational ethics culture.