CEA Regulatory Compliance & Legal Ethics Flashcards
6 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CEA Regulatory Compliance & Legal Ethics flashcards as text
What is the ethical concern with 'regulatory arbitrage' as practiced by some corporations?
Answer: It involves structuring activities to exploit gaps between regulatory regimes, prioritizing technical legality over the spirit of the law
Regulatory arbitrage may be technically legal but is ethically problematic because it violates the intent of protective regulations.
Under HIPAA, what ethical principle underpins the requirement to obtain patient authorization before using health information for marketing?
Answer: Respect for autonomy and informed consent
HIPAA's authorization requirement reflects the bioethical principle of autonomy — patients have the right to control how their personal health information is used.
What is the ethical responsibility of a compliance professional when a law is technically met but the regulated outcome harms the public?
Answer: Advise leadership to go beyond minimum legal compliance to address the harm, consistent with the organization's values
Ethics demands consideration of actual outcomes, not just technical compliance — compliance professionals must advise on the full ethical picture.
Which element is essential for a US organization's internal controls to support ethical financial reporting under SOX Section 404?
Answer: Management must assess the effectiveness of internal controls over financial reporting and have auditors attest to that assessment
SOX Section 404 requires management assessment and external auditor attestation of internal controls, creating dual accountability for honest reporting.
What does the 'reasonable person' standard represent in ethics and compliance contexts?
Answer: A benchmark for evaluating whether conduct meets the expectations of an ordinary, prudent person of good faith in similar circumstances
The reasonable person standard provides an objective benchmark to evaluate whether actions were ethical and prudent given the circumstances.
Why is document retention policy an ethics issue as well as a legal compliance issue?
Answer: Premature or selective destruction of records can obstruct justice and mislead regulators and stakeholders, reflecting bad faith
Selective or premature document destruction may be used to conceal misconduct, making records management a matter of organizational honesty and integrity.