CCEP Flashcards
What do compliance and ethics programs do? (2 things)
(1) Prevent and detect misconduct at and by organizations; and (2) Promote ethical business environments
Compliance and ethics programs serve a critical role in helping to _____________ and _____________ misconduct at and by organizations, and to __________________ ethical business environments.
Prevent, Detect, and Promote.
Development and implementation of effective compliance and ethics programs protect who (4 groups)?
Investors, consumers, the business community, and public at large.
Compliance services require the highest standards of:
Professionalism, Integrity & Competence
Code of Ethics expresses the profession’s recognition of its responsibilities to:
The general public, to employers and clients, and to the profession.
Code of Ethics has been adopted by whom?
Society of Corporate Compliance and Ethics
Code of Ethics provides two kinds of standards:
(1) Principles and (2) Rules of Conduct
What are Principles?
Broad standards that provide a framework for the more detailed Rules of Conduct.
What are Rules of Conduct?
Rules of Conduct are specific standards that prescribe the minimum level of professional conduct expected of CEPs.
Both the ______________ and the___________________ are expected to comply with the Code.
Individual professional and professional community.
__________________ is provided for some Rules of Conduct.
Commentary
Employing organization includes:
the employing organization and clients
Law or Laws include:
All national, state, provincial, and local laws and regulations, court orders, and consent agreements
Misconduct includes:
Both illegal acts and unethical conduct
Highest governing body refers to:
The highest policy and decision-making authority in an
organization, such as the board of directors or trustees of an
organization
Principle I
Obligations to the Public
Principle II
Obligations to the Employing Organization
Principle III
Obligations to the Profession
(Principle I) In order to contribute to the public good, CEPs should:
(1) abide by and promote compliance with the spirit and letter of the law governing their employing organization’s conduct; and (2) exemplify the highest ethical standards in their professional conduct.
CEPs shall not _____, _______, or ________ in misconduct.
Aid, abet, or participate.
CEPs shall take _________________________ as are necessary to prevent misconduct by their employing organizations.
Such steps.
CEPs must exercise _______ ___________ in responding to or cooperating with all official and legitimate government investigations of or inquiries concerning their employing organization.
sound judgment. You may never lie or obstruct in an investigation!
If CEPS become aware of misconduct, the professional shall:
(1) refuse to consent; (2) escalate the matter, including to the highest governing body; (3) consider resignation if the prior options do not work; and (4) report the decision to public officials when required by law.
(Principle II) CEPs should:
(1) serve their employing organizations with the highest sense of integrity; (2) exercise unprejudiced and unbiased judgment on their behalf; and (3) promote effective compliance and ethics programs.
CEPs must be ___________, _____________, and __________________.
Timely, competent, and professional.
CEPs shall ensure to the best of their abilities that employing organizations comply with all relevant laws.
True.
CEPs exercise a leadership role in compliance assurance and employees have no responsibility to ensure compliance.
False. All employees have the responsibility to ensure compliance.
CEPs shall investigate with appropriate due diligence all issues, information, reports, and/or conduct that relates to actual or suspected misconduct, whether past, current, or prospective.
True.
If Legal is responsible for investigating suspected misconduct, CEPs can report suspected misconduct to Legal and satisfy their responsibilities.
True.
CEPs are not required to keep senior management and the highest governing body informed of the status of the compliance and ethics program, both as to the implementation of the program and areas of compliance risk.
False. Senior management and highest governing body must be kept informed.
CEPs shall not aid or abet retaliation against any employee who reports actual, potential or suspected misconduct.
True.
CEPs shall strive to implement _________ that ensure the protection from retaliation of any employee who reports actual, potential, or suspected misconduct.
Implement
CEPs shall carefully guard against _____________________________ obtained in the course of their professional activities.
disclosure of confidential information
CEPs shall not mislead employing organizations about the ___________________________________________.
results that can be achieved through the use of their services.
(Principle III) CEPs should strive, through their actions, to uphold the _______________ and ____________ of the professional, to advance the effectiveness of compliance and ethics programs, and to promote professionalism in compliance and ethics.
integrity and dignity
CEPs shall pursue professional activities with honesty, fairness, and diligence.
True.
