Crowe Training Good Compliance Culture

Which of the following makes for an effective control environment with regards to commitment to competenceas per COSO?(Choose one)

• Assure independence from management.

• Its culture is one in which quality and competence are openly valued.

• Reduce pressure to meet unrealistic performance targets.

• Increase interaction between senior management and operating management

To ensure a culture of compliance, which control is most important in the following list.(Choose one)

• Review the nature of business risk accepted.

• Create formal or informal job descriptions or other means of defining tasks that comprise particular jobs.

• Encourage independence from management.

• Remove incentives and temptations that prompt personnel to engage in fraudulent or unethical behaviour.

Soft controls are the intangible factors in an organisation that influence the behaviour of managers and employees. Which of the following are the soft controls( choose three)

• Openness to discussion of viewpoints, emotions, dilemmas and transgressions.

• Clarity for directors, managers and employees as to what constitutes desirable and undesirable behaviour.

• The objective of profit maximisation

• Role-modelling among administrators, management or immediate supervisors.

Compliance is not just the responsibility of the Compliance Officer, but also the responsibility of. (i) CEO (ii) directors (iii) employees

• (i) only

• (i) and (ii) only

• (i) and (iii) only

• (i), (ii), (iii)

Should employees who deliver significant financial results, exempt from the usual ethical rules? Choose the option that promotes good compliance culture.

• No employee is exempt from rules regardless of their earnings ability

• Successful employees should be given full support

• We need to balance their achievements with restrictions on them

Select the description that best describes an organisation's Risk and Compliance Department that promotes a Culture of Compliance?

• Risk and Compliance is under resourced and is regarded as a cost

• Risk and Compliance Reports are a standard Board agenda item

• Risk and Compliance has no direct access to senior management

What should the company's attitude be, toward employee complaints about unethical conduct, if there has to be a culture of Compliance?

• Employees do not make complaints as they are afraid of retribution

• Company has a virtual complaints and suggestion box where complaints can be made anonymously

• Employees can make complaints to their supervisor or to a more senior manager if they wish

Do you use mystery shoppers (or similar) to check on staff compliance with customer procedures? To build a culture of Compliance? Choose the correct option.

• No, we trust our staff to do the right thing

• Yes, it is an important monitoring tool we use to identify training needs

• Yes, we use it to discipline staff