US CMA Part 2 · Chapter 9 · Question 17 of 23
Which feature is most important for an effective whistleblower (ethics) hotline?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Reports can be made confidentially or anonymously, with protection against retaliation
Explanation
Employees are much more willing to report misconduct when they can do so confidentially or anonymously and trust that they will not suffer retaliation. Effective hotlines are often operated independently and report to the audit committee or a compliance officer, rather than to managers who may be implicated.
More Professional ethics MCQs
- Q19In addition to its anti-bribery rules, the US Foreign Corrupt Practices Act requires SEC-registered companies to:
- Q20A company evaluates its performance not only on profit but also on its impact on employees, communities and the natural environment. This…
- Q21Which of the following practices is MOST likely to undermine an organization's ethical culture even if a written code of conduct exists?
- Q22A US company discovers that one of its overseas suppliers uses child labor, which is not prohibited by local law in that country. Which…
- Q23Near year-end the controller of a division tells a management accountant to defer recording $250,000 of known expenses until next year so…
