Question

QUESTION 1

1. In order to meet generally accepted definition of whistleblowing the following aspects must be in place.

	I.	An illegal or fraudulent act must be reported by any person and reported to someone in the position to help resolve the situation.
	II.	None of the above
	III.	An illegal or fraudulent act must be reported by a victim and reported to the regulatory body.
	IV.	An illegal or fraudulent act must be reported by any person and must reported to the regulatory body.

3 points   

QUESTION 2

1. There are fundamental differences between internal whistleblowing vs external whistleblowing. Which of the following statement most accurately describes the difference

	I.	External whistleblowing is more effective in bringing about change because issues are reported to regulatory bodies.
	II.	The primary difference is in the way complaints are reported such as anonymous and confidential reporting systems.
	III.	Internal whistleblowing involves the complainant reporting issues using the entity’s own reporting mechanisms, whereas external whistleblower feel the need to report outside the entity
	IV.	All of the above.

3 points   

QUESTION 3

1. Whistleblowers have several methods in which to report wrong doing. The following are all common mechanisms to report except for

	I.	Internal web reporting
	II.	In person
	III.	Anonymous phone hotline
	IV.	US postal mail

3 points   

QUESTION 4

1. You are the Chief Internal Auditor for a publicly traded corporation. You are responsible for managing the whistleblower hotline. You notice a new report has been received. The report includes allegations of financial impropriety committed by the CFO. What is the most appropriate course of action?  

	I.	Review the case report, assign an independent investigator and review his findings upon completion.
	II.	Report the complaint immediately to the audit committee.
	III.	Verify the authenticity by identifying the whistleblower.
	IV.	All of the above

Answer 1

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QUESTION 1

1. In order to meet generally accepted definition of whistleblowing the following aspects must be in place.

Answer: An illegal or fraudulent act must be reported by any person and reported to someone in the position to help resolve the situation.

Explanation: Whistleblowing is a process wherein a wrongdoing is reported either internally or externally. Hence, it is not necessary that reporting must be only to regulatory bodies. Wrongdoing can be reported internally as well. Hence, it must be reported to a person who is in position to help resolve the situation.

Whistleblowing can be done by any person who is aware of the wrongdoing. It need not be directly a victim.

Hence, keeping all these points in mind, option I is the correct option.

QUESTION 2

1. There are fundamental differences between internal whistleblowing vs external whistleblowing. Which of the following statement most accurately describes the difference

Answer: Internal whistleblowing involves the complainant reporting issues using the entity’s own reporting mechanisms, whereas external whistleblower feel the need to report outside the entity

Explanation: As the name suggests, in external whistleblowing the wrongdoing is reported to person outside the entity such as regulators. However, in the internal whistleblowing, the wrongdoing is reported within the entity channels such as supervisors, managers etc.

Hence, this option most accurately describes the difference between internal whisteblowing and external whistleblowing.

QUESTION 3

1. Whistleblowers have several methods in which to report wrong doing. The following are all common mechanisms to report except for

Answer: US postal mail

Explanation: In order to report wrongdoing, several communication channels are provided to the whistleblower. Generally, companies prefer that these channels are internal to the company without involving third party agencies. Hence, in the given case all other channels such as Internal web reporting, in person and anonymous phone hotline are internal channels wheras reporting via US postal mail is an external channel. Hence, it is not a common measure of reporting wrong doing.

QUESTION 4

1. You are the Chief Internal Auditor for a publicly traded corporation. You are responsible for managing the whistleblower hotline. You notice a new report has been received. The report includes allegations of financial impropriety committed by the CFO. What is the most appropriate course of action?

Answer: All the above

Explanation: All the above approaches are used to deal with a whistleblower complaint. Assigning an independent reporter, reporting the matter to auditing committee and identidying the authenticity of complaint - all of these are appropriate courses of action in order to resolve the situation at earliest.

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