10 exam-style questions with answers and explanations, straight from our 1,040-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free CCO questions are organized by exam domain, so you can see how each part of the Certified Cannabis Compliance Officer blueprint is tested. Reveal the answer and explanation under each question.
A dispensary owner wants the highest level of assurance an independent CCO can provide that the business complied with state regulations over the past year. Which type of engagement should the CCO perform?
Correct answer: B - An examination engagement, which provides reasonable assurance
A CCO determines that a cultivation operator has high inherent risk and weak internal controls. To keep overall audit risk acceptably low, the CCO must adjust the only component of the audit risk model within the CCO's direct control. That component is:
Correct answer: D - Detection risk, by performing more extensive testing
While auditing a dispensary, a CCO discovers a single sale of a low-cost product to an underage purchaser. The dollar amount is negligible, yet the CCO concludes the finding is material. The BEST justification is that:
Correct answer: C - The violation's nature, not its dollar amount, makes it material
A cannabis retailer subject to IRC §280E is preparing its federal income tax return. Under §280E, which cost may the business still subtract from gross receipts?
Correct answer: A - Cost of goods sold (COGS)
A cannabis cultivator receives a single cash payment from a distributor. At what point is the cultivator required to file IRS Form 8300?
Correct answer: A - When the payment exceeds $10,000
An investor agrees to acquire a 25% ownership interest in a licensed dispensary. To remain compliant, the operator must:
Correct answer: B - Obtain regulator approval before the change takes effect
During a dispensary audit, the CCO finds that the physical inventory of a product is 5% lower than the quantity recorded in the state seed-to-sale system, with no waste, destruction, or transfer records explaining the gap. The CCO's MOST appropriate initial conclusion is that the discrepancy:
Correct answer: D - Signals possible diversion that must be investigated and reported
While reviewing a dispensary's security system, a CCO notes that cameras cover the sales floor and entrances but not the limited-access room where product and cash are stored. This is BEST classified as:
Correct answer: B - A security deficiency in surveillance coverage
A CCO identifies a control gap that creates a reasonable possibility that material noncompliance will not be prevented or detected on a timely basis. How should the CCO classify and communicate it?
Correct answer: C - As a material weakness, communicated in writing to governance
Near the end of an engagement, a dispensary owner asks the CCO to leave a known labeling violation out of the final compliance report, arguing it would look bad to investors. According to the CCO Code of Ethics, the CCO should:
Correct answer: D - Decline and report the violation accurately in the report
The CCO exam also covers these domains. Drill them in the full free practice test:
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