ABC Regulatory Compliance & Standards 2

Question 1

Under the Sarbanes-Oxley Act, which communication responsibility falls on public company executives regarding financial disclosures?

Accepted Answer

Personally certify the accuracy of financial reports

Answer

SOX Section 302 requires CEOs and CFOs to personally certify the accuracy and completeness of financial disclosures filed with the SEC.

Question 2

A communicator drafting a press release for a publicly traded company discovers material non-public information. The correct action is to:

Accepted Answer

Consult legal counsel and delay release until proper disclosure procedures are followed

Answer

Material non-public information must be handled through proper Regulation FD and SEC disclosure procedures before public release.

Question 3

Which federal law most directly governs how organizations communicate about consumer privacy practices?

Accepted Answer

The Federal Trade Commission Act

Answer

The FTC Act prohibits unfair or deceptive acts, giving the FTC authority to enforce truthful privacy policy communications.

Question 4

When communicating about a product recall, which regulatory body's guidelines should a PR professional follow for consumer product safety issues?

Accepted Answer

CPSC

Answer

The Consumer Product Safety Commission (CPSC) sets recall communication requirements including timing, content, and distribution channels.

Question 5

The concept of 'reasonable accommodation' in workplace communications is most closely tied to which law?

Accepted Answer

The Americans with Disabilities Act

Answer

The ADA requires employers to communicate and provide reasonable accommodations for employees with disabilities.

(ABC) Accredited Business Communicator Practice Test