ACFE Corporate Governance and Ethics 2

Question 1

Under the Sarbanes-Oxley Act, which officer must personally certify the accuracy of financial statements filed with the SEC?

Accepted Answer

Both CEO and CFO

Answer

SOX Section 302 requires both the CEO and CFO to personally certify the accuracy of financial reports filed with the SEC.

Question 2

What is the primary purpose of a board audit committee in the context of fraud prevention?

Accepted Answer

Overseeing financial reporting and internal controls

Answer

The audit committee oversees financial reporting integrity, internal controls, and the external audit process to detect and prevent fraud.

Question 3

Which governance concept refers to the separation of the roles of board chairman and chief executive officer?

Accepted Answer

Board duality

Answer

Board duality refers to having separate individuals serve as board chairman and CEO, which is considered a governance best practice to prevent power concentration.

Question 4

A company's code of ethics is MOST effective when it:

Accepted Answer

Is supported by tone at the top and enforced consistently

Answer

A code of ethics is most effective when leadership demonstrates commitment to it and violations are consistently addressed regardless of the offender's position.

Question 5

Which of the following best describes the concept of 'tone at the top' in corporate governance?

Accepted Answer

The ethical environment established by senior leadership through their actions

Answer

Tone at the top refers to the ethical culture and values that senior leadership models through their own conduct and decisions.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Corporate Governance and Ethics 2