APP Regulatory Compliance & Standards 2

Question 1

Under the Federal Acquisition Regulation (FAR), which clause requires contractors to flow down certain requirements to their subcontractors?

Accepted Answer

FAR 52.244-6 Subcontracts for Commercial Items

Answer

FAR 52.244-6 mandates that prime contractors include specific clauses in subcontracts for commercial items, ensuring regulatory flow-down.

Question 2

Which U.S. regulation prohibits federal contractors from engaging in human trafficking activities in their supply chains?

Accepted Answer

Executive Order 13627 and FAR 52.222-50

Answer

Executive Order 13627, implemented through FAR 52.222-50, prohibits federal contractors and subcontractors from engaging in human trafficking.

Question 3

The Sarbanes-Oxley Act (SOX) Section 404 most directly impacts purchasing departments by requiring:

Accepted Answer

Internal controls over financial reporting including procurement processes

Answer

SOX Section 404 requires management to assess and attest to the effectiveness of internal controls over financial reporting, which includes procurement and purchasing controls.

Question 4

Which standard establishes a quality management system specifically for the aerospace industry that purchasing professionals must understand when sourcing aerospace components?

Accepted Answer

AS9100

Answer

AS9100 is the quality management system standard specifically developed for the aerospace industry, building upon ISO 9001 with additional aerospace-specific requirements.

Question 5

A purchasing professional discovers that a supplier's country of origin has been sanctioned by OFAC. The best immediate action is to:

Accepted Answer

Halt purchasing and consult legal counsel immediately

Answer

OFAC sanctions carry severe civil and criminal penalties, so halting transactions and consulting legal counsel immediately is the required response.

(APP) Accredited Purchasing Practitioner Certification Practice Test

(APP) Accredited Purchasing Practitioner Certification Practice Test

APP Regulatory Compliance & Standards 2