CCA CCA Ethics & Corporate Governance 3

Question 1

What is the purpose of the COSO Enterprise Risk Management (ERM) framework?

Accepted Answer

To provide a framework for organizations to align risk appetite with strategy, manage risk, and achieve objectives

Answer

To set minimum capital requirements for financial institutions

Answer

To establish external auditing standards for public companies

Answer

To standardize financial reporting for non-profit organizations

Question 2

Which of the following is an example of an ethical dilemma a management accountant might face?

Accepted Answer

Being pressured by management to record revenue prematurely to meet quarterly earnings targets

Answer

Choosing between FIFO and LIFO for inventory costing

Answer

Selecting a depreciation method for a new asset

Answer

Deciding whether to hire an external tax advisor

Question 3

Under the Foreign Corrupt Practices Act (FCPA), which two main provisions apply to US companies?

Accepted Answer

Anti-bribery provisions and accounting/recordkeeping provisions

Answer

Anti-bribery provisions and anti-money laundering provisions

Answer

Export control provisions and anti-bribery provisions

Answer

SEC registration provisions and anti-bribery provisions

Question 4

What is 'tone at the top' in the context of corporate ethics?

Accepted Answer

The ethical culture and values set by senior management and the board that influence behavior throughout the organization

Answer

The highest compensation paid to top executives

Answer

The board's formal code of conduct document

Answer

The auditor's assessment of management integrity

Question 5

Which action by a corporate accountant would violate the IMA's confidentiality standard?

Accepted Answer

Sharing non-public financial forecasts with a personal stock broker to trade on the information

Answer

Reporting a material weakness to the audit committee

Answer

Preparing an internal report on cost reduction opportunities

Answer

Declining to sign a management representation letter with inaccuracies

Question 6

What is the primary purpose of a corporate code of ethics?

Accepted Answer

To articulate the organization's values, standards, and expectations for ethical behavior by all employees

Answer

To replace legal compliance requirements with voluntary standards

Answer

To establish compensation benchmarks for executive officers

Answer

To satisfy external auditor requirements under GAAS