CCB Board Reporting & Governance 3

Question 1

When reporting a significant compliance breach to the board, which element is LEAST appropriate to include in the initial report?

Accepted Answer

Names of all employees investigated

Answer

Individual employee names should be omitted from initial board reports to protect privacy and preserve investigation integrity.

Question 2

A company's board is reviewing the compliance program effectiveness. Which indicator best demonstrates a 'strong compliance culture'?

Accepted Answer

High rate of voluntary self-reporting through the ethics hotline

Answer

High voluntary self-reporting rates indicate employees trust the system and feel safe reporting concerns, reflecting genuine cultural commitment to compliance.

Question 3

Which board committee typically has primary oversight responsibility for the compliance function?

Accepted Answer

Audit committee

Answer

The audit committee typically oversees compliance, internal controls, and risk management as part of its governance mandate.

Question 4

A CCB professional is asked to design a board dashboard. Which frequency is most appropriate for a compliance KPI dashboard?

Accepted Answer

Quarterly

Answer

Quarterly dashboards align with board meeting cycles and provide sufficient time for trends to emerge while keeping oversight current.

Question 5

Under the Sarbanes-Oxley Act, what must the CEO and CFO certify regarding internal controls in reports to the board and SEC?

Accepted Answer

That they have evaluated and reported on the effectiveness of internal controls over financial reporting

Answer

SOX Section 302 requires CEO and CFO certification that they have assessed and disclosed the effectiveness of disclosure controls and internal controls.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Board Reporting & Governance 3