CCCP Corporate Governance & Ethical Practices 3

Question 1

The 'duty of loyalty' requires corporate directors to:

Accepted Answer

Prioritize the corporation's interests over their personal interests

Answer

The duty of loyalty obligates directors to act in the corporation's best interest and avoid self-dealing or conflicts of interest.

Question 2

A compliance officer discovers that a senior vice president has been submitting fraudulent expense reports. The MOST appropriate immediate action is to:

Accepted Answer

Consult with HR and legal counsel, then follow the incident response protocol

Answer

Proper incident response requires coordination with HR and legal counsel to ensure legal obligations are met and the investigation is protected.

Question 3

Which body has primary responsibility for overseeing a public company's financial reporting integrity?

Accepted Answer

The audit committee

Answer

The audit committee is responsible for overseeing financial reporting, internal controls, and the relationship with external auditors.

Question 4

A 'clawback' policy in executive compensation is designed to:

Accepted Answer

Recover compensation paid based on subsequently restated financial results

Answer

Clawback policies allow companies to recoup incentive pay when financial results that triggered the pay are later found to be inaccurate.

Question 5

Under Sarbanes-Oxley Section 302, the CEO and CFO must certify that:

Accepted Answer

They have reviewed the report and it does not contain materially false statements

Answer

SOX 302 requires the CEO and CFO to personally certify that the quarterly or annual report does not contain material misstatements.

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP Corporate Governance & Ethical Practices 3