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Regulatory Frameworks Flashcards

7 cards from real CCEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Frameworks flashcards as text

  1. Under the Sarbanes-Oxley Act (SOX), which section specifically requires management to assess and report on the effectiveness of internal controls over financial reporting?

    Answer: Section 404

    SOX Section 404 requires management to assess internal controls over financial reporting and have those assessments attested to by an external auditor.

  2. Which U.S. federal agency is primarily responsible for enforcing the Foreign Corrupt Practices Act (FCPA)?

    Answer: Department of Justice (DOJ) and Securities and Exchange Commission (SEC)

    The FCPA is jointly enforced by the DOJ (criminal provisions) and the SEC (civil provisions for issuers).

  3. The EU General Data Protection Regulation (GDPR) applies to U.S. companies in which scenario?

    Answer: Whenever the company processes personal data of EU residents, regardless of company location

    GDPR has extraterritorial reach and applies to any organization processing personal data of EU residents, even if the organization is outside the EU.

  4. Which of the following best describes the role of a 'safe harbor' provision in regulatory frameworks?

    Answer: A legal protection shielding parties from liability when they comply with specified conditions

    Safe harbor provisions protect parties from liability when they follow defined procedures or meet certain criteria, incentivizing compliant behavior.

  5. Under the Bank Secrecy Act (BSA), financial institutions are required to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?

    Answer: 30 calendar days

    The BSA requires financial institutions to file a SAR within 30 calendar days of the date of initial detection of suspicious activity.

  6. The concept of 'regulatory arbitrage' refers to which practice?

    Answer: Exploiting differences in regulations across jurisdictions to minimize compliance burdens

    Regulatory arbitrage occurs when firms structure their activities or locate operations to take advantage of lighter regulatory requirements in certain jurisdictions.

  7. Which federal law established the Office of Inspector General (OIG) system across U.S. federal agencies?

    Answer: Inspector General Act of 1978

    The Inspector General Act of 1978 established independent OIGs within federal agencies to conduct audits and investigations to promote efficiency and prevent fraud.