CCEP Regulatory Frameworks 2

Question 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?

Accepted Answer

Section 404

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 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?

Accepted Answer

30 calendar days

Answer

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

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Regulatory Frameworks 2