CCM Documentation & Record Management 2 — Questions and Answers
Question 1: Under the Sarbanes-Oxley Act, how long must audit-related records be retained by public companies?
- 3 years
- 5 years
- 7 years (Correct answer)
- 10 years
Correct answer: 7 years
SOX Section 802 requires audit firms and their clients to retain audit and review workpapers for 7 years.
Question 2: Which metadata element is MOST critical when establishing the authenticity of an electronic record?
- File size
- Creation timestamp and author (Correct answer)
- Font type used in the document
- Number of revisions
Correct answer: Creation timestamp and author
Creation timestamp and author metadata are the primary attributes used to establish the authenticity and provenance of an electronic record.
Question 3: A compliance officer discovers that employees are storing sensitive compliance documents in personal cloud storage. What is the PRIMARY risk this creates?
- Increased storage costs
- Loss of organizational control and data governance (Correct answer)
- Slower document retrieval times
- Duplicate file creation
Correct answer: Loss of organizational control and data governance
Personal cloud storage removes organizational control over access, retention, and deletion, undermining data governance and compliance obligations.
Question 4: What is a 'litigation hold' (also called a legal hold) in the context of records management?
- A court order to seal court records
- A directive suspending normal retention/disposal schedules for potentially relevant records (Correct answer)
- A method to encrypt sensitive documents during a lawsuit
- A system for tagging documents as confidential
Correct answer: A directive suspending normal retention/disposal schedules for potentially relevant records
A litigation hold suspends the routine destruction of records that may be relevant to anticipated or pending litigation, regulatory inquiries, or audits.
Question 5: Which principle states that records should be maintained in the context in which they were created to preserve their meaning?
- Chain of custody
- Provenance (Correct answer)
- Records integrity
- Version control
Correct answer: Provenance
The principle of provenance requires that records be kept together with other records from the same creator to preserve their original context and meaning.
Question 6: An organization uses a document management system that automatically applies retention rules. What term describes this automated process?
- Document indexing
- Records disposition
- Automated records scheduling (Correct answer)
- Digital archiving
Correct answer: Automated records scheduling
Automated records scheduling uses software to apply pre-defined retention and disposition rules without manual intervention, improving consistency and compliance.
Question 7: Which of the following best describes 'chain of custody' in compliance documentation?
- The legal process for transferring document ownership
- A chronological record documenting who handled evidence or records and when (Correct answer)
- A method of encrypting documents during transfer
- The hierarchy of approvals required for document creation
Correct answer: A chronological record documenting who handled evidence or records and when
Chain of custody is a documented trail showing the sequence of custody, control, transfer, and analysis of records or evidence to maintain integrity.
CCM Documentation & Record Management 2
Under the Sarbanes-Oxley Act, how long must audit-related records be retained by public companies?