CCO Corporate Governance and Board Relations

Question 1

What is the primary governance role of the Board of Directors regarding compliance?

Accepted Answer

Setting the ethical tone, overseeing the compliance program, and holding management accountable

Answer

Day-to-day management of compliance operations

Answer

Drafting individual compliance policies

Answer

Conducting internal investigations personally

Question 2

What is the purpose of an Audit Committee in corporate governance?

Accepted Answer

To oversee financial reporting, internal controls, risk management, and the internal audit function on behalf of the Board

Answer

To perform the annual external audit

Answer

To manage relationships with external auditors only

Answer

To approve the company's budget

Question 3

What does the Sarbanes-Oxley Act (SOX) require of public company CEOs and CFOs?

Accepted Answer

Personal certification of the accuracy of financial statements and the effectiveness of internal controls

Answer

Annual ethics training completion

Answer

Quarterly reporting to the SEC on personal transactions

Answer

Publication of their personal financial statements

Question 4

What is an independent director in corporate governance?

Accepted Answer

A board member who has no material relationship with the company that could influence their judgment

Answer

A director who works full-time at the company

Answer

A director appointed by the government

Answer

A non-voting advisory board member

Question 5

What is the 'business judgment rule' in corporate governance?

Accepted Answer

A legal presumption that directors acted on an informed basis, in good faith, and in the honest belief that decisions were in the company's best interest

Answer

A rule requiring board members to have business experience

Answer

A requirement to maximize short-term profits

Answer

A rule that limits board decisions to pre-approved categories

Question 6

What is a compliance committee at the board level?

Accepted Answer

A board or management committee specifically tasked with overseeing the compliance program's design and effectiveness

Answer

A management team that handles daily compliance tasks

Answer

An external advisory group

Answer

A regulatory body representative