CCT Compliance Oversight Agencies 3 — Questions and Answers
Question 1: Which federal agency oversees compliance with the Community Reinvestment Act (CRA) for state-chartered banks that are NOT members of the Federal Reserve System?
- OCC
- Federal Reserve
- FDIC (Correct answer)
- CFPB
Correct answer: FDIC
The FDIC examines state-chartered non-member banks for CRA compliance, while the Fed covers state member banks and the OCC covers national banks.
Question 2: A company subject to SEC reporting requirements discovers a material weakness in internal controls. Under SOX Section 404, which agency reviews the resulting disclosures?
- PCAOB
- FASB
- SEC (Correct answer)
- AICPA
Correct answer: SEC
The SEC reviews and enforces SOX Section 404 disclosures about internal control over financial reporting filed by public companies.
Question 3: Which agency conducts examinations of registered investment advisers with assets under management of $100 million or more?
- FINRA
- State securities regulators
- SEC (Correct answer)
- OCC
Correct answer: SEC
Investment advisers managing $100 million or more in assets must register with and are examined by the SEC.
Question 4: The Occupational Safety and Health Administration (OSHA) falls under which cabinet department?
- Department of Commerce
- Department of Labor (Correct answer)
- Department of Health and Human Services
- Department of the Interior
Correct answer: Department of Labor
OSHA is an agency within the U.S. Department of Labor, responsible for workplace safety standards and enforcement.
Question 5: Which agency enforces the Foreign Corrupt Practices Act (FCPA) jointly with the Department of Justice?
- FinCEN
- OFAC
- SEC (Correct answer)
- State Department
Correct answer: SEC
The SEC and DOJ share FCPA enforcement jurisdiction — the SEC focuses on civil enforcement for issuers while DOJ handles criminal prosecution.
Question 6: Which oversight body registers and inspects public company auditors and has authority to set auditing standards?
- AICPA
- FASB
- PCAOB (Correct answer)
- GAO
Correct answer: PCAOB
The Public Company Accounting Oversight Board (PCAOB), created by SOX, registers and inspects accounting firms that audit public companies.
Question 7: A bank holding company's compliance team needs guidance on Volcker Rule compliance. Which agencies jointly issued Volcker Rule regulations?
- OCC and FDIC only
- SEC and CFTC only
- Five agencies including Fed, OCC, FDIC, SEC, and CFTC (Correct answer)
- Federal Reserve and OCC only
Correct answer: Five agencies including Fed, OCC, FDIC, SEC, and CFTC
The Volcker Rule was implemented jointly by five federal agencies: the Fed, OCC, FDIC, SEC, and CFTC, reflecting its broad scope.
CCT Compliance Oversight Agencies 3
Which federal agency oversees compliance with the Community Reinvestment Act (CRA) for state-chartered banks that are NOT members of the Federal Reserve System?