CCT Ethics & Corporate Governance 3

Question 1

A company voluntarily discloses a potential FCPA violation to the DOJ before an investigation begins. What is the primary benefit of voluntary self-disclosure?

Accepted Answer

Eligibility for reduced penalties and cooperation credit

Answer

The DOJ's FCPA Corporate Enforcement Policy rewards voluntary self-disclosure with the possibility of a declination or significantly reduced penalties when combined with full cooperation.

Question 2

Which ethical theory holds that the morality of an action is determined solely by its consequences and outcomes?

Accepted Answer

Consequentialism

Answer

Consequentialism (including utilitarianism) judges actions as right or wrong based solely on the outcomes they produce.

Question 3

Under Sarbanes-Oxley Section 302, who must certify the accuracy of quarterly and annual financial reports?

Accepted Answer

CEO and CFO

Answer

SOX Section 302 requires the CEO and CFO to personally certify the accuracy of periodic financial reports filed with the SEC.

Question 4

A compliance officer learns an employee accessed a competitor's confidential files obtained through hacking. This situation most directly involves which ethical concept?

Accepted Answer

Misappropriation of confidential information

Answer

Accessing confidential files obtained through unauthorized means constitutes misappropriation of confidential information and potentially violates the Computer Fraud and Abuse Act.

Question 5

Which governance mechanism allows shareholders to remove underperforming directors without a contested election by majority vote?

Accepted Answer

Majority voting standard

Answer

Under a majority voting standard, directors who receive more 'withheld' votes than 'for' votes must tender their resignation for board consideration.

(CCT) Certified Compliance Technician Practice Test

(CCT) Certified Compliance Technician Practice Test

CCT Ethics & Corporate Governance 3