CED Regulatory Compliance & Legal Framework 2

Question 1

Under the Sarbanes-Oxley Act, which section requires CEOs and CFOs to personally certify the accuracy of financial reports?

Accepted Answer

Section 302

Answer

Section 302 of SOX requires the principal executive and financial officers to personally certify financial reports filed with the SEC.

Question 2

A nonprofit executive director discovers a board member has a financial interest in a vendor seeking a contract. The FIRST required action is to:

Accepted Answer

Disclose the conflict and recuse the member from the vote

Answer

Proper conflict-of-interest management requires disclosure and recusal from decision-making, not automatic removal.

Question 3

Which federal law prohibits discrimination in employment based on disability and requires reasonable accommodations?

Accepted Answer

The Americans with Disabilities Act (ADA)

Answer

The ADA of 1990 prohibits disability-based employment discrimination and mandates reasonable accommodations for qualified individuals.

Question 4

An organization's whistleblower policy is MOST directly intended to:

Accepted Answer

Encourage reporting of legal violations without fear of retaliation

Answer

Whistleblower policies protect employees who report suspected illegal activity or misconduct from retaliation by their employer.

Question 5

Under HIPAA, a covered entity must provide breach notification to affected individuals within how many days of discovering a breach?

Accepted Answer

60 days

Answer

HIPAA requires covered entities to notify affected individuals within 60 days of discovering a breach of unsecured protected health information.

(CED) Certified Executive Director Practice Test