CFC CFC Corporate Governance & Ethics

Question 1

The Sarbanes-Oxley Act (SOX) Section 302 requires that the CEO and CFO of a public company do which of the following?

Accepted Answer

Personally certify the accuracy of financial reports filed with the SEC

Answer

SOX Section 302 requires the CEO and CFO to personally certify that periodic financial reports filed with the SEC fairly present the company's financial condition and that they have evaluated the effectiveness of disclosure controls.

Question 2

Under the Sarbanes-Oxley Act, which section requires management to assess and report on the effectiveness of internal controls over financial reporting?

Accepted Answer

Section 404

Answer

SOX Section 404 mandates that management assess the effectiveness of ICFR and that the external auditor attest to management's assessment for accelerated filers.

Question 3

Which of the following best describes the fiduciary duty of a corporate board of directors?

Accepted Answer

Acting in the best interests of shareholders with loyalty and care

Answer

Board members owe fiduciary duties — primarily the duty of care and duty of loyalty — requiring them to act in good faith and in the best interests of the corporation and its shareholders.

Question 4

What is the primary role of an audit committee within a corporate board?

Accepted Answer

Overseeing financial reporting, internal controls, and the external audit process

Answer

The audit committee is responsible for overseeing the integrity of financial reporting, monitoring internal control systems, and managing the relationship with external and internal auditors.

Question 5

Under the Foreign Corrupt Practices Act (FCPA), US companies are prohibited from doing which of the following?

Accepted Answer

Bribing foreign government officials to obtain or retain business

Answer

The FCPA prohibits US companies and their agents from making corrupt payments to foreign government officials to obtain or retain business contracts.

(CFC) Certified Financial Controller Practice Test

(CFC) Certified Financial Controller Practice Test

CFC CFC Corporate Governance & Ethics