CFO CFO Corporate Governance & Compliance

Question 1

Which U.S. federal law requires CEOs and CFOs to personally certify the accuracy of financial reports filed with the SEC?

Accepted Answer

Sarbanes-Oxley Act (SOX)

Answer

Dodd-Frank Act

Answer

Securities Exchange Act of 1934

Answer

JOBS Act

Question 2

What is the primary role of an audit committee within a company's board of directors?

Accepted Answer

Oversee financial reporting and internal controls

Answer

Set executive compensation

Answer

Approve capital expenditures

Answer

Manage investor relations

Question 3

Under SOX Section 404, what must management annually assess and report on?

Accepted Answer

The effectiveness of internal controls over financial reporting

Answer

Executive pay ratios

Answer

Environmental compliance programs

Answer

Customer data privacy policies

Question 4

Which governance framework is most widely used to design and evaluate a company's internal control system?

Accepted Answer

COSO Framework

Answer

ISO 9001

Answer

Basel III

Answer

IFRS 15

Question 5

What does 'tone at the top' refer to in corporate governance?

Accepted Answer

The ethical climate set by senior leadership that influences organizational culture

Answer

Marketing messaging approved by the CEO

Answer

Board-level salary benchmarking

Answer

Annual shareholder communication strategy

Question 6

Which of the following best describes a 'material weakness' in internal controls?

Accepted Answer

A deficiency that results in a reasonable possibility of material misstatement going undetected

Answer

A minor clerical error in financial statements

Answer

An employee policy violation with no financial impact

Answer

An outdated IT system with no accounting integration