CGRC Compliance Programs 3

Question 1

Which regulatory framework requires publicly traded US companies to establish internal controls over financial reporting and have management assess their effectiveness?

Accepted Answer

Sarbanes-Oxley Act Section 404

Answer

SOX Section 404 mandates that management assess and report on the effectiveness of internal controls over financial reporting, with external auditor attestation.

Question 2

A compliance program gap analysis compares which two elements?

Accepted Answer

Actual compliance posture and required compliance standards

Answer

A gap analysis compares an organization's current compliance posture against the required standard or regulation to identify deficiencies that must be remediated.

Question 3

Which of the following best describes a 'compliance management system' (CMS)?

Accepted Answer

An integrated framework of policies, processes, and controls to meet compliance obligations

Answer

A CMS is an integrated framework encompassing policies, procedures, training, monitoring, and corrective action processes that together manage compliance obligations.

Question 4

Under which circumstance is attorney-client privilege most likely to protect a compliance investigation report?

Accepted Answer

When conducted at the direction of legal counsel for the purpose of providing legal advice

Answer

Attorney-client privilege protects investigation reports when they are conducted at the direction of counsel for the purpose of rendering legal advice to the organization.

Question 5

Which metric is MOST useful for measuring the effectiveness of a compliance training program?

Accepted Answer

Pre/post knowledge assessments and subsequent incident rates

Answer

Pre/post assessments measure knowledge change, and tracking incident rates after training provides evidence of behavioral impact, the true measure of effectiveness.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Compliance Programs 3