CIRO Regulatory Compliance & Governance 2

Question 1

Under SEC Regulation FD, what must a company do if it unintentionally discloses material nonpublic information to a select group of investors?

Accepted Answer

File an 8-K or issue a press release promptly to disclose the information publicly

Answer

Reg FD requires the company to make prompt public disclosure — via a Form 8-K or press release — when material nonpublic information is unintentionally disclosed.

Question 2

Which SEC form must a public company file within four business days of a material triggering event such as a change in auditors or a departure of a principal officer?

Accepted Answer

Form 8-K

Answer

Form 8-K is the current report used to disclose material corporate events to the public within four business days.

Question 3

A company's board audit committee is best described under corporate governance standards as responsible for:

Accepted Answer

Overseeing the company's financial reporting process and external auditor relationship

Answer

The audit committee oversees financial reporting integrity, internal controls, and the relationship with external auditors.

Question 4

NYSE and Nasdaq listing standards generally require that the majority of a listed company's board of directors be:

Accepted Answer

Independent directors

Answer

Both NYSE and Nasdaq require that a majority of the board consist of independent directors to protect shareholder interests.

Question 5

Under Sarbanes-Oxley Section 302, corporate officers who certify financial reports and later discover a material misstatement are required to:

Accepted Answer

Disclose the error and cooperate in a restatement

Answer

SOX 302 certifications create personal accountability, and officers must support accurate disclosure including correcting any known misstatements.

(CIRO) Certified Investor Relations Officer Practice Test

(CIRO) Certified Investor Relations Officer Practice Test

CIRO Regulatory Compliance & Governance 2