CSC Regulatory Compliance & Guidelines 2

Question 1

Under the Sarbanes-Oxley Act (SOX), which section requires management to assess the effectiveness of internal controls over financial reporting?

Accepted Answer

Section 404

Answer

SOX Section 404 mandates that management assess and report on the effectiveness of internal controls over financial reporting annually.

Question 2

A senior consultant discovers that a client's data retention policy keeps personal health information (PHI) for 10 years beyond the required HIPAA minimum. What is the most appropriate guidance?

Accepted Answer

Advise that longer retention increases breach risk and compliance burden without added benefit

Answer

While HIPAA sets minimum retention periods, retaining PHI beyond necessity increases risk and is inconsistent with the minimum necessary standard.

Question 3

Which regulatory framework governs anti-money laundering (AML) program requirements for U.S. financial institutions?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

The Bank Secrecy Act establishes AML program requirements, including customer due diligence and suspicious activity reporting.

Question 4

A company subject to CCPA (California Consumer Privacy Act) receives a consumer request to delete their personal data. Which scenario would allow the company to DENY the request?

Accepted Answer

The data is necessary to complete a transaction the consumer initiated

Answer

CCPA allows businesses to deny deletion requests when the data is necessary to complete an ongoing transaction or service.

Question 5

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is considered a permissible 'facilitating payment'?

Accepted Answer

A modest payment to a customs official to expedite routine customs clearance

Answer

The FCPA permits facilitating payments for routine governmental actions like customs clearance, though this exception is narrowly applied.

(CSC) Certified Senior Consultant Practice Test

(CSC) Certified Senior Consultant Practice Test

CSC Regulatory Compliance & Guidelines 2