FREE CRCT Financial Controls & Compliance Questions and Answers

Question 1

What is the purpose of financial compliance?

Accepted Answer

To ensure legal and ethical conduct

Answer

To avoid paying taxes

Answer

To monitor employee attendance

Answer

To increase sales

Question 2

Which regulation sets the standard for financial transparency in the U.S.?

Accepted Answer

SOX

Answer

GDPR

Answer

HIPAA

Answer

FERPA

Question 3

What is the role of an external audit in compliance?

Accepted Answer

To ensure independent financial review

Answer

To market new products

Answer

To monitor employee productivity

Answer

To improve customer experience

Question 4

What document outlines internal financial procedures?

Accepted Answer

Financial procedures manual

Answer

Company brochure

Answer

Internal memo

Answer

Press release

Question 5

What is one consequence of non-compliance?

Accepted Answer

Legal penalties

Answer

Increased productivity

Answer

Government incentives

Answer

Improved cash flow

Question 6

Which of the following is a key component of a financial control system?

Accepted Answer

Segregation of duties

Answer

One-person control

Answer

Verbal reporting only

Answer

Manual accounting only

Question 7

What role does documentation play in financial compliance?

Accepted Answer

It provides audit trails

Answer

It's optional

Answer

It's only for HR

Answer

It complicates financial systems

Question 8

Why is it important to conduct periodic reviews of compliance controls?

Accepted Answer

To maintain system accuracy

Answer

To impress stakeholders

Answer

To delay audit procedures

Answer

To reduce staffing

Question 9

Which financial record is essential for verifying transactions?

Accepted Answer

General ledger

Answer

Organizational chart

Answer

Sales brochures

Answer

Job descriptions