RCMS Ethics & Corporate Governance 2

Question 1

A compliance officer discovers that a senior executive is steering contracts to a vendor owned by a family member without disclosure. Which governance principle is most directly violated?

Accepted Answer

Conflict of interest policy

Answer

Undisclosed related-party transactions violate conflict of interest policies, which require disclosure and recusal.

Question 2

Under the Sarbanes-Oxley Act, which officer must personally certify the accuracy of financial statements filed with the SEC?

Accepted Answer

Chief Executive Officer and Chief Financial Officer

Answer

SOX Section 302 requires the CEO and CFO to personally certify the accuracy and completeness of periodic financial reports.

Question 3

What is the primary purpose of a board-level audit committee in a publicly traded US company?

Accepted Answer

Overseeing financial reporting and internal controls

Answer

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

Question 4

An employee reports suspected fraud through a hotline. Under the Dodd-Frank Act, which federal agency can the employee also report to for potential whistleblower protections and awards?

Accepted Answer

Securities and Exchange Commission

Answer

Dodd-Frank established the SEC Whistleblower Program, which offers financial awards and anti-retaliation protections for qualifying tips.

Question 5

Which of the following best describes 'tone at the top' in a corporate ethics context?

Accepted Answer

Leadership's visible commitment to ethical behavior that sets organizational culture

Answer

Tone at the top refers to the ethical climate and culture modeled by senior leadership through their actions and stated values.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS Ethics & Corporate Governance 2