Practice Test Geeks(ACFE) Association of Certified Fraud Examiners Practice Test
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Corporate Governance and Ethics Flashcards

7 cards from real ACFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Corporate Governance and Ethics flashcards as text

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

    Answer: Both CEO and CFO

    SOX Section 302 requires both the CEO and CFO to personally certify the accuracy of financial reports filed with the SEC.

  2. What is the primary purpose of a board audit committee in the context of fraud prevention?

    Answer: Overseeing financial reporting and internal controls

    The audit committee oversees financial reporting integrity, internal controls, and the external audit process to detect and prevent fraud.

  3. Which governance concept refers to the separation of the roles of board chairman and chief executive officer?

    Answer: Board duality

    Board duality refers to having separate individuals serve as board chairman and CEO, which is considered a governance best practice to prevent power concentration.

  4. A company's code of ethics is MOST effective when it:

    Answer: Is supported by tone at the top and enforced consistently

    A code of ethics is most effective when leadership demonstrates commitment to it and violations are consistently addressed regardless of the offender's position.

  5. Which of the following best describes the concept of 'tone at the top' in corporate governance?

    Answer: The ethical environment established by senior leadership through their actions

    Tone at the top refers to the ethical culture and values that senior leadership models through their own conduct and decisions.

  6. An independent director on a corporate board is BEST defined as one who:

    Answer: Has no material relationship with the company beyond their directorship

    Independence requires that a director have no material financial or personal relationships with the company that could compromise their objectivity.

  7. Which ethical framework holds that the morality of an action is determined solely by its consequences?

    Answer: Consequentialism

    Consequentialism judges the rightness of actions based on their outcomes and effects, not on the nature of the actions themselves.