Practice Test GeeksAPP - Asset Protection Professional Certification Practice Test
← All APP Flashcard Decks

Regulatory Compliance & Standards Flashcards

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

Read the first 7 Regulatory Compliance & Standards flashcards as text

  1. Under the Federal Acquisition Regulation (FAR), which clause requires contractors to flow down certain requirements to their subcontractors?

    Answer: FAR 52.244-6 Subcontracts for Commercial Items

    FAR 52.244-6 mandates that prime contractors include specific clauses in subcontracts for commercial items, ensuring regulatory flow-down.

  2. Which U.S. regulation prohibits federal contractors from engaging in human trafficking activities in their supply chains?

    Answer: Executive Order 13627 and FAR 52.222-50

    Executive Order 13627, implemented through FAR 52.222-50, prohibits federal contractors and subcontractors from engaging in human trafficking.

  3. The Sarbanes-Oxley Act (SOX) Section 404 most directly impacts purchasing departments by requiring:

    Answer: Internal controls over financial reporting including procurement processes

    SOX Section 404 requires management to assess and attest to the effectiveness of internal controls over financial reporting, which includes procurement and purchasing controls.

  4. Which standard establishes a quality management system specifically for the aerospace industry that purchasing professionals must understand when sourcing aerospace components?

    Answer: AS9100

    AS9100 is the quality management system standard specifically developed for the aerospace industry, building upon ISO 9001 with additional aerospace-specific requirements.

  5. A purchasing professional discovers that a supplier's country of origin has been sanctioned by OFAC. The best immediate action is to:

    Answer: Halt purchasing and consult legal counsel immediately

    OFAC sanctions carry severe civil and criminal penalties, so halting transactions and consulting legal counsel immediately is the required response.

  6. The Robinson-Patman Act primarily protects against which purchasing practice?

    Answer: Price discrimination where a seller charges different buyers different prices for the same goods

    The Robinson-Patman Act prohibits price discrimination, preventing sellers from charging competing buyers different prices for the same goods when it lessens competition.

  7. Under GDPR, when a U.S. company's purchasing department collects personal data from EU-based suppliers, they must primarily ensure:

    Answer: A lawful basis for processing and appropriate safeguards for data transfer

    GDPR requires a lawful basis for processing personal data and appropriate safeguards (such as Standard Contractual Clauses) when transferring data outside the EU.