Board Reporting & Governance Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Board Reporting & Governance flashcards as text
When reporting a significant compliance breach to the board, which element is LEAST appropriate to include in the initial report?
Answer: Names of all employees investigated
Individual employee names should be omitted from initial board reports to protect privacy and preserve investigation integrity.
A company's board is reviewing the compliance program effectiveness. Which indicator best demonstrates a 'strong compliance culture'?
Answer: High rate of voluntary self-reporting through the ethics hotline
High voluntary self-reporting rates indicate employees trust the system and feel safe reporting concerns, reflecting genuine cultural commitment to compliance.
Which board committee typically has primary oversight responsibility for the compliance function?
Answer: Audit committee
The audit committee typically oversees compliance, internal controls, and risk management as part of its governance mandate.
A CCB professional is asked to design a board dashboard. Which frequency is most appropriate for a compliance KPI dashboard?
Answer: Quarterly
Quarterly dashboards align with board meeting cycles and provide sufficient time for trends to emerge while keeping oversight current.
Under the Sarbanes-Oxley Act, what must the CEO and CFO certify regarding internal controls in reports to the board and SEC?
Answer: That they have evaluated and reported on the effectiveness of internal controls over financial reporting
SOX Section 302 requires CEO and CFO certification that they have assessed and disclosed the effectiveness of disclosure controls and internal controls.
A board member asks why the compliance report shows 'open findings' from last quarter. What governance principle does this monitoring reflect?
Answer: Issue tracking and remediation accountability
Tracking open findings ensures accountability for remediation and demonstrates the board's ongoing oversight of control deficiencies.
What is the significance of an 'executive session' in board governance?
Answer: A meeting of independent directors without management present
Executive sessions allow independent directors to discuss concerns about management candidly without executives present, supporting objective oversight.