CFC CFC Corporate Governance & Ethics

Question 1

The Sarbanes-Oxley Act (SOX) Section 302 requires that the CEO and CFO of a public company do which of the following?

Accepted Answer

Personally certify the accuracy of financial reports filed with the SEC

Answer

File quarterly tax returns with the IRS

Answer

Disclose all insider trades within 10 business days

Answer

Maintain a minimum equity stake in the company

Question 2

Under the Sarbanes-Oxley Act, which section requires management to assess and report on the effectiveness of internal controls over financial reporting?

Accepted Answer

Section 404

Answer

Section 302

Answer

Section 802

Answer

Section 201

Question 3

Which of the following best describes the fiduciary duty of a corporate board of directors?

Accepted Answer

Acting in the best interests of shareholders with loyalty and care

Answer

Maximizing short-term quarterly earnings per share

Answer

Complying with all government regulations

Answer

Approving all management compensation packages

Question 4

What is the primary role of an audit committee within a corporate board?

Accepted Answer

Overseeing financial reporting, internal controls, and the external audit process

Answer

Setting executive compensation and bonus structures

Answer

Approving capital expenditure budgets

Answer

Managing investor relations and shareholder communications

Question 5

Under the Foreign Corrupt Practices Act (FCPA), US companies are prohibited from doing which of the following?

Accepted Answer

Bribing foreign government officials to obtain or retain business

Answer

Competing with foreign state-owned enterprises

Answer

Investing in countries with trade sanctions

Answer

Hiring foreign nationals as financial controllers

Question 6

Which governance framework provides principles for board accountability, transparency, and shareholder rights, most widely adopted by US public companies?

Accepted Answer

SEC disclosure requirements and NYSE/Nasdaq listing standards

Answer

International Financial Reporting Standards (IFRS)

Answer

ISO 31000 Risk Management Standard

Answer

Dodd-Frank Wall Street Reform Act