CFS CFS Corporate Governance & Whistleblower Programs

Question 1

Under the Sarbanes-Oxley Act (SOX), which section requires CEOs and CFOs to personally certify the accuracy of financial reports?

Accepted Answer

Section 302

Answer

Section 404

Answer

Section 806

Answer

Section 1107

Question 2

Which SOX provision requires management and auditors to assess and report on the effectiveness of internal controls over financial reporting?

Accepted Answer

Section 404

Answer

Section 302

Answer

Section 301

Answer

Section 806

Question 3

A company's audit committee is primarily responsible for:

Accepted Answer

Overseeing financial reporting and the external audit process

Answer

Setting executive compensation packages

Answer

Approving mergers and acquisitions

Answer

Managing day-to-day operational risk

Question 4

What is the primary purpose of a corporate code of conduct?

Accepted Answer

To set behavioral standards and ethical expectations for all employees

Answer

To satisfy IRS reporting requirements

Answer

To define the company's marketing strategy

Answer

To establish employee compensation scales

Question 5

Which governance concept describes the responsibility of a board of directors to act in shareholders' best interests?

Accepted Answer

Fiduciary duty

Answer

Segregation of duties

Answer

Due diligence

Answer

Tone at the top

Question 6

"Tone at the top" in fraud prevention refers to:

Accepted Answer

Senior leadership's demonstrated commitment to ethics and anti-fraud culture

Answer

The decibel level of alarms in the server room

Answer

The volume of audit reports issued annually

Answer

The number of fraud alerts generated by the IT department