Practice Test Geeks(RCMS) Registered Compliance Management Specialist Certification Practice Test
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Ethics & Corporate Governance Flashcards

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

Read the first 7 Ethics & Corporate Governance flashcards as text

  1. A compliance officer discovers that a senior executive is steering contracts to a vendor owned by a family member without disclosure. Which governance principle is most directly violated?

    Answer: Conflict of interest policy

    Undisclosed related-party transactions violate conflict of interest policies, which require disclosure and recusal.

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

    Answer: Chief Executive Officer and Chief Financial Officer

    SOX Section 302 requires the CEO and CFO to personally certify the accuracy and completeness of periodic financial reports.

  3. What is the primary purpose of a board-level audit committee in a publicly traded US company?

    Answer: Overseeing financial reporting and internal controls

    The audit committee oversees the integrity of financial reporting, internal audit function, and relationship with external auditors.

  4. An employee reports suspected fraud through a hotline. Under the Dodd-Frank Act, which federal agency can the employee also report to for potential whistleblower protections and awards?

    Answer: Securities and Exchange Commission

    Dodd-Frank established the SEC Whistleblower Program, which offers financial awards and anti-retaliation protections for qualifying tips.

  5. Which of the following best describes 'tone at the top' in a corporate ethics context?

    Answer: Leadership's visible commitment to ethical behavior that sets organizational culture

    Tone at the top refers to the ethical climate and culture modeled by senior leadership through their actions and stated values.

  6. A company's code of ethics prohibits gifts over $50 from vendors. A salesperson accepts a $200 gift certificate and does not report it. What type of control failure does this represent?

    Answer: Detective control failure

    A detective control failure occurs when a monitoring or detection mechanism fails to identify a policy violation that has already occurred.

  7. The Foreign Corrupt Practices Act (FCPA) prohibits US companies from paying bribes to which category of recipients?

    Answer: Foreign government officials

    The FCPA specifically prohibits corrupt payments to foreign government officials to obtain or retain business.