Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
55. Under the Foreign Corrupt Practices Act, payments made with the knowledge that any
portion of the payment is to be passed along to a foreign official for a prohibited purpose under
the Foreign Corrupt Practices Act are known as _____.
56. Under the Foreign Corrupt Practices Act, payments to foreign officials in order to
expedite or secure the performance of a routine governmental action are known as _____.
6-22
57. Which of the following is a difference between grease payments and bribes under the
Foreign Corrupt Practices Act?
58. Which of the following statements is true of the Federal Sentencing Guidelines for
Organizations?
59. Which of the following is true of the penalties under the Federal Sentencing Guidelines
for Organizations (FSGO)?
60. Which of the following statements is true of the culpability score?
61. The formula used to calculate the total fine sentenced by the Federal Sentencing
Guidelines for Organizations (FSGO) is:
62. The maximum penalty that a judge can impose upon an organization for violating the
Federal Sentencing Guidelines for Organizations is a penalty worth:
63. The _____ is a fine that is set high enough by the Federal Sentencing Guidelines for
Organizations to match all the assets of an organization and effectively puts the organization out
of business.
64. Under the Federal Sentencing Guidelines for Organizations, the death penalty:
6-25
65. Which of the following requirements is included in the status of organizational probation
under the Federal Sentencing Guidelines for Organizations (FSGO)?
66. Which of the following is true of the effective compliance program prescribed by the
Federal Sentencing Guidelines for Organizations?
67. The _____ is a legislative response to the corporate accounting scandals of the early
2000s that cover the financial management of businesses.
68. The creation of the _____ was an attempt to reestablish the perceived independence of
auditing companies after the corporate accounting scandals of the early 2000s.
69. Which of the following statements is true of Title II of the Sarbanes-Oxley Act?
70. Which of the following is true of the Sarbanes-Oxley Act (SOX)?
71. Title VIII of the Sarbanes-Oxley Act addresses issues related to _____.
72. Title IX of the Sarbanes-Oxley Act focuses on:
73. In September and October 2008, financial markets around the world suffered a severe
crash as:
74. The _____ refers to the legislation that was promoted as the "fix" for the extreme
mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.
75. The _____ is a government agency within the Federal Reserve that oversees financial
products and services.
76. Which of the following responsibilities was granted to the Consumer Financial Protection
Bureau (CFPB)?
77. The _____ is a government agency established to prevent banks from failing and
otherwise threatening the stability of the U.S. economy.
6-31
78. The _____ states that there should be a key restriction in the legislation to limit the ability
of banks to trade on their own accounts (termed proprietary trading).
79. The illegal and unethical practice of providing old (or early) investors above-average
returns on their investment with funds raised from new (or late) investors in the absence of any
real business operation to generate profits is referred to as the _____.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Identify the five key pieces of U.S. legislation designed to discourage; if not prevent; illegal
conduct within organizations.
Fill in the Blank Questions
80. The introduction of the _____ placed more effective controls over bribing practices and
less obvious forms of payment to foreign officials and politicians by American publicly traded
companies pursuing international growth.
81. Prior to the passing of the Foreign Corrupt Practices Act, illegal corporate behavior was
punishable only through "secondary" sources of legislation like the _____, which required full
disclosure of funds that were taken out of or brought into the United States.
82. The Foreign Corrupt Practices Act was criticized because it formally recognized _____.
83. The Foreign Corrupt Practices Act finds facilitation payments acceptable provided they
expedite or secure the performance of a _____.
84. _____ are payments of money or anything else of value to influence or induce any foreign
official to act in a manner that would be in violation of his or her lawful duty.
85. _____ are facilitating payments to foreign officials in order to expedite or secure the
performance of a routine governmental action.
86. Under the Federal Sentencing Guidelines for Organizations, the _____ is calculated by
multiplying the base fine up to 4 times.
87. Under the Federal Sentencing Guidelines for Organizations, the base fine multiplied by the
_____ gives the total fine amount.
88. Under the Federal Sentencing Guidelines for Organizations, the _____ is a fine that is set
high enough to match all the assets of an organization and basically put the organization out of
business.
89. Under the Federal Sentencing Guidelines for Organizations, the _____ is warranted where
an organization was operating primarily for a criminal purpose.
90. The _____ was hailed as one of the most important pieces of legislation governing the
behavior of accounting firms and financial markets since the Securities and Exchange
Commission legislation in the 1930s.
91. The Public Company Accounting Oversight Board was established under the _____ Act.
92. Under the Sarbanes-Oxley Act, any public accounting firms that audited the records of
publicly traded companies were required to register with the _____.
93. _____ of the Sarbanes-Oxley Act focuses on issues related to auditor independence.
94. _____ of the Sarbanes-Oxley Act focuses on issues related to corporate tax returns.
95. The _____ is a legislation that was promoted as the "fix" for the extreme mismanagement
of risk in the financial sector that led to a global financial crisis in 2008-2010.
6-36
96. The _____ is a government agency within the Federal Reserve that oversees financial
products and services.
97. The _____ is a government agency established to prevent banks from failing and otherwise
threatening the stability of the U.S. economy.
98. The _____ states that there should be a key restriction in the legislation to limit propriety
trading—the ability of banks to trade on their own accounts.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Essay Questions
99. How did the Foreign Corrupt Practices Act (FCPA) encompass all the secondary
measures that were in use prior to the passing of the act?
100. Differentiate between bribes and grease payments.
Bribes are payments of money or anything else of value to influence or induce any foreign official
101. Discuss the Federal Sentencing Guidelines for Organizations.
102. Discuss the importance of the Sarbanes-Oxley Act.
103. Discuss the Dodd-Frank Wall Street Reform and Consumer Protection Act and the
agencies that were founded as a result of the passing of this act.
