14. Under the U.S. Sentencing Guidelines, the culpability score of an organizati
ID: 381940 • Letter: 1
Question
14. Under the U.S. Sentencing Guidelines, the culpability score of an organization convicted of an a. High-level personnel were involved in or tolerated the organization's criminal activity b. The organization had a prior history of similar misconduct c. The organization wilfully obstructed justice d. The organization self-reported the offense to appropriate authorities offense might be mitigated if: 15. Which of the following statements regarding the Sarbanes-Oxley Act (SOX) is true? The provisions of SOX were repealed by the passing of the Foreign Corrupt Practices Act sox was a legislative response to a series of corporate accounting scandals that began to dominate the financial markets and mass media in 2001 SOX permitted public accounting firms to provide audit services to any company whose CEO was employed by that accounting firm within the previous 12 months The SOX prohibit public accounting firms that audit the financial statements of publicly traded companies from registering with the Public Company Accounting Oversight Board a. b. c d. 16. Which of the following is not a requirement of the Bank Secrecy Act? a. Report suspicious activity that may evidence money laundering, tax evasion, or other criminal activities b. Implement a written, board-approved compliance monitoring program c Keep records of all cash transactions d. None of the above 17. Which of the following statements about SARs is incorrest? An SAR must be filed when there is an identifiable suspect and the transaction involves $5,000 or more a. b. The filing of an SAR must be disclosed to any person identified as a suspect therein c. Copies of SARs and supporting documentation must be retained for five years from the date of filing the SAR None of the above d. 18. Unlawful "Insider Trading" includes- a. Stock trading between directors, officers, or employees of an issuer b. Trading on the basis of false or misleading information c. Trading by a corporate executive using material, nonpublic information obtained through his or her corporate position Techniques utilized by most successful investors to make money in the stock market d.Explanation / Answer
14 d
The four factors that increase the ultimate punishment of an organization are: (i) the involvement in or tolerance of criminal activity; (ii) the prior history of the organization; (iii) the violation of an order; and (iv) the obstruction of justice.
The two factors that mitigate the ultimate punishment of an organization are: (i) the existence of an effective compliance and ethics program; and (ii) self-reporting, cooperation, or acceptance of responsibility.
15 d
SOX created a new auditor watchdog, the Public Company Accounting Oversight Board. It set standards for audit reports. It requires all auditors of public companies to register with them. The PCAOB inspects, investigates and enforces compliance from these firms. It prohibits accounting firms from doing business consulting with the companies they are auditing.
16 b
17 b
Federal law requires that a financial institution and its directors, officers, employees and agents who report suspected or known criminal violations or suspicious activity may not notify any person involved in the transaction that the transaction has been reported.
18 d
Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.
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