Multiple Choice

Question 1
Which of the following is NOT a key attempt at behavior modification to discourage illegal conduct with organizations since the 1970s?
A. The U.S. Federal Sentencing Guidelines for Organizations   
B. The Ethics Resource Center   
C. The Sarbanes-Oxley Act   
D. The Foreign Corrupt Practices Act   

Question 2
Prior to the passing of the Foreign Corrupt Practices Act (FCPA), the illegality of this behavior was punishable only through the __________ sources of legislation.
A. primary   
B. international   
C. secondary   
D. domestic   

Question 3
By passing the Foreign Corrupt Practices Act (FCPA), Congress was sending a message that U.S. companies should compete solely on the basis on __________ in overseas markets.
A. price and product quality   
B. personnel and bribery   
C. payments and uniqueness   
D. uniqueness and government support   

Question 4
Which of the following is NOT considered a routine governmental action?
A. Providing permits to qualify a person to do business in a foreign country   
B. Processing governmental papers   
C. Providing police protection relate to the transit of goods across a country   
D. Influencing a government official to obtain a government or business contract   

Question 5
The SEC may bring civil fines of up to __________ per violation under the FCPA.
A. $100,000   
B. $50,000   
C. $25,000   
D. $10,000   

Question 6
The DII stands for the:
A. Declining Industry Initiatives.   
B. Defense Industry Initiatives on Business Ethics and Conduct.   
C. Domestic Industry Initiatives on Business Regulations.   
D. Defending International Initiatives on Procurement Irregularities.   

Question 7
All of the following are principles included in the DII EXCEPT for which one?
A. Each company will have and adhere to a written code of business ethics and conduct.   
B. Each company will create a free and open atmosphere that allows and encourages employees to report violations of its code to the company without fear of retribution for such reporting.   
C. Each company has the responsibility to live by the standards to increase investors’ confidence in the defense industry.   
D. Each company must have public accountability for its commitment to these principles.   

Question 8
The FSGO established a definition of an organization that was so __________ as to prompt the assessment that “no enterprise is exempt.”
A. narrow   
B. broad   
C. well-defined   
D. contracted   

Question 9
Which of the following is NOT a step in calculating a fine sentenced by the FSGO?
A. The culpability score   
B. The total fine amount   
C. The determination of the base fine   
D. The determination of the mitigating factors   

Question 10
The total fine sentenced by the FSGO is calculated by the base fine __________ the culpability score.
A. multiplied by   
B. plus   
C. minus   
D. divided by   

Question 11
The maximum penalty that a judge can administer for FSGO violations is a:
A. 2 million dollar penalty.   
B. penalty that is worth a quarter of the organization’s assets.   
C. penalty that is worth half of the organization’s assets.   
D. penalty that is worth the full amount of the organization’s assets.   

Question 12
An effective compliance program includes all of the following EXCEPT for which one?
A. Management oversight   
B. Consistent discipline   
C. Coercive action   
D. Compliance with standards and procedures   

Question 13
The creation of the __________ as independent oversight body was an attempt to reestablish the perceived independence of auditing companies.
B. AOB   
D. PCAB   

Question 14
Title __________ of the Sarbanes-Oxley Act addresses issues related to corporate responsibility.
A. III   
B. V   
C. VI   
D. VII   

Question 15
Title __________ of the Sarbanes-Oxley act addresses issues related to commission resources and authority.
A. III   
B. V   
C. VI   
D. VII   

Question 16
Title __________ of the Sarbanes-Oxley act addresses issues related to corporate fraud and accountability.
A. VIII   
B. IX   
C. X   
D. XI   

Question 17
Delegation of substantial discretionary authority is one step the __________ prescribes to organizations to create an effective compliance program to minimize the culpability score.
A. Defense Industry Initiatives (DII)   
B. Foreign Corrupt Practices Act (FCPA)   
C. Federal Sentencing Guidelines for Organizations (FSGO)   
D. Sarbanes-Oxley Act   

Question 18
Section 404 of the Sarbanes-Oxley act is estimated to have generated auditing fees in the:
A. hundreds of millions of dollars.   
B. hundreds of billions of dollars.    ??
C. few million dollar range.   
D. thousands of dollars.   

Question 19
The culpability score of an organization can be increased for all of the following reasons EXCEPT for which one?
A. The organization had a prior history of similar misconduct   
B. The organization willfully obstructed justice   
C. The organization self-reported the offense to appropriate governmental authorities   
D. High-level personnel were involved in or tolerated the criminal activity   

Question 20
The __________ was/were introduced to place more effective controls over the practice of paying bribes to foreign officials and politicians by American publicly traded companies as they pursued international growth.
A. Defense Industry Initiatives (DII)   
B. Foreign Corrupt Practices Act (FCPA)   
C. Federal Sentencing Guidelines for Organizations (FSGO)   
D. Sarbanes-Oxley Act