Business Its Legal, Ethical, and Global Environment: Chapter 8. Answers

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1. Embezzlement is theft by an employee. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Theft and Embezzlement ... : Bloom's: Knowledge 2. Economic pressure is generally not a reason for corporate crime. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal What is Business Crime? The Crimes Within a Corporation : Bloom's: Comprehension 3. Intrabusiness crime is internal or employee crime. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal What is Business Crime? The Crimes Within a Corporation : Bloom's: Comprehension 4. Mens rea is the particular mental state required to establish a crime. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Knowledge 5. Directors are liable for a crime if the corporation is found guilty of the crime. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Who is Liable for Business Crime? : Bloom's: Application 6. Some crimes do not carry a mens rea requirement. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Comprehension 7. RICO is a federal criminal statute. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Knowledge 8. Criminal fraud is the same as contract fraud. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Criminal Fraud : Bloom's: Comprehension 9. RICO applies only to corporations. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Knowledge 10. Racketeering acts under RICO include theft, burglary, and arson. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Knowledge 11. The Fourth Amendment is the Miranda warning amendment. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Knowledge 12. The Sixth Amendment is the right-to-speedy trial amendment. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Knowledge 13. Probable cause is required only for warrantless searches. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 14. The exceptions for obtaining warrants include evidence in "plain view." a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 15. The Fourth Amendment privacy protections do not apply to business records. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 16. "Taking the Fifth" refers to the Fifth Amendment protection against self-incrimination. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 17. Corporate officers cannot invoke the Fifth Amendment for a corporation. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 18. The failure to give Miranda warnings is fatal to a case. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 19. A preliminary hearing is the same proceeding as an arraignment. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 20. The omnibus hearing is held before the preliminary hearing. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 21. The defendant enters his/her plea at the arraignment. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 22. Bond or bail is established at the initial appearance. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 23. A grand jury issues an information. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 24. Plea bargaining is done only before the arraignment. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 25. A preliminary hearing requires that the defendant take the stand. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 26. RICO applies only to repeat offenders. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Comprehension 27. Under RICO, business owners can be criminally liable for violations even though they were not directly running the business. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Comprehension 28. Corporate officers are not liable for acts delegated to subordinates. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Who is Liable for Business Crime? : Bloom's: Comprehension 29. The failure to follow crime prevention programs can result in harsher sentences under the U.S. corporate sentencing guidelines. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 30. Employee protection against retaliation for reporting activities is a critical part of crime prevention under U.S. guidelines. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 31. Bribery is an ethical violation, but is not a crime. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Commercial Bribery : Bloom's: Comprehension 32. An employee who is following orders cannot be held liable for any criminal charges that result from that conduct. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Who is Liable for Business Crime? : Bloom's: Comprehension 33. Voluntary reporting of criminal violations reduces a company's fines under the federal sentencing guidelines. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 34. In punishments for corporate criminal cases, shame punishment is increasing. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 35. The corporate sentencing guidelines provide a mathematical formula for determination of corporate sentences for crimes. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 36. Under the sentencing guidelines the Justice Department can agree to a non-prosecution agreement (NPA), but not to a deferred-prosecution agreement (DPA). a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Comprehension 37. Mens rea can be established without a confession. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Application 38. The USA Patriot Act requires those handling large sums of cash to verify the sources of those funds. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Business Crime and the USA Patriot Act : Bloom's: Knowledge 39. Commercial bribery is only criminal for the recipient. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Commercial Bribery : Bloom's: Comprehension 40. The “culpability multiplier” is part of the U.S. sentencing guidelines. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Application 41. Involvement of the top officers in corporate crimes increases the penalty under the U.S. sentencing guidelines. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Application 42. A willful violation of OSHA carries a possible one year prison sentence. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal The Penalties for Business Crime : Bloom's: Comprehension 43. The White-Collar Criminal Penalty Act of 2002 is known as the King Pin Act. a. b. : : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Federal Laws Targeting Officers and Directors for Criminal Accountability : Bloom's: Comprehension 44. SOX is the shorthand for the Sarbanes-Oxley business crime legislation. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Federal Laws Targeting Officers and Directors for Criminal Accountability : Bloom's: Knowledge 45. Monitors are often required by the Justice Department as part of a settlement of charges of corporate violations of criminal law. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 46. Monitors are not permitted to have daily access to a corporation. a. b. : : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Knowledge 47. Which of the following is not a requirement of mens rea? a. a specific act b. the state of mind required for the crime c. the intent to deprive d. All of the above are required for mens rea. : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Knowledge 48. In order to establish criminal liability of the directors of a corporation: a. a prosecutor need only establish that the corporation committed a crime. b. a prosecutor must establish that the directors had criminal intent. c. the corporation is liable for criminal acts but the directors are not liable. d. none of the above : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Application 49. Embezzlement is: a. theft by an employee. b. a crime that does not require proof of intent. c. a crime that can occur when property is borrowed. d. none of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Theft and Embezzlement : Bloom's: Knowledge 50. The mens rea required for theft is: a. intent to take the property permanently. b. intent to borrow the property. c. general intent to commit a crime. d. none - strict liability crime. e. none of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Theft and Embezzlement : Bloom's: Comprehension 51. What is the distinction between theft and embezzlement? a. the mens rea is different b. the amount taken c. the entrustment of the property d. They are the same crime. : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Theft and Embezzlement : Bloom's: Comprehension 52. RICO applies to: a. only organized crime. b. only physical force crimes. c. racketeering activity. d. only obstruction of justice. e. none of the above : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Application 53. Racketeering acts under RICO include: a. pension fund fraud. b. bribery. c. extortion. d. a and c only e. all of the above : e : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Comprehension 54. The Fourth Amendment: a. is the privacy protection amendment. b. provides the right for a jury trial. c. provides the protection against self-incrimination. d. none of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 55. Exceptions to the warrant requirement include: a. RICO violations. b. plain view doctrine. c. no available magistrate. d. records under the FCPA. : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 56. The Fifth Amendment: a. affords protection against self-incrimination. b. can be used by a corporation. c. can be used by officers to prevent disclosure of corporate records. d. none of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 57. The Miranda warnings: a. must be given or the case is dismissed. b. are based on Fifth Amendment rights. c. are based on Fourth Amendment rights. d. none of the above : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 58. In criminal procedure, the initial appearance: a. is the preliminary hearing. b. is where bail is set. c. follows the grand jury proceedings. d. is where a plea is entered. : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 59. An indictment is: a. a document issued by the grand jury. b. issued after a preliminary hearing. c. followed by an information. d. none of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 60. The omnibus hearing is: a. the same as the preliminary hearing. b. held before trial to determine evidentiary issues. c. held after trial. d. none of the above : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 61. The purpose of an omnibus hearing is to: a. issue an indictment. b. issue an information. c. hear evidentiary challenges. d. have the defendant enter a plea. : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 62. Most RICO charges involve: a. mail fraud, wire fraud or securities fraud. b. organized crime. c. wage tax violations. d. individuals and not companies. : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Application 63. Which of the following is not an element of the crime of embezzlement? a. intent to take property b. taking property permanently c. no authorization to take the property d. All of the above are elements of embezzlement. : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Theft and Embezzlement : Bloom's: Comprehension 64. Which of the following is not an element of criminal fraud? a. a material statement b. reliance by the buyer c. a mistake by the seller d. All of the above are elements. : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Criminal Fraud : Bloom's: Comprehension 65. The Fourth Amendment protections: a. apply to individuals. b. do not apply to corporations. c. do not apply to corporate officers. d. all of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 66. The Fifth Amendment protections: a. apply to corporations. b. can be used by officers of a corporation to prevent disclosure of corporate records. c. can be used by officers of a corporation to prevent disclosure of corporate records that incriminate them. d. none of the above : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 67. The failure to give the Miranda warnings: a. is a problem only if the defendant is in jail. b. will result in a dismissal of all charges. c. is a problem only if the defendant is in custody. d. none of the above : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 68. The purpose of the initial appearance is to: a. issue an indictment against the defendant. b. set the terms of release (if any). c. allow the judge to issue an information. d. provide the defendant with the opportunity to appear before the grand jury. : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 69. The purpose of an arraignment is to: a. issue an indictment against the defendant. b. set the trial date. c. provide the defendant with the opportunity to appear before the grand jury. d. ensure that the Miranda warnings are given. : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 70. Which of the following would mitigate an officer's or corporation's sentence under the corporate sentencing guidelines? a. officer had no direct knowledge; he/she was only the supervising manager b. the company had an ethics training program c. subordinates failed to follow orders d. subordinates were demoted for questioning decisions : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Application 71. Which of the following is not an exception to the Fourth Amendment search warrant requirement? a. a search of a burning building b. a search of an area in plain view c. an inspection of a factory for safety violations d. All of the above are exceptions to the warrant requirement. : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Application 72. "Taking the Fifth" means: a. refusing to allow a search of your office. b. refusing to turn over corporate documents. c. refusing to testify to prevent self-incrimination. d. demanding a search warrant. : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Application 73. At which of the following procedures may a defendant present evidence? a. initial appearance b. trial c. grand jury d. appeal : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 74. The FBI has developed new technology that enables it to listen to conversations in homes from vans parked in the street outside the homes. While listening to conversations in one neighborhood, the FBI uncovers a meth lab. Agents move in and arrest those in the home without a warrant. Under the Kyllo case: a. the FBI is not required to have a warrant because the information was uncovered without invading the house. b. the FBI is not required to have a warrant because the information was uncovered from outside the private property of the individuals involved. c. the FBI is required to have a warrant in order to listen to the conversations. d. the FBI needs a warrant to listen only if it is going to arrest someone. e. none of the above : c : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Analysis 75. The Money Laundering Control Act: a. applied only to financial institutions. b. prohibited concealing or disguising sources of funds. c. both a and b d. none of the above : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Business Crime and the USA Patriot Act : Bloom's: Comprehension 76. The USA Patriot Act: a. has been declared unconstitutional. b. expanded the Money Laundering Control Act. c. applies only to banks. d. none of the above : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Business Crime and the USA Patriot Act : Bloom's: Comprehension 77. Which of the following would be the crime of obstruction of justice? a. making a entry b. certification of financial statements c. destroying e-mails d. both a and c : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Obstruction of Justice : Bloom's: Application 78. Mens rea is: a. the actual criminal act. b. not required for proof of a crime. c. only required for common-law crimes. d. none of the above : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Comprehension 79. Joan owns a citrus tree farm near Mesa, Arizona. Joan and her family have fertilized the trees each spring for 52 years. The irrigation for the trees carries the fertilizer remnants into the Salt River. When EPA investigators discover the fertilizer in the Salt River and trace the unique brand to Joan, they indict her for violation of the Clean Water Act, for the discharge of a substance into a waterway. Joan responds, “I didn’t know there was fertilizer. I was just letting water flow.” a. Joan has sufficient mens rea for the crime. b. Joan can rely on the Ahmad case and escape criminal liability. c. Joan can be held criminally liable for negligence. d. none of the above : b : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Elements of Business Crime : Bloom's: Analysis 80. According to Arizona v. Gant, police officers: a. may not search a vehicle when the owner is present. b. may search a vehicle with the driver’s permission or with a warrant. c. may search a vehicle only with a warrant. d. may no longer search vehicles because it is an invasion of privacy. : b : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Analysis 81. Which of the following will reduce a corporation’s sentence under the U.S. Sentencing Guidelines? a. having a code of ethics b. having ethics training c. having ethics hotline d. All of these can reduce a corporation’s sentence. : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Reforming Criminal Penalties : Bloom's: Application 82. Which is the new crime created by Sarbanes-Oxley? a. mail fraud b. obstruction of justice c. certification of financial statements d. both a and b : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Federal Laws Targeting Officers and Directors for Criminal Accountability : Bloom's: Application 83. The penalty for document destruction under Sarbanes-Oxley is: a. five years. b. ten years. c. fifteen years. d. twenty years. : d : 1 : Easy : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal The Penalties for Business Crime : Bloom's: Knowledge 84. Bernie Ebbers, the former CEO of WorldCom, on trial for securities fraud and other crimes, offered as his defense that he did not know what his officers were doing. a. Ebbers’ defense is a valid one because there is no intent. b. Ebbers’ defense is a valid one because there is no actus reus. c. Ebbers can be held liable for the actions of employees. d. both a and b : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Who is Liable for Business Crime? : Bloom's: Comprehension 85. Penalties for corporate officers under Sarbanes-Oxley include: a. 20 years for mail and wire fraud. b. 10 years for violation of fiduciary duties. c. a maximum penalty of $5,000. d. both a and b : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Federal Laws Targeting Officers and Directors for Criminal Accountability : Bloom's: Knowledge 86. Dennis Kozlowski was the former CEO of Tyco who was charged with larceny, otherwise known as embezzlement. During his trial, Mr. Kozlowski offered testimony that all of his loans from the company that were not repaid were authorized loans that had been forgiven by the board of directors. The testimony about the board’s approval: a. shows a lack of mens rea on Kozlowski’s part. b. shows he did not have the actus reus of taking something that did not belong to him. c. is irrelevant because the money belonged to the corporation. d. both a and b : d : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Elements of Business Crime : Bloom's: Analysis 87. Under Sarbanes-Oxley, auditors must retain their work papers: a. for one year. b. for three years. c. for five years. d. until they no longer represent a client. : c : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Obstruction of Justice : Bloom's: Knowledge 88. Ann McMillan is a CPA with a public accounting firm. A client of Ann’s has called to tell her that the SEC is investigating the company for possible misrepresentations in the company’s financial reports. Ann is worried that she may have pushed the envelope in allowing some of the revenues of the client to be reported as they were. Ann shreds several sets of notes from her meetings with the client on revenue recognition. Ann a. is probably guilty of obstruction of justice. b. has done nothing wrong because the notes are privileged communication the SEC is not entitled to have. c. has not committed obstruction of justice because the SEC has not contacted her. d. none of the above : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Obstruction of Justice : Bloom's: Knowledge 89. What is usually the basis of RICO civil suits? a. criminal fraud or wire fraud b. prostitution c. gambling d. illegal drug sales or transportation : a : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Racketeer Influenced and Corrupt Organization Act (RICO) : Bloom's: Knowledge 90. Which of the following laws require businesses to report cash transactions involving $10,000 or more? a. Bank Secrecy Act b. USA Patriot Act c. Money Laundering Control Act d. all of the above : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Business Crime and the USA Patriot Act : Bloom's: Comprehension 91. The “Know They Customer” program: a. is a federal program directed at commercial bribery prevention. b. is a federal program related to detecting money laundering. c. is an unconstitutional federal program. d. both a and c : b : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Business Crime and the USA Patriot Act : Bloom's: Comprehension 92. Officer Muldoon is on foot patrol in Tempe, Arizona when he looks inside a garage (the garage door is open) and sees a statute that he knows is a rare art work that was stolen the night before from a building downtown. Officer Muldoon: a. cannot use the sighting as a basis for a warrant. b. cannot enter the premises to recover the statute. c. is not permitted to look inside the garage from the street even when the door is open. d. none of the above : d : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Analysis 93. Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that Jason was her attacker. a. Because of the violation of Jason’s rights in the officers’ failure to give the Miranda warnings, the case must be dismissed. b. The case can still proceed with the DNA evidence. c. The case can proceed but only with the victim’s testimony. d. none of the above : b : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Analysis 94. Schmuck was involved in the sale of used automobiles. He engaged in the practice of rolling back odometers and then selling the vehicles. What crime(s) has been committed? : U.S. v. Schmuck, 776 F.2d 1368 (7th Cir.1985). Fraud. : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Criminal Fraud : Bloom's: Analysis 95. Pedro Moreno and Rolando Cue-Baiza brought their boat from Nassau to Miami. They re-entered the Miami port without going through customs. They docked the boat and began unloading it. Miami customs officials had observed the boat re-enter (by helicopter). When Moreno and Cue-Baiza began unloading the boat, customs officials sent in a team of officers to search the boat (no warrant). The officers discovered numerous bales of marijuana during the search and Moreno and Cue-Baiza were charged with drug possession and trafficking. They are now challenging the validity of the warrantless search. Discuss its validity. : The search met the emergency exception. Failing to go through customs was already a crime. Agents saw unloading and acted because "fruits of the crime" were being eliminated. U.S. v. Moreno, 778 F.2d 719 (11th Cir.1985). : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Analysis 96. McGuire was an employee of First National Bank of Grayson (FNBG). FNBG participated in a Kentucky Housing Corporation (KHC) program in which KHC loaned money to financial institutions. The institutions would then make low-interest loans to low-income individuals who qualified for purchase of a home. FNBG received the funds and produced bogus paperwork for 80 loans but never loaned the money. Instead, they invested the money at a high rate of interest. Eventually the money was returned to KHC, but McGuire was charged with making records and fraud. Can McGuire, as an employee, be held liable? : The court held yes because he did all the work and knew the purposes of the paperwork and the investment. The scheme defrauded the government agency of funds that could have been used for low-income housing. U.S. v. McGuire, 744 F.2d 1197 (11th Cir. 1984). : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Who is Liable for Business Crime? : Bloom's: Analysis 97. Ann McEachron is an administrative assistant at a large international accounting firm. Her supervisor has asked her to destroy boxes of documents from an audit the firm conducted 2 years ago. The firm generally keeps records for 7 years, because of potential tax liability and issues, but it has destroyed documents earlier in cases in which the amount of paperwork becomes overwhelming. Ann wonders about the request, but complies with her supervisor's order. The company that was the subject of the audit is currently under criminal investigation and the partner in the accounting firm who conducted the audit is aware of that investigation. It is a federal crime to destroy documents that are involved in or could potentially be involved in either a civil or criminal investigation. Evaluate the criminal liability of Ann, her supervisor and the partner for the destruction of the documents. Would your be different if Ann had read in the newspaper about the criminal investigation of the company? : The issue is whether Ann and her supervisor had intent. It is clear that the audit partner had intent, however. The fact that he did not perform the physical act of destruction does not shield him from liability under the criminal statute. Supervisors, officers and directors can be held criminally liable for the conduct of those who report to them. If it can be shown that Ann was aware of the investigation of the company, then she develops the requisite intent. Her lack of knowledge of the law is not a defense to the destruction. : 1 : Challenging : United States - BUSPROG: Analytic United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Elements of Business Crime : Bloom's: Analysis 98. Discuss the procedural changes made as a result of Arizona v. Gant. : The Supreme Court held that when the police searched Gant’s (the driver’s) car when he was handcuffed in a police car, that violated his rights. The police may only search a vehicle with the driver’s consent or with a warrant. The procedural changes because of this is police officers may not detain the driver while searching the driver’s vehicle; this may allow the driver to flee, try to hide the evidence, or attack an officer. : 1 : Challenging : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Procedural Rights for Business Criminals : Bloom's: Comprehension 99. Explain the changes Sarbanes-Oxley made to criminal laws. : Additional penalties for white collar crimes. New crimes, including financial certification fraud. New sentencing guidelines and new requirements for programs and carrots-and-sticks. New records retention requirements. More expansive standards for obstruction of justice conduct and greater penalties. : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Federal Laws Targeting Officers and Directors for Criminal Accountability Reforming Criminal Penalties : Bloom's: Knowledge 100. Glen Albanese was arrested after federal authorities conducted an investigation that indicated the funds that he had raised for relief efforts for Hurricane Katrina victims had been used to purchase landscaping for his home, acquire a Labradoodle pedigree dog, and buy tickets to DisneyWorld and Six Flags. Mr. Albanese had raised funds for his charity by advertising that the funds raised would be used to rebuild homes and provide scholarships for the children of victims. Instead, he met individuals who sold him the dog and furnished the landscaping in odd locations and paid them in cash in envelopes. Which of the following crimes would be applicable for the federal authorities to charge? a. Criminal fraud b. Embezzlement c. A violation of SOX d. a and b only e. all of the above : d : 1 : Moderate : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Legal Theft and Embezzlement Criminal Fraud : Bloom's: Application Stewart Parnell, the former CEO of the now-bankrupt Peanut Corporation of America, was charged with falsifying food safety reports required by the FDA. The reports certified that his peanut base product was salmonella free. In some cases, the tests were not yet complete when the certification was done and in other cases the tests indicated the presence of salmonella. 101. Mr. Parnell and others formerly with the company had their charges issued through a grand jury. Which of the following would have been issued? a. indictment b. information c. subpoena d. warrant : a : 1 : Moderate : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Analysis 102. Part of the case came from federal agents’ examination of e-mails Mr. Parnell sent to his managers and employees. Which of the following is correct about the agents’ access to those e-mails? a. Because employees e-mails are not private, the agents did not need a warrant. b. The agents would have been required to obtain a warrant. c. Mr. Parnell could successfully object to the use of the e-mails because of his Fifth Amendment rights. d. both b and c : b : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Synthesis 103. Mr. Parnell entered a not guilty plea to the charges. Which of the following would have been the forum for entering that plea? a. grand jury b. preliminary hearing c. arraignment d. initial appearance : c : 1 : Challenging : United States - BUSPROG: Reflective Thinking : United States - OH - AICPA: BB-Critical Thinking Procedural Rights for Business Criminals : Bloom's: Comprehension 104. The crime Mr. Parnell is charged with is shipping contaminated food. What would the federal government have to show in its case to establish the crime? a. That Mr. Parnell did the actual shipping of the product. b. That Mr. Parnell saw the actual product before it was shipped. c. That Mr. Parnell knew that the product was contaminated before shipment occurred. d. all of the above : c : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Elements of Business Crime : Bloom's: Synthesis 105. Who else would be criminally responsible for the shipment of contaminated product? a. board members b. managers who shipped the product knowing it was contaminated c. clerks who paid the shipping expenses d. shippers who handled the goods : b : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Who is Liable for Business Crime? : Bloom's: Synthesis 106. The U.S. Justice Department has entered into a deferred prosecution agreement with several U.S. banks on charges of mortgage fraud. The agreements provide that if the banks stay out of legal difficulties for five years then the charges will be dropped. The banks agreed to have monitors in place during the five years and pay a fine. Which of the following best describes what has been done by these arrangements with the banks? a. A guilty plea has been entered. b. A nolo contendere plea has been entered. c. There has been a finding of innocence. d. The parties have a corporate integrity agreement. : d : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Reforming Criminal Penalties : Bloom's: Synthesis 107. Which of the following crimes has been curbed back by appellate court decisions on corporate financial misstatements and officer liability? a. honest services fraud b. SOX financial certification provisions c. obstruction of justice d. criminal fraud : a : 1 : Challenging : United States - BUSPROG: Analytic : United States - OH - AICPA: BB-Critical Thinking Federal Laws Targeting Officers and Directors for Criminal Accountability : Bloom's: Synthesis [Show More]

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