CFS Legal Aspects & Regulatory Compliance 2

Question 1

Under the Sarbanes-Oxley Act, what is the maximum criminal penalty for knowingly destroying documents to obstruct a federal investigation?

Accepted Answer

20 years imprisonment

Answer

SOX Section 1102 imposes up to 20 years imprisonment for knowingly destroying or falsifying records to obstruct a federal investigation.

Question 2

Which legal doctrine allows prosecutors to hold a corporation criminally liable for crimes committed by its employees acting within the scope of their employment?

Accepted Answer

Respondeat superior

Answer

Respondeat superior ('let the master answer') is the doctrine under which corporations face criminal liability for employees' acts within the scope of employment.

Question 3

Under the Federal Sentencing Guidelines, what term describes a formal program designed to prevent and detect criminal conduct within an organization?

Accepted Answer

Effective compliance and ethics program

Answer

The Federal Sentencing Guidelines use the term 'effective compliance and ethics program' to describe the formal structure organizations must have to earn culpability score reductions.

Question 4

Which FCPA provision prohibits U.S. companies from bribing foreign government officials to obtain or retain business?

Accepted Answer

Anti-bribery provisions

Answer

The FCPA's anti-bribery provisions explicitly prohibit offering, paying, or authorizing payments to foreign officials to obtain or retain business.

Question 5

A civil lawsuit filed under the False Claims Act that is initiated by a private citizen on behalf of the government is called a:

Accepted Answer

Qui tam action

Answer

Qui tam actions allow private citizens (relators) to sue on the government's behalf under the False Claims Act and share in any recovery.

(CFS) Certified Fraud Specialist Practice Test

(CFS) Certified Fraud Specialist Practice Test

CFS Legal Aspects & Regulatory Compliance 2