In: Accounting
QUESTION 5
The majority of conflicts of interest frauds are involved in purchasing or sales schemes.
True |
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False |
QUESTION 6
The Foreign Corrupt Practices Act is a state law in Massachusetts that prohibits conflicts of interest.
True |
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False |
QUESTION 7
The Foreign Corrupt Practices Act requires publicly traded corporations to keep accurate books and records and adopt a system of internal controls.
True |
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False |
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QUESTION 8
Under the Foreign Corrupt Practices Act, the Congress can seek civil penalties of up to $5,000,000 for corporate entities and up to $1,000,000 for individuals who violate the law.
True |
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False |
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QUESTION 9
Collusion is a secret agreement between two or more people for a fraudulent, illegal, or deceitful purpose such as subverting the internal controls of their employer.
True |
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False |
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QUESTION 10
A slush fund is a noncompany account into which company money is deposited and from which bribes (illegally) may be paid.
True |
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False |
5) True, the majority of conflict schemes fit into two categories purchases scheme and sales schemes. Most conflicts of interest arise when a victim company unwittingly buys something at a high price from a company in which one of its employees has a hidden interest, or unwittingly sells at a low price to a company in which one of its employees has a hidden interest.
6) False, The Foreign Corrupt Practices Act prohibits bribery is a U.S. federal law that addresses accounting transparency requirements and another concerning bribery of foreign officials. It does not prohibit conflicts of interest.
7) True, the accounting provisions of the Foreign Corrupt Practices Act requires publicly traded corporations to make and keep accurate books and records and to devise and maintain an adequate system of internal accounting controls.
8) False, the congress can seek civil panalties of upto $2 million (i.e. $2,000,000) for corporations or other business entities and upto $100,000 for individuals who violate the law.
9) True, Collusion is an improper secret agreement between two or more people, to defraud or deprive others of their property or rightful share, or for any other forbidden or illegal purpose.
10) True, slush fund is a non company account into which company money has been fraudalently diverted and from which bribes can be paid.