The ANSWER is FALSE. A larger organization will need a more extensive and formal program,however, a smaller organization will also need a compliance program that will have to take into consideration its prior history, thecomplexities of it's business and the propensity for the industry towhich it longs to have been convicted of criminal offenses.
The ANSWER is TRUE. The term organization for the purpose of the Sentencing Guidelines means "a person other than an individual." Title 18 U.S.C. § 18. The term includes corporations, partnerships, associations, joint stock companies, unions, trusts, pension funds, unincorporated organizations, governments and political subdivisions thereof, and non-profit organizations.
The ANSWER is FALSE. The annual audit conducted by a CPA firm is designed to ensure that the books and records of the organization have been maintained in accordance with generally accepted accounting principles. The CPA firm will normally ensure that internal controls are in place to support their opinion on the firms financial condition. The audit that the CPA firm conducts does not address the issue of whether the firm has in place an effective compliance program that prevents and detects criminal activity.
The ANSWER is FALSE. The doctrine of respondeat superior refers to the situation whereby an organization is victimized by their employees. When this is the case, and the employee is acting within the scope of their employment, for the benefit of the organization, the criminal intent and knowledge of employees can be attributed to the organizations to which they work.
The ANSWER is FALSE. Companies as well as individuals can be placed on probation under the Guidelines. Part D of the Federal Sentencing Guidelines for Organizations, addresses the length of probation, conditions of probation, and violations of probation conditions for companies. In most cases some sort of intrusive oversight is imposed.
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