Reference no: EM133109074

Check Your Understanding

1. What was the primary purpose of the FCPA?

2. What was the maximum fine for a U.S. corporation under the FCPA?

3. Which two distinct areas did the FCPA focus on?

4. List four examples of routine governmental action

5. What are the three steps in calculating financial penalties under FSGO?

6. Explain the seven steps of an effective compliance program.

7. What were the three key components of the 2004 Revised FSGO?

8. Explain the role of the PCAOB.

9. What are the five key requirements for auditor independence?

10. What issues prompted the revision of the Federal Sentencing Guidelines for Organizations in 2004?

1. Which is the most effective piece of legislation for enforcing ethical business practices: FCPA, FSGO, SOX, or Dodd-Frank? Explain your answer.

Case Study

Review issue 6 below from Taking Sides. Which viewpoint do you side with? Why? Explain. Reference at least two outside resources that further support the viewpoint you side with.

Issue 6 - Was the Financial Industry Responsible for the Economic Meltdown of 2008?

YES: John C. Bogle, from "A Crisis of Ethic Proportions," Wall Street Journal (April 21, 2009)

NO: Lloyd C. Blankfein, from Permanent Senate Subcommittee on Investigation (June2010)

Issue Summary

YES: John Bogle laments the unchecked market forces, particularly in the fields of investment banking, banking, and finance that almost destroyed the global economy. He calls for the firms to make long-term investments, not short-term gains, and create an overall culture of ethics in all practices.

NO: Lloyd Blankfein, as the CEO of one of the largest global investment banks, does not believe that his financial firm was responsible for the market collapse of 2008. The blame could be placed on issues of risk management within the field instead.