criminology questions

8/11/2019 Criminology Questions

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Sec. 1 CriminologyPages # Quest.

I. Understanding Human Behavior . 2II. !heories o" Crime Causation... .... 1$III. %hite collar Crime ..... ... 1$

I&. 'rgani(ational Crime ...... 1 2&. 'ccu)ational Crime ............ .21 2*&I. +es)onsi,ility "or -raud Prevention....... 2&II. Cor)orate Sentencing /uidelines ........... 0* 2*&III. -raud Prevention Policy .. ...... .0 1I3. Punishment ........... * 103. Criminal 4ustice System ........... 223I. 5thics "or -raud 56aminers ............ 1 23II. 7C-5 Code o" 5thics ....... 2

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I. Understanding Human Behavior8888888888888888888888888888888888888

1. Incentives programs and task-related bonuses are reinforcement strategies t at can be successfully util i!ed in t e"orkplace.

7. !rue

#. $alse

% en managers are faced "it disgruntled employees& t ey can modify t ese emotional circumstances& not 'ust "it(image( "ork& but "it ade)uate compensation and by recogni!ing "orkers* accomplis ments. Incentives programsand task-related bonuses follo" t is principle& assuming t at employees " o feel c allenged and re"arded by t eir

'obs "ill produce more "ork at a ig er )uality& and are less likely to violate t e la".

+. Criminological researc as generally concluded t at punis ing a person for a crime elps deter t at person fromcommitting ot er crimes in t e future.

,. rue

B. -alse

#e avioral studies& suc as t ose conducted by Skinner& s o" t at punis ment is t e least effective met od ofc anging be avior. unis ing brings (a temporary suppression of t e be avior&( but only "it constant supervisionand application. In repeated e periments& Skinner found t at punis ment-eit er applying a negative stimulus& ortaking a"ay a positive one-effectively e tinguis ed a sub'ect*s be avior& but t at t e be avior returned (" en t e

punis ment "as discontinued and eventually all responses came out( again.

. ,ccording to t is t eory& people obey t e la" because t ey fear punis ment

,. 2ormative erspective

B. Instrumental Pers)ective

C. 3oluntary Compliance

4. 5egitimacy

,ccording to t e t eory of Instrumental erspective& people obey t e la" because t ey fear punis ment.

. ,ccording to Skinner& t e most effective "ay to modify a persons be avior is t roug

7. Positive rein"orcement

#. 2egative reinforcement

C. unis ment

4. 2one of t e above

Skinner concludes t at be avior is most effectively modified by managing and modifying desires t rougreinforcement7 e "ants to replace destructive be aviors "it productive ones& instead of trying to punis an alreadye isting impulse.

8. % en a detective searc es for a suspect*s motive& t e detective is using be aviorist met ods of analysis.

7. !rue

#. $alse

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% en a detective searc es for a suspect*s motive& t e detective is using be aviorist met ods of analysis. e suspect&it is assumed& "as stimulated by some arrangement of factors. 9any courses in criminology are built around t efundamental premise t at crimes are particular sorts of be avior and best understood as t e product of operantconditioning.

6. #e avioral studies s o" t at punis ment is t e least effective met od of c anging be avior.

7. !rue

#. $alse

#e avioral studies& suc as t ose conducted by Skinner& s o" t at punis ment is t e least effective met od ofc anging be avior. unis ing brings (a temporary suppression of t e be avior&( but only "it constant supervisionand application. In repeated e periments& Skinner found t at punis ment-eit er applying a negative stimulus& ortaking a"ay a positive one-effectively e tinguis ed a sub'ect*s be avior& but t at t e be avior returned (" en t e


:. unis ment is t e most effective met od for c anging criminal be avior.

,. rue

B. -alse

#e avioral studies& suc as t ose conducted by Skinner& s o" t at punis ment is t e least effective met od ofc anging be avior. unis ing brings (a temporary suppression of t e be avior&( but only "it constant supervisionand application. In repeated e periments& Skinner found t at punis ment--eit er applying a negative stimulus& ortaking a"ay a positive one--effectively e tinguis ed a sub'ect*s be avior& but t at t e be avior returned (" en t e


;. #e avioral studies s o" t at ___________ is t e least effective met od of c anging be avior.

7. Punishment

#. Conditioning

C.


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II. !heories o" Crime Causation88888888888888888888888888888888888888888888888888

10. $reud defines biological urges and "ants as

7. Id

#. ?go

C. Superego


$reud identified a t ree-part structure to uman personality t e id @t e drive for food& se & and ot er life-sustainingt ingsA& t e superego @t e conscience " ic develops " en learned values become incorporated into a person*s

be aviorA& and t e ego @t e (I( or t e product of t e interaction bet"een " at a person "ants and " at isconscience "ill allo" im to do to ac ieve " at e "antsA.

11. In t e Bnited States& t e best-kno"n e planation regarding crime causation is

7. !he theory o" di""erential association

#. e t eory of operant-utilitarianism

C. e t eory of differential reinforcement


e t eory of differential association is undoubtedly t e best-kno"n among all e planations offered in t e BnitedStates to account for crime& t oug it too as been "idely critici!ed on t e grounds t at it is 'ust about impossible totest. e t eory first appeared as a systematic formulation in 1= = in t e t ird edition of ?d"in . Sut erland*s

rinciples of Criminology. 5ater& Sut erland "ould make is best-kno"n contribution to criminology by coining t e p rase " ite-collar crime and "riting a monograp on t e sub'ect.

1+. % ic early pioneer in criminology developed t e t eory of t e (criminal man(D

,. 5ogoni

#. #eccaria

C. #ent am

9. :om,roso

e foundations of biological t eory "ere laid by Cesare 5ombroso& an Italian doctor& " o insisted t at t ere "ere(born( criminals& people " o "ere atavistic& t at is t ro"backs to more primitive uman types. 5ombroso spent iscareer measuring t e bodies of offenders and concluded t at t ey "ere marked by a ig degree of asymmetry& "itsuc t ings as sloping fore eads and ot er (anomalies.( 5ater critics "ould point out t at 5ombroso used no controlgroup-t at is e did not measure people " o "ere not criminals& and if e ad done so e "ould ave found t att ey s ared e)ually in t ose kinds of traits t at 5ombroso presumed "ere indicative of criminal propensities.

1 . e differential reinforcement t eory is a combination of t e "ork of sociologists ?d"in Sut erland and #. $.Skinner.

7. !rue

#. $alse

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4ifferential reinforcement t eory is anot er attempt to e plain crime as a type of learned be avior. It is a revision ofSut erland*s "ork t at incorporates elements of psyc ological learning t eory populari!ed by #. $. Skinner andsocial learning t eory. e t eory "as summari!ed by


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7. !rue

#. $alse

?ssentially& control t eory argues t at t e institutions of t e social system train and press t ose "it " om t ey arein contact into patterns of conformity. Sc ools train for ad'ustment in society& peers press t e et os of success andconventional be avior& and parents strive to inculcate la"-abiding abits in t eir youngsters even& irsc i stresses&

parents " o t emselves play fast and loose "it t e rules. e t eory rests on t e t esis t at to t e e tent a personfails to become attac ed to t e variety of control agencies of t e society& is or er c ances of violating t e la" areincreased. is doctrine edges very close to being self-evident in its insistence t at close affiliation "it la"-abiding

people& groups& and organi!ations is predictive of la"-abiding be avior& but it is notably ric "it subordinatestatements& some of t em far from obvious.

1=. e t eory of differential association is used fre)uently to e plain " ite-collar criminality. % ic of t efollo"ing is 2> one of t e assertions or principles of differential associationD

,. Criminal be avior is learned

B. Criminal ,ehavior is learned ,y a )rocess o" a,sor)tion

C. 4ifferential association may vary in fre)uency

4. ,ll of t e above are principles of differential association

e t eory of differential association "as developed by criminologist ?d"in Sut erland. It states t at @1A criminal be avior is learned7 @+A it is learned from ot er people in a process of communication7 @ A criminal be avior isac)uired t roug participation "it intimate personal groups7 @ A t e learning process includes t e s aping ofmotives& drives& rationali!ations and atti tudes7 @8A motives are learned from definitions of legal codes as beingfavorable or unfavorable7 @6A a person becomes criminal because of an e cess of definitions favorable to violation of t e la" over definitions unfavorable to violation of t e la"7 @:Adifferential association may vary in fre)uency&duration& priority& and intensity7 @;A learning criminal be avior involves all t e mec anisms of ot er learning7 @=Alearning differs from pure imitation7 and @10A " ile criminal be avior is an e pression of general needs and values&it is not e plained by t ese needs and values.

+0. e aspects of affiliation addressed by t e social control t eory include

,. Involvement

#. ,ttac ment

C. #elief

9. 7ll o" the a,ove

$our aspects of affiliation are addressed by t e social control t eoryE ,ttac mentE CommitmentE InvolvementE #elief

+1. ________ t eories old t at criminality is a function of individual sociali!ation and t e social-psyc ologicalinteractions people ave "it t e various organi!ations& institutions& and processes of society.

7. Social Process

#.


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C. Social Structure

4. #iological

Social process t eories old t at criminality is a function of individual sociali!ation and t e social-psyc ologicalinteractions people ave "it t e various organi!ations& institutions& and processes of society.

++. ?ssentially& control t eory argues t at t e institutions of t e social system train and press t ose "it " om t eyare in contact into patterns of __________.

,. Criminality

#. 9indlessness

C. Con"ormity

4. syc opat y

?ssentially& control t eory argues t at t e institutions of t e social system train and press t ose "it " om t ey arein contact into patterns of conformity. Sc ools train for ad'ustment in society& peers press t e et os of success andconventional be avior& and parents strive to inculcate la"-abiding abits in t eir youngsters. e t eory rests on t e

t esis t at to t e e tent a person fails to become attac ed to t e variety of control agencies of t e society& is or erc ances of violating t e la" are increased. is doctrine edges very close to being self-evident in its insistence t atclose affiliation "it la"-abiding people& groups& and organi!ations is predictive of la"-abiding be avior& but it isnotably ric "it subordinate statements& some of t em far from obvious.

+ . ,ccording to $reud& t e learned dictates of t e social system are called

,. Id

B. Su)erego

C. ?go


$reud identified a t ree-part structure to uman personality t e id @t e drive for food& se & and ot er life-sustainingt ingsA& t e superego @t e conscience " ic develops " en learned values become incorporated into a person*s

be aviorA& and t e ego @t e (I( or t e product of t e interaction bet"een " at a person "ants and " at isconscience "ill allo" im to do to ac ieve " at e "antsA.

+ . Some criminologists t ink t at crime rates are relatively stable7 t at is& t e motivation to commit crime and t esupply of "illing offenders is fairly constant. is t eory of crime is called t e

,. Stable crime t eory

#. Constant supply t eory

C. 4eterrence t eory

9. +outine activities theory

, variation of t e classical t eory& routine activities t eory olds t at bot t e motivation to commit crime and t esupply of "illing offenders is constant7 t ere al"ays "ill be a certain number of people motivated by greed& lust& andot er pro-crime forces. e determining factor in predatory crimes @violent and t eft-related crimesA is t e activitiesof t e potential victims. ere are purportedly t ree variablesE ,vailability of suitable targetsE ,bsence of capable guardians @suc as omeo"nersA

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E resence of motivated offenders @suc as unemployed teenagersA

+8. Some criminologists old t at fraud offenders ave certain psyc ological c aracteristics suc as psyc opat y.% o is responsible for t e early development of psyc oanalytical t eoriesD

,. 4ollard

B. -reud

C. ?ysenck

4. Fuay

eories rooted in psyc ology are based on t e vie" t at criminal be avior is t e product of mental processes. e psyc oanalytical ideas of Sigmund $reud focus on early c ild ood development and on unconscious motivations&t at is& motivations of " ic t e offender imself is not a"are.

+6. 9any critics today claim t at one reason for significant " ite-collar crime is its (mild( punis ment. % ic p ilosop y claims t at offenders "ill calculate potential gains and losses before t ey decide to disobey t e la"D

,.


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E ,buses of trust committed by people in organi!ations against organi!ations& for e ample& embe!!lement& bribery&and kickbacksE Collateral business crime committed by organi!ations in furt erance of t eir business interests& for e ample& false"eig ts and measures& antitrust violations& and environmental crimesE Confidence games offenses committed to c eat clients& for e ample& fraudulent land and bogus securities sales

+. Studies indicate t at " ite-collar offenses are seen by t e public to be as serious if not more serious t antraditional kinds of crime.

7. !rue

#. $alse

Studies indicate t at& at least in t e abstract& " ite-collar offenses& particularly t ose t at inflict p ysical arm& areseen by t e public to be as serious if not more serious t an more traditional kinds of crime& t ose offenses t at& asone early criminologist noted& carry a (brimstone smell.(

. ,ccording to t e aut ors of (Crimes of t e 9iddle Classes&( all of t e follo"ing factors ave contributed to t erising problem of economic crime ?HC?

,. e ,merican economy*s increased reliance on credit

#. e continued pressures of an economic system t at re"ards affluence and success

C. !he over;helming de)endence on "oreign trade

4. e increased opportunity for "rongdoing as a result of advancing information tec nologies

e aut ors of (Crimes of t e 9iddle Classes( posit several factors " ic ave contributed to t e rising problem ofeconomic crimeE ,merica*s economy increasingly runs on credit& " ic often means rising personal debt. e offenders in t esample often s o"ed serious discrepancies (bet"een t eir resources and t eir commitments.(E 2e" information tec nologies mean t at t e opportunity for "rongdoing is gro"ing& and many of t e tec ni)uesare not "idely compre ended by businesses or individuals.

E overnment programs distributing large amounts of money make an enticing target for defalcations.E e importance of credentials in a professionali!ed society may influence individuals (to inflate t e credentials& or to make t em up " en t ey do not e ist.( is tendency involves everyt ing from c eating on sc ool entrancee ams to falsifying credit applications.E 9ost broadly& t e aut ors observe an ,merican culture based on affluence and ever- ig er levels of success. ( econtinued pressure of a value system t at re"ards economic affluence or its visible by-products as its effects on t e

broad middle of ,merican society.( elevision& and advertising in general& promise t at no one as to settle forsecond best& prompting t ose " o find t emselves running be ind to fudge t e difference& crossing et ical andsometimes legal lines.

. ,ccording to modern criminological studies& ________________ is/are t e determinant aspect@sA of " ite-collarcrime.

,. Social status

#. $inancial constraints

C. 'rgani(ational o))ortunity


>f all factors& organi!ational opportunity remains t e determinant aspect of " ite-collar crime. ,gainst Sut erland*semp asis on an elite group running ig -class sting operations& later studies s o" t at organi!ation and comple itymake a larger difference t an t e offender*s social status.

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8. 4onald ne criminologist studied embe!!lers and found t at many ad been living beyond t eir means for some time before t ey started embe!!ling. is criminologist is

7. Cressey

#. #rait "aite

C. eis


4onald


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" ite-collar crime t an truck drivers and almost a 1 percent greater likeli ood t an managers. Gudges seem to find persons of ig er prestige more at fault& or in ot er "ords& more blame"ort y& in t e commission of t eir crimes.

=. ,ccording to t e aut ors of (Crimes of t e 9iddle Classes&( tig tening restrictions on credit cards and loans "illave little effect on economic crimes.

,. rue

B. -alse

$urt ermore& like many analysts t ese days& t e (Crimes...( team believes it is far too easy to ac)uire money andgoods on credit. ig tening t e restrictions on credit cards and loans "ould directly address t e role t at debt playsin many sc emes.

0. % ic of t e follo"ing is considered one of t e broad categories of " ite-collar crimeD

,. ,buses of trust

#. ,d oc violations

C. Collateral business crimes

9. 7ll o" the a,ove are ,road categories

Criminologists offer an array of breakdo"ns of " ite-collar offenses& eac one providing some analyticaladvantages& and eac failing to meet t e more rigorous scientific standards of precise categori!ation. >ne of t e

better kno"n models "as prepared by erbert ?del ert!& a onetime federal prosecutor. ?del ert! divides t eoffenses into four ma'or typesE ,d oc violations committed for personal profit on an episodic basis& for e ample ta c eatingE ,buses of trust committed by people in organi!ations against organi!ations& for e ample& embe!!lement& bribery&and kickbacksE Collateral business crime committed by organi!ations in furt erance of t eir business interests& for e ample& false"eig ts and measures& antitrust violations& and environmental crimesE Confidence games offenses committed to c eat clients& for e ample& fraudulent land and bogus securities sales

1. % ite-collar criminals are more likely to be fined t an to face prison terms as punis ment.

7. !rue

#. $alse

9ore often t an prison& t e punis ment of c oice for " ite-collar criminals is t e imposition of fines. % ereas si percent of t e (common criminals( in one notable survey received fines& all of t e antitrust violators did.

0. (Social status( or (class( plays no role in t e commission of " ite-collar crime.

,. rue

B. -alse

% at is loosely called (class( or (social status( does ave an effect on crimes. $or e ample& one defendant used is position as c airman of a local bank board to set up loans for is ailing "ood c ip company. e loans "ould never

ave been approved "it out t e c airman*s influence& and e never reported t em in is pro y statement to t e bank*s s are olders.

+. % ite-collar defendants are less likely to insist on a trial t an ot er offenders.

,. rue

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B. -alse

% ite-collar defendants are more likely to insist on a trial t an ot er offenders. In at least =0 percent of federalcases& defendants "ill plead guilty& avoiding t e e pense and effort of a trial. #ut& over 1; percent of defendants inone notable study @as opposed to t e usual 10 percentA pled (2ot uilty.( In cases like bank embe!!lement& usually(simple cases "it clear evidence&( plea bargains are easily negotiated and (prosecutors may actively seek guilty

pleas.(

. ,ccording to t e aut ors of (Crimes of t e 9iddle Classes&( television and advertising influence economiccrimes by promising t at no one as to settle for second best.

7. !rue

#. $alse

e aut ors of (Crimes of t e 9iddles Classes( observe an ,merican culture based on affluence and ever- ig erlevels of success. ( e continued pressure of a value system t at re"ards economic affluence or its visible by-

products as its effects on t e broad middle of ,merican society.( elevision& and advertising in general& promiset at no one as to settle for second best& prompting t ose " o find t emselves running be ind to fudge t edifference& crossing et ical and sometimes legal lines.

.1. e term (" ite-collar crime( "as first coined by _________________ in 4ecember 1= = during an addressto t e ,merican Sociological Society.

7. 5d;in H. Sutherland

#. Immanuel Jant

C. 4onald


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I&. 'rgani(ational Crime88888888888888888888888888888888888888888888

. % ite-collar offenses are usually punis ed by

7. 7dministrative and=or civil )enalties

#. Civil penalties

C. Criminal penalties

4. ,dministrative penalties

>rgani!ational crime occurs in t e conte t of comple relations ips. % ite-collar crime is distinguis ed from lo"ersocio-economic crimes in terms of t e structure of t e violation and t e fact t at administrative and civil penaltiesare more likely to be used as punis ment t an are criminal penalties.

8. e e istence of many speciali!ed departments "it in a company generally decreases t e overall risk of fraud by t e organi!ation

,. rue

B. -alse

Speciali!ation tends to ide illegal activities& especially " ere a firm*s tasks are kept separate and unrelated.?mployees cannot garner kno"ledge about all t e particulars of o" a firm "orks. is protects a company fromt e effects of personnel turnover and leaks of information& because no one can offer muc more t an a piece of t e

'igsa" pu!!le t at paints t e overall company picture. e same secrecy& o"ever& raises t e c ances formisconduct.

6. ,ccording to a study by Clinard and Keager& about " at percentage of $ortune 800 companies ave at least one" ite-collar violationD

,. 0L

B. *>

C. 10L


In a compre ensive study of corporate la"-breaking& 9ars all Clinard @a recipient of t e ,ssociation*s 4onaldCressey ,"ardA and eter Keager found t at l&88 " ite-collar crime cases ad been filed against t e 86+ $ortune800 businesses " ose records t ey scrutini!ed for a t"o-year period. Some 60 percent of t e firms ad at least onecase against t em7 for t ose companies t e average number of violations "as . . e oil& p armaceutical& andmotor ve icle industries "ere t e most likely to be c arged for "rongdoing& a matter t at may be a function ofenforcement priorities or a true reflection of t eir activities.

:. Clinard and Keager believe corporate crimes are increasingly difficult to detect because

7. &iolations are more com)le6

#. ,ccounting tec ni)ues are more sop isticated

C. Criminals are smarter


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Clinard and Keager believe t at corporate violations are increasingly difficult to discover& investigate& or prosecutesuccessfully because of t eir gro"ing comple ity and intricacy. is is particularly true& t ey believe& of antitrustcases& foreign payoffs& computer fraud& and illegal political contributions.

;. ,ccording to


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,. ne of t e reasons is t at t elarge company becomes too un"ieldy for e ecutives to manage. is concept is called

,. >rgani!ational distancing

B. 7uthority lea@age

C. 4epartmental distancing

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4. Communication degeneration

3aug an "rites t at organi!ational gro"t naturally leads to a progressive loss of control over departments.? ecutives cannot ope to keep track of all t e units of a large company& and must rely on subordinates to carry out

policy. 3aug n states t at " en t e distance bet"een top e ecutives and subordinate units gro"s to a sufficientlevel& (aut ority leakage( results. Suc leakage allo"s subsidiaries& company researc ers& accountants or ot erdepartments to engage in misconduct since t ere are inade)uate internal controls to c eck t e be avior.

88. In a study of corporate crime& Clinard and Keager found small companies are more prone to commit financialviolations t an large ones.

,. rue

B. -alse

In t eir study of corporate criminality& Clinard and Keager found t at large corporations "ere far more likely tocommit violations t an small corporations. 5arge corporations also bear a disproportionate s are of sanctions forserious or moderate violations.

86. Comple organi!ational structures can lead to fraud. , ___________ problem can occur " en t e language&

rules& procedures& and recording systems of t"o organi!ations diverge to t e point " ere t e differences in ibit&rat er t an promote& a transaction.

,. Signal inde

B. System inter"ace

C. ransactional interpretation


, (system interface problem( occurs " en t e language& rules& procedures& and recording systems of t"oorgani!ations diverge to t e point " ere t e differences in ibit& rat er t an promote& a transaction. If one or bot

organi!ations is un"illing or unable to resolve t e problem t roug legitimate means& t e transaction system itselfmay become t e avenue for illegal activity. In t at case& t e complicated nature of t e transaction encouragesla"lessness& "it perpetrators figuring t e c ances of detection are small.

8:. ransactions bet"een comple organi!ations sometimes can be an avenue for corporate misconduct ororgani!ational crimes. 3aug n identified four distinguis ing c aracteristics of transactions. % ic of t e follo"ingis 2> one of t emD

7. S)eci"ic monitoring )rocedures

#.


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6+. ?d"ard ross and ot er criminologists ave asserted t at organi!ations are in erently

7. Criminogenic

#. ? ploitative

C. Criminal


?d"ard ross as asserted t at all organi!ations are in erently (criminogenic( @prone to committing crimeA& but notnecessarily criminal. %it out necessarily meaning to& organi!ations can invite fraud as a means of obtaining goals.

ross makes t is assertion because of t e reliance on t e (bottom line.(

6 . ,s a strategy to control crime& _________ is designed to detect la" violations& determine " o is responsible& and penali!e t e offender to deter future violations.

,. revention

B. 9eterrence

C. Compliance


,s a strategy to control crime& deterrence is designed to detect la" violations& determine " o is responsible& and penali!e offenders in order to deter future violations. 4eterrence t eory assumes t at people are rational in t eir be avior patterns. eople seek profit and pleasure " ile t ey try to avoid pain. 4eterrence assumes t at anindividual*s propensity to"ard la"breaking is in inverse proportion to t e perceived probability of negativeconse)uences.

6 . Clinard and Keager& in t eir studies& found t at mass media publicity "as t e most feared conse)uence ofsanctions imposed on a corporation.

7. !rue

#. $alse

Clinard and Keager found t at mass media publicity about la" violations probably represents t e most fearedconse)uence of sanctions imposed on a corporation.

68. Sociologists maintain t at comple organi!ational transactions can lead to unla"ful corporate conduct. ,sorgani!ations increase in comple ity& t e likeli ood t at t ey "ill engage in informal transactions generallyincreases.

,. rue

B. -alse

ransactions bet"een comple organi!ations can add to t e potential for misconduct by offering legitimate means of unla"fully pursuing scarce resources. ,s organi!ations become more comple & t e likeli ood t at t ey "ill engagein informal transactions diminis es. ? c anges bet"een companies " ic are formal& comple and impersonal arelikely t emselves to be formal& comple and impersonal. is can lead to conditions ripe for misconduct.

66. ?fforts to control corporate crime follo" t ree approac es. % ic of t e follo"ing is/are includedD

,. 3oluntary c anges in corporate attitudes

______________________________________________________________________________ Sec. 1 - Criminology 1; / 66


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#. Consumer action

C. State intervention

9. 7ll o" the a,ove are a))roaches

?fforts to control corporate crime follo" t ree approac es voluntary c ange in corporate attitudes and structure7strong intervention by t e state to force c anges in corporate structure& accompanied by legal measures to deter or

punis 7 or consumer action. 3oluntary c anges "ould involve t e development of stronger business et ics andorgani!ational reforms. overnment controls may involve federal corporate c artering& deconcentration anddivestiture& larger and more effective enforcement staffs& stiffer penalties& "ider use of publicity as a sanction& and

possibly t e nationali!ation of corporations. Consumer group pressures may be e erted t roug lobbying& selective buying& boycotts& and t e establis ment of large consumer cooperatives.

6:. Clinard and Keager found si main types of i llegal corporate be avior. % ic of t e follo"ing is 2> one of t eclassifications t ey listedD

7. Com)liance violations

#. $inancial violations

C. ,dministrative violations

4. ,ll of t e above are listed

Clinard and Keager found si types of violations common to corporations administrative& environmental& financial&labor& manufacturing& and unfair trade practices. Certified $raud ? aminers are most familiar "it financialviolations.

______________________________________________________________________________ Sec. 1 - Criminology 1= / 66


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#. 5abor

C. ?nvironmental

4. ,dministrative

$inancial violations& according to Clinard and Keager& involve illegal payments or failure to disclose suc violations.? amples include commercial domestic bribery& illegal domestic political contributions& payments to foreignofficials& t e conferring of illegal gratuities& and benefits and violations of foreign currency la"s. ? amples ofsecurities-related violations are false and misleading pro y materials& misuse of nonpublic material information& andt e issuance of false data.

:+. 2o model--not even Cressey*s (fraud triangle(--"ill fit every fraudulent situation.

7. !rue

#. $alse

Cressey*s classic fraud triangle elps e plain t e nature of many-but not all-occupational offenders. $or e ample&alt oug academicians ave tested is model& it as still not fully found its "ay into practice in terms of developingfraud prevention programs. Common sense dictates t at no one model--not even Cressey*s--fits every situation.

: . e term (occupational crime( covers at least four types of " ite-collar offenses. % ic of t e follo"ing is oneof t ose typesD

,. Crimes by professionals

#. Crimes by individuals

C. Crimes by organi!ations

9. 7ll o" the a,ove are ty)es

ary reen& in oning t e " ite-collar crime concept& uses t e term (occupational crime&( " ic e defines as (any

act punis able by la" " ic is committed t roug opportunity created in t e course of an occupation " ic islegal.( reen furt er delineates occupational crime into four categoriesE Crimes for t e benefit of an employing organi!ation @organi!ational occupational crimeAE Crimes by officials t roug e ercise of t eir state-based aut ority @state aut ority occupational crimeAE Crimes by professionals in t eir capacity as professionals @professional occupational crimeAE Crimes by individuals as individuals

: . ,ccording to a study conducted by 4r. Steve ,lbrec t& college graduates are more likely t an non-collegegraduates to spend t e proceeds of an occupational crime on lu uries& suc as e travagant vacations or e pensiveautomobiles.

,. rue

B. -alse

,ccording to 4r. Steve ,lbrec t& perpetrators " o "ere interested primarily in (beating t e system( committedlarger frauds. o"ever& perpetrators " o believed t eir pay "as not ade)uate committed primarily small frauds.5ack of segregation of responsibilities& placing undeserved trust in key employees& imposing unrealistic goals& andoperating on a crisis basis "ere all pressures or "eaknesses associated "it large frauds. College graduates "ere lesslikely to spend t e proceeds of t eir loot to take e travagant vacations& purc ase recreational property& supporte tramarital relations ips& and buy e pensive automobiles. $inally& t ose "it lo"er salaries "ere more likely to

ave a prior criminal record.

______________________________________________________________________________ Sec. 1 - Criminology +1 / 66


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:8. Criminologist 4onald Cressey divided occupational crime offenders into t ree categories. % ic of t efollo"ing is one of t ose categoriesD

,. Independent businessmen

#. 5ong-term violators

C. ,bsconders

9. 7ll o" the a,ove are categories

$or furt er analysis& Cressey divided t e sub'ects into t ree groups independent businessmen& long-term violators&and absconders. e discovered t at eac group ad its o"n types of rationali!ations.

:6. ,ccording to t e +006 ccupational $raud and ,buse& frauds committed by o"ners ande ecutives ad a lo"er median loss t an t ose committed by rank-and-file employees.

,. rue

B. -alse

enerally speaking& t e level of aut ority a person olds "it in an organi!ation "ill tend to ave t e mostsignificant impact on t e si!e of t e loss in a fraud sc eme. e more aut ority an individual as& t e greater t atindividual*s access to organi!ational resources& and t e more ability t at person as to override controls in order toconceal t e fraud.

essential to t e commission offraudD

,. ec nical skill

#. Information about company funds

C. 7,sence o" controls

4. ,ll of t e above are essential

______________________________________________________________________________ Sec. 1 - Criminology ++ / 66


24/66

In Cressey*s vie"& t ere "ere t"o components of t e perceived opportunity to commit a trust violation generalinformation and tec nical skill. eneral information is simply t e kno"ledge of o" t e employee*s position of trustcould be violated. ec nical skill refers to t e ability to commit t e violation.

:=. ,ccording to a study conducted by 4r. Steve ,lbrec t& occupational crime perpetrators " o "ere interested primarily in (beating t e system( committed larger frauds.

7. !rue

#. $alse



;0. ,ccording to criminologist 4onald Cressey& one nons arable problem " ic may lead to occupational crime is

poor employer-employee relations ips.

7. !rue

#. $alse

$inally& Cressey described problems resulting from employer-employee relations ips. e most common& e stated&"as an employed person " o resents is status "it in t e organi!ation in " ic e is trusted. e resentment cancome from perceived economic ine)uities& suc as pay& or from t e feeling of being over"orked orunderappreciated. Cressey said t is problem becomes nons arable " en t e individual believes t at makingsuggestions to alleviate is perceived maltreatment "ill possibly t reaten is status in t e organi!ation. ere is alsoa strong motivator for t e perceived employee to "ant to (get even( " en e feels ill treated.

;1. ,ccording to a study conducted by 4r. Steve ,lbrec t& occupational crime perpetrators " o believed t eir pay"as not ade)uate committed primarily large frauds.

,. rue

B. -alse



;+. In t e area of sanctions& criminologists ave found t at condemnation of family and friends is actually more of adeterrent to crime t an going to prison for most people.

7. !rue

#. $alse

Social control in t e "orkplace& according to ollinger and Clark& consists of bot formal and informal socialcontrols. e former control can be described as e ternal pressures t roug bot positive and negative sanctions7 t e

______________________________________________________________________________ Sec. 1 - Criminology + / 66


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latter& t e internali!ation by t e employee of t e group norms of t e organi!ation. ese researc ers& along "it aost of ot ers& ave concluded t at-as a general proposition-informal social controls provide t e best deterrent.

( ese data clearly indicate t at t e loss of respect among one*s ac)uaintances "as t e single most effective variablein predicting future deviant involvement.( $urt ermore& (in general& t e probability of suffering informal sanctionis far more important t an fear of formal sanctions in deterring deviant activity.(

; . ,ccording to


26/66


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&I. +es)onsi,ility "or -raud Prevention88888888888888888888888888888888

;=. e read"ay Commission& formed in 1=;: "it t e purpose of defining t e responsibility of t e auditor in preventing and detecting fraud& made " ic of t e follo"ing recommendationsD

,. , %ritten Company C arter

#. ,de)uate ,udit


28/66

C>S> identified five interrelated components of internal control. e effectiveness of internal controls can bedetermined from an assessment of " et er t ese five components are in place and functioning effectively. e fivecomponents are control environment& risk assessment& control activities& information and communication& andmonitoring.

= . Corporations and ot er organi!ations cannot be eld liable for t e criminal acts of t eir employees.

,. rue

B. -alse

Corporations and ot er organi!ations can be eld liable for criminal acts committed as a matter of organi!ational policy. $ortunately& most organi!ations do not e pressly set out to break t e la". o"ever& corporations and ot erorgani!ations may also be eld liable for t e criminal acts of t eir employees if t ose acts are done in t e course andscope of t eir employment and for t e ostensible purpose of benefiting t e corporation. = . , corporation cannot be eld criminally liable for t e actions of i ts employees if management ad no kno"ledgeor participation in t e criminal events.

,. rue

B. -alse

e corporation can be eld criminally responsible even if t ose in management ad no kno"ledge or participationin t e underlying criminal events and even if t ere "ere specific policies or instructions pro ibiting t e activityundertaken by t e employees. e acts of any employee& from t e lo"est clerk on up to t e C?>& can imputeliability upon a corporation.

=8. , company can avoid liability for t e acts of its employees by claiming t at i t did not kno" " at its employee"as engaged in.

,. rue

B. -alse

, company cannot seek to avoid vicarious liability for t e acts of its employees by simply claiming t at it did notkno" " at "as going on. 5egally speaking& an organi!ation is deemed to ave kno"ledge of all facts kno"n by itsofficers and employees. at is& if t e government can prove t at an officer or employee kne" of conduct t at raiseda )uestion as to t e company*s liability& and t e government can s o" t at t e company "illfully failed to act tocorrect t e situation& t en t e company may be eld liable& even if senior management ad no kno"ledge orsuspicion of t e "rongdoing.

=6. C>S> recommends t at corporations engage in background c ecks of managerial employees in particular.

7. !rue

#. $alse

>ne of t e easiest "ays to establis a strong moral tone for an organi!ation is to ire morally sound employees. oooften& t e iring process is conducted in a slips od manner. >rgani!ations s ould conduct t oroug backgroundc ecks on all ne" employees& especially managers. In addition& it is important to conduct t oroug intervie"s "itapplicants to ensure t at t ey ave ade)uate skills to perform t e duties t at "ill be re)uired of t em.

=:. e commission formed in 1=;: "it t e purpose of defining t e responsibility of t e auditor in preventing anddetecting fraud is kno"n as t e

,. ep art Commission

______________________________________________________________________________ Sec. 1 - Criminology +: / 66


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B. !read;ay Commission

C. Jlaas Commission


e 2ational Commission on $raudulent $inancial


30/66

&II. Cor)orate Sentencing /uidelines8888888888888888888888888888888888

=;. , fraud prevention program "ill generally not be effective if a company does not punis employees " o violatet e program.

7. !rue

#. $alse

?nforcing a compliance program means ad ering to a system of disciplinary actions for rulebreakers. ?mployeesmust kno" t at if t ey violate t e company*s compliance policy& t ey "ill be punis ed. e opportunity to commitfraud is psyc ologically more acceptable " en employees believe fraud normally goes undetected andunprosecuted. 2e" employees s ould be advised of t e compliance program at t e time of ire& and s ould sign anannual statement ackno"ledging t eir understanding of it. e range of possible punis ments for violations of t e

policy s ould be spelled out.

==. % ic of t e follo"ing is a good met od of discovering internal fraudD

,. Surprise audits

#.


31/66

7. !rue

#. $alse

$raud ,ssessment Fuestioning is a nonaccusatory intervie" tec ni)ue used as a part of a normal audit. It operateson t e t eory t at employees* attitudes are a good indicator of potential problems& and t at one of t e most effective"ays to deal "it fraud is to ask about it.

10 . % ic of t e follo"ing types of personnel can potentially bind a corporation t roug t eir o"n misconductD

,. 5o"-level employees

#. Independent contractors

C. ? ecutive officers and directors

9. 7ll o" the a,ove

e corporate compliance policy s ould be communicated to everyone " o can potentially bind a corporationt roug t eir o"n misconduct. is includes t e follo"ingE ? ecutive officers and directors

E 9anagers and supervisorsE 5o"-level employeesE Independent contractors

10 . It is generally not a good idea to ask employees in your organi!ation " et er or not t ey believe fraud isoccurring because it gives t e impression t at management is una"are of t e fraud risks of t e organi!ation.

,. rue

B. -alse

$raud ,ssessment Fuestioning is a nonaccusatory intervie" tec ni)ue used as a part of a normal audit. It operateson t e t eory t at employees* attitudes are a good indicator of potential problems& and t at one of t e most effective

"ays to deal "it fraud is to ask about it.

108. ,ccording to t e Corporate Sentencing uidelines& a corporate policy t at mitigates t e effect of an occurrenceof fraud can reduce an organi!ation*s fine by as muc as =8L.

7. !rue

#. $alse

$ines are based on t"o factors t e seriousness of t e offense and t e level of culpability by t e organi!ation. eseriousness of t e offense determines t e base fine to be imposed. is figure can be )uite ig . e organi!ation*sculpability is a measure of t e actions taken by t e organi!ation " ic eit er mitigated or aggravated t e situation.4epending on t e culpability of t e organi!ation& t e base fine can be increased by as muc as 00L or reduced byas muc as =8L.

106. e Corporate Sentencing uidelines provide several possible punis ments for an organi!ation t at is foundliable for an offense. % ic of t e follo"ing is 2> an optionD

,.


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C. e 4epartment of Gustice "as soft on crime

4. $raud "as rampant in ,merican business

Congress& in t e Compre ensive Crime Control ,ct of 1=; & mandated t e uniform sentencing guidelines. e actalso establis ed t e Bnited States Sentencing Commission @BSSCA " ic began studying sentences for individualssoon after t e passage of t e act. It "as "idely eld in Congress t at t ere "as a great disparity of penalties forsimilar crimes committed by individuals. ,fter t ree years of study& t e BSSC announced Sentencing uidelines forIndividuals. In 2ovember of 1=;:& t ese guidelines "ere applied in t e = $ederal Courts of t e Bnited States.

111. In order for its compliance program to be considered effective under t e $ederal Sentencing uidelines& t eorgani!ation must communicate its program to all its employees. ,lt oug training regarding t e program isencouraged& it is not re)uired by t e uidelines.

,. rue

B. -alse

Bnder t e Sentencing uidelines& organi!ations 9BS conduct (effective training programs.( >rgani!ations arealso re)uired to periodically and appropriately communicate t e program*s compliance re)uirements and procedures

to all employees affected by t e program& including upper-level personnel. ese programs s ould be designed toinform employees about t e company*s stance on corporate compliance. ey s ould also inform employees about" at kinds of acts and omissions are pro ibited by t e la" and by t e organi!ation.

11+. Bnder t e Corporate Sentencing uidelines& if an offending organi!ation violates its probation& t e penaltiescan include any of t e follo"ing options ?HC?

,.


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C. o secure payment of restitution

4. ,ll of t e above are mandatory probation situations

Courts are re)uired to impose probation on offending organi!ations under t e follo"ing circumstancesE o secure payment of restitution& enforcement of a remedial order& or to ensure completion of community serviceE o safeguard t e organi!ation*s ability to pay a monetary penalty t at "as not fully paid at t e time of sentencingE % en an organi!ation "it at least 80 employees did not ave an effective program to detect and preventviolations of la"E % en t e organi!ation "as ad'udicated "it in t e past five years to ave committed misconduct similar to any

part of t e misconduct of t e instant offenseE % en suc an order is necessary to ensure c anges are made to reduce t e likeli ood of future criminal conductE % en t e sentence does not include a fineE % en suc an order is necessary in order to accomplis one or more purposes of sentencing set fort in 1; B.S.C.&Section 88 @aA@+A

118. Bnder t e Corporate Sentencing guidelines& an organi!ation*s base fine is t e lo"est of t ree numbersE e monetary loss suffered by t e victim&E e pecuniary gain received by t e defendant& or E ,n amount ranging from M8&000 to M:+&800&000 as set fort in t e >ffense 5evel Scale Individual uidelines. is

is a table of preset penalties based on t e seriousness of possible offenses.

,. rue

B. -alse

Bnder t e Corporate Sentencing guidelines& an organi!ation*s base fine is t e ig est of t ree numbersE e monetary loss suffered by t e victim&E e pecuniary gain received by t e defendant& or E ,n amount ranging from M8&000 to M:+&800&000 as set fort in t e >ffense 5evel Scale Individual uidelines. isis a table of preset penalties based on t e seriousness of possible offenses.

116. ,ccording to t e Corporate Sentencing uidelines& t e payment of full restitution to victims of crime is

considered an ade)uate form of punis ment.

,. rue

B. -alse

e guidelines re)uire t at& " enever possible& t e organi!ation must pay full restitution to t e victims of t e crime.


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&III. -raud Prevention Policy88888888888888888888888888888888888888888

11;. , multi-million dollar fraud as occurred at t e HKN company. , mid-level manager inflated revenue figuresin order to meet )uarterly targets. e officers and directors of HKN did not kno" t e fraud "as occurring7t erefore& t e company cannot be eld criminally liable for t e fraud.

,. rue

B. -alse

e corporation can be eld criminally responsible even if t ose in management ad no kno"ledge or participationin t e underlying criminal events and even if t ere "ere specific policies or instructions pro ibiting t e activityundertaken by t e employees. e acts of any employee& from t e lo"est clerk on up to t e C?>& can imputeliability upon a corporation. In fact& a corporation can be criminally responsible for t e collective kno"ledge ofseveral of its employees even if no single employee intended to commit an offense. us& t e combination ofvicarious or imputed corporate criminal liabili ty and t e ne" Sentencing uidelines for >rgani!ations creates ane traordinary risk for corporations today.

11=. ,s a general proposition& increasing t e perception of detection is t e single most effective met od of fraud prevention.

7. !rue

#. $alse

Increasing t e perception of detection may "ell be t e most effective fraud prevention met od. Controls& fore ample& do little good in forestalling internal t eft and fraud if t eir presence is not kno"n by t ose at risk. In t eaudit profession& t is means letting employees& managers& and e ecutives kno" t at auditors are actively seeking outinformation concerning internal t eft.

1+0. Bnless specific unacceptable conduct is detailed in a fraud prevention policy& t ere can be legal problems indisc arging a dis onest employee.

7. !rue

#. $alse

9any companies ave learned t at it is best to spell out specific unacceptable conduct. If t e type of conduct t at isconsidered unacceptable is not accurately detailed& t ere mig t be legal problems in disc arging a dis onestemployee. C eck "it your counsel regarding any legal considerations "it respect to a fraud policy. >ne of t emost important legal considerations is to ensure everyone and every allegation is andled in a uniform manner.

1+1. % ic of t e follo"ing affects t e et ical decisions of employeesD

,. Social pressures

#. Industry and organi!ational et ical codes

C. e la" and ot er government regulations

9. 7ll o" the a,ove

e collection of a person*s beliefs and morals makes up a set of principles kno"n as et ics. ?t ics are t e 'udgments about rig t and "rong or& more specifically& a person*s moral obligations to society t at determine a person*s actions. 4etermining et ical rig ts and "rongs is complicated by t e fact t at moral standards and generallyaccepted social be avior c ange "it time. In addition& different groups in t e same society may ave conflictingideas of rig t and "rong. ese values and et ics of an individual are reflected in t eir actions as employees. ereare four factors t at generally affect t e et ical decisions of employees

______________________________________________________________________________ Sec. 1 - Criminology / 66


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E e la" and ot er government regulationsE Industry and organi!ational et ical codesE Social pressuresE ension bet"een personal standards and organi!ational needs

1++. ,s long as a company as a detailed fraud policy in place& t ere is little need to communicate t e policy toemployees.

,. rue

B. -alse

It obviously does little good to ave a fraud or et ics policy if it is not communicated to t e employees. iscommunication can be accomplis ed in several "ays. e communication of t e policy s ould be presented in a

positive& nonaccusatory manner.

1+ . , detailed fraud prevention policy can give management legal grounds to investigate and punis violators.

7. !rue

#. $alse

,n (action constituting fraud( section in a fraud prevention policy sets fort in detail " at actions constitutefraudulent conduct. is is important as it gives management t e legal grounds to investigate and punis violators.

e actions listed can includeE ,ny dis onest or fraudulent actE $orgery or alteration of documentsE 9isapplication of funds or assetsE Impropriety "it respect to reporting financial transactionsE rofiting on insider kno"ledgeE 4isclosing securities transactions to ot ersE ,ccepting gifts from vendorsE 4estruction or disappearance of records or assetsE ,ny similar or related irregularity

1+ . , million dollar fraud as occurred at t e ,#C company. % ic of t e follo"ing conditions could make ,#Ccriminally responsible for t e acts of its employeesD

,. 9anagement kne" of t e events

#. Collective kno"ledge of t e fraud by employees

C. 9anagement actively participated

9. 7ny o" the a,ove

e corporation can be eld criminally responsible even if t ose in management ad no kno"ledge or participationin t e underlying criminal events and even if t ere "ere specific policies or instructions pro ibiting t e activityundertaken by t e employees. e acts of any employee& from t e lo"est clerk on up to t e C?>& can imputeliability upon a corporation. In fact& a corporation can be criminally responsible for t e collective kno"ledge ofseveral of its employees even if no single employee intended to commit an offense. us& t e combination ofvicarious or imputed corporate criminal liabili ty and t e ne" Sentencing uidelines for >rgani!ations creates ane traordinary risk for corporations today.

1+8. % ic of t e follo"ing are considered fraud prevention met odsD

,.


37/66

#.


38/66


39/66

Corporations and ot er organi!ations can be eld liable for criminal acts committed as a matter of organi!ational policy. $ortunately& most organi!ations do not e pressly set out to break t e la". o"ever& corporations and ot erorgani!ations may also be eld liable for t e criminal acts of t eir employees if t ose acts are done in t e course andscope of t eir employment and for t e ostensible purpose of benefiting t e corporation. ,n employee*s acts areconsidered to be in t e course and scope of is employment if t e employee as actual aut ority or apparentaut ority to engage in t ose acts.

1 . "o selling points of a fraud prevention program are fraud*s potentially negative impact on a company*s profitsand public image.

7. !rue

#. $alse

>ne of t e best "ays to sell management on fraud prevention is by s o"ing t e impact on t e bottom line. $raudimpacts net sales dollar for dollar. $or e ample& if a company nets +0 percent on sales& t ey must sell five items atregular prices to recover losses from t e t eft of one item. $raud can be very e pensive. ,dditionally& manycorporate e ecutives are more sensitive to adverse publicity t an almost any ot er issue. Certainly& one "ay toconvince management of t e logic of fraud prevention is to point out t at negative publicity& even in small cases& can

ave a devastating impact on t e bottom line. is negative impact can be eliminated or reduced by a proactivefraud prevention program.

______________________________________________________________________________ Sec. 1 - Criminology ; / 66


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I3. Punishment88888888888888888888888888888888888888888888888888888

1 . % en a criminal is sentenced to imprisonment& t e lengt of t e term is al"ays left to t e 'udge*s discretion.

,. rue

B. -alse

ere are a variety of sanctions available to t e 'udge and& " en t ey are c arged "it imposing sentences& t e 'uryas "ell. ,mong ot ers& t ere is pretrial diversion& probation& and incapacitation or incarceration. If t e sentence isimprisonment& it may be made under rules t at dictate a determinate sentence @suc as five yearsA or anindeterminate sentence @suc as five to ten yearsA. ere are some offenses " ere t e sentence is mandatory&dictated by a set of guidelines " ic typically allo" for a decrease or increase of t e stipulated amount of time to beserved if certain ot er circumstances are present @for instance& " et er t e offender "as armedA.

1 8. In t e area of criminal 'ustice& ______________ specify t e sentence for a criminal for a fi ed number of years&usually set by t e legislature& to be served upon conviction of a certain offense.

7. 9eterminate sentences

#. Indeterminate sentences

C. Split sentences


, determinate sentence is one of a fi ed number of years& usually set by t e legislature& to be served upon convictionof a certain offense. In so-called (flat( determinate sentences& t e offender must serve t e entire time in prison& sayfive years for a fraud violation. 9ore often @t oug decreasingly so in many 'urisdictionsA t e flat sentence can bereduced& usually by as muc as one-t ird& for (good be avior.( is carrot is considered important by some prisonadministrators because it offers a re"ard for conforming to institutional rules beyond t e avoidance of punis mentsmeted out "it in t e "alls& suc as solitary confinement.

1 6. e ma'ority of prison inmates "ere using drugs at t e time of t eir offense.

7. !rue

#. $alse

9ore t an four-fift s of prison inmates ave a record of prior criminal offenses. "o-t irds are incarcerated forviolent be avior& and more t an alf "ere using drugs at t e time of t eir offense& "it most of t e drug use beingon a daily basis. ,frican ,mericans account for nearly alf of t e inmates in prisons& " ile 6 percent of all inmatesare bet"een t e ages of +8 and . rior to incarceration& t e median income of inmates "as lo"er t an Ml0&000 ayear. oday& t e gro"t in prison populations as been particularly pronounced. In l=;8& t ere "ere 1 incarcerated

persons in t e B.S. per l00&000 population. at figure rose to :0 inmates per l00&000 persons in +001. e gro"tlargely "as fueled by t e imprisonment of drug offenders. ,t t e end of Gune l==6& t ere "ere l&6 0&= 0 people infederal and state prisons and local 'ails. is represents a rise of . percent over t e previous year& t oug t e rateof increase is a decline from t e average :.; percent annual gro"t during t e previous decade. ere is somet ingof a parado in t e rise in imprisonment since all reports indicate a falling off in t e amount of crime since l==+. ,tt e end of +001& t ere "ere 1&=6+&++0 people in federal and state prisons and local 'ails. #y September +00 & t isnumber 'umped 1.= percent to +&1 :&= :.

1 :. #aker& a convicted fraud offender& "as found to be a compulsive gambler. #efore trial& e "as put into atreatment program. If e completes t e program successfully& e "ill not be tried for is fraud. is type of criminal

'ustice sanction is called

,. >ptional prosecution

______________________________________________________________________________ Sec. 1 - Criminology = / 66


41/66

B. Pretrial diversion

C. 4iverted sentence


% ile not truly a sentence& since it is not t e conse)uence of a trial or a plea& pretrial diversion is often used at t elocal level for offenders " o seem suited to " at it as to offer. Bnder its terms& selected individuals& after t ey ave

been arrested but before furt er proceedings& "ill be placed into some form of treatment program. If it is assumed&for instance& t at t eir troubles "it t e criminal la" "ere fundamentally related to alco olism& t ey may be orderedto attend ,lco olics ,nonymous meetings a certain number of times eac "eek for a specified period. >t eroffenders& particularly 'uveniles& mig t be diverted to different kinds of counseling programs or placed in a remedialeducation group. ver t e last t"enty years& prison populations ave generally declined.

,. rue

B. -alse

e total number of people in 'ail and prisons in t e Bnited States as tripled over t e last t"enty years as politicians

ave pressed for toug er sentencing la"s and ave built more prisons to seek to assuage public fears about violentcrime.

1 =. In t e area of criminal 'ustice& ________________is t e planned release and community supervision ofincarcerated offenders before t e actual e piration of t eir prison sentence.

,. ardon

#. robation

C. Community release

9. Parole

arole @from t e $renc & and meaning ("ord( as in ("ord of onor(A is t e planned release and communitysupervision of offenders before t e e piration of t eir sentence. Bnder most state la"s& an offender is eligible for

parole after serving one-t ird of is sentence. arole decisions usually are made by a board or a commission& basedon its members* conclusion regarding " et er t e offender "ill remain at liberty "it out violating t e la". ere is

pressure on parole board members to be notably conservative in t eir actions& because any repetition of an offense by someone t ey release& particularly if t e offense is einous& "ill trigger community outrage against t e board. >nt e ot er and& overcro"ded prison conditions dictate early release to make room for ne"comers.

1 0. In t e criminal 'ustice system& " ic of t e follo"ing sanctions are available to t e courtsD

,. retrial diversion

#. Incapacitation

C. robation

9. 7ll o" the a,ove are o)tions

ere are a variety of sanctions available to t e 'udge and& " en t ey are c arged "it imposing sentences& t e 'uryas "ell. ,mong ot ers& t ere is pretrial diversion& probation& and incapacitation or incarceration. If t e sentence isimprisonment& it may be made under rules t at dictate a determinate sentence @suc as five yearsA or anindeterminate sentence @suc as five to ten yearsA. ere are some offenses " ere t e sentence is mandatory&

______________________________________________________________________________ Sec. 1 - Criminology 0 / 66


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dictated by a set of guidelines " ic typically allo" for a decrease or increase of t e stipulated amount of time to beserved if certain ot er circumstances are present @for instance& " et er t e offender "as armedA.

1 1. In t e area of criminal 'ustice sanctions& probation is fre)uently used for first-time fraud offenders. robationusually re)uires certain conditions. % ic of t e follo"ing is a typical condition of probationD

,. Steady employment

#. 9eet family responsibilities

C. bey all la"s. 9any 'urisdictions "ill incarcerate a probationer as a violator if t ey believe t at e as committedanot er offense. ey revoke is probation status& and t ereby avoid t e difficulties of a court proceeding. e

probationer can fig t t is disposition& and re)uest a earing& but fe" are likely to do so successfully.

1 +. rison populations nearly doubled bet"een 1=;8 and 1==6 because of a drastic increase in t e crime rate.

,. rue

B. -alse

oday& t e gro"t in prison populations as been particularly pronounced. In l=;8& t ere "ere 1 incarcerated persons in t e B.S. per l00&000 population. at figure rose to :0 inmates per l00&000 persons in +001. e gro"tlargely "as fueled by t e imprisonment of drug offenders. ,t t e end of Gune l==6& t ere "ere l&6 0&= 0 people in

federal and state prisons and local 'ails. is represents a rise of . percent over t e previous year& t oug t e rateof increase is a decline from t e average :.; percent annual gro"t during t e previous decade. ere is somet ingof a parado in t e rise in imprisonment since all reports indicate a falling off in t e amount of crime since l==+. ,tt e end of +001& t ere "ere 1&=6+&++0 people in federal and state prisons and local 'ails. #y September +00 & t isnumber 'umped 1.= percent to +&1 :&= :.

1 . ere are t"o general types of pardons. ey are

,. olitical and general

B. -ull and a,soluteD and conditional

C. eneral and unconditional


, person may apply for a pardon t at& if granted& releases t at person from furt er punis ment and restores t e civilrig ts t at are forfeited upon conviction. ese rig ts include t e rig t to vote& serve on a 'ury or old public office.

ere are t"o types of pardons (full and absolute( and (conditional.( $ull and absolute pardons are usually grantedonly after conviction and upon s o"ing t at t e offender "as& in fact& innocent. e full and absolute pardon

resident 2i on received from resident $ord before impeac ment proceedings began "as a rare e ception to t isrule. , conditional pardon usually implies guilt and for t is reason may be re'ected by t e beneficiary. e grant ofany pardon or ot er clemency is usually a prerogative of t e ? ecutive #ranc and may not be compelled by t e

petitioner.

______________________________________________________________________________ Sec. 1 - Criminology 1 / 66


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1 . 9ost ma'or prosecutions for " ite-collar crimes are generated by ____________ agencies.

7. -ederal

#. State

C. 5ocal


9ost ma'or prosecutions for " ite-collar offenses are generated by federal agencies& in part because t e ma'ority ofla"s " ic proscribe " ite-collar crime are federal statutes and rules of federal regulatory agencies. ,lso& most stateand local aut orities are more t an "illing to yield 'urisdiction to police and prosecutors " o ave larger personnel

pools t at speciali!e in comple " ite-collar crime cases.

1 8. _______________ correctional programs emp asi!e t e use of neig bor ood residential centers& alf"ayouses& and pre-release centers.

,. arole

B. Community


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3. Criminal 4ustice System8888888888888888888888888888888888888888888

1 :. In criminology& t ere is a direct correlation bet"een age and crime. ,t " at age do arrests for violent crime peakD

,. +1

B. 1$

C. +8

4. 18

e most obvious factor t at plays into t e amount of crime t at "ill be manifest is t e birt rate. e number ofstreet crimes rises " en a baby boom generation reac es adolescence& and it declines " en t at generation (agesout( of t e early crime-prone years. eaks and valleys in t e number of people in different age groups "ill causecorresponding c anges in crime rates. ,s ,merica*s population ages& o"ever& it is anticipated t at t ere "ill be arise in " ite-collar crime because suc offenses most often are committed by older persons " o ave "orkedt emselves into positions of po"er and responsibility. % ile yout s from l8 to l; make up only about 6 percent oft e ,merican population& t ey account for about +8 percent of all arrests for art I offenses. e peak age for

property crime is about l6 years& " ile for violent crime t e ig point is about l; years.

1 ;. In t e area of criminal 'ustice& a@nA __________ is one in " ic a person is sentenced to a fi ed number ofyears for committing a crime& suc as a five year sentence.

7. 9eterminate sentence

#. Split sentence

C. Indeterminate sentence


ere are a variety of sanctions available to t e 'udge and& " en t ey are c arged "it imposing sentences& t e 'ury

as "ell. ,mong ot ers& t ere is pretrial diversion& probation& and incapacitation or incarceration. If t e sentence isimprisonment& it may be made under rules t at dictate a determinate sentence @suc as five yearsA or anindeterminate sentence @suc as five to ten yearsA. ere are some offenses " ere t e sentence is mandatory&dictated by a set of guidelines " ic typically allo" for a decrease or increase of t e stipulated amount of time to beserved if certain ot er circumstances are present @for instance& " et er t e offender "as armedA.

1 =. ______________ of t e suspects arrested for violent crime are "omen.

7. 'nene-fift

C. >ne- alf


It as been said t at t e solution to t e crime problem in t e Bnited States& indeed& t roug out t e "orld& is really)uite simple 'ust turn males into females& or at least get men to be ave as "omen do. %omen account for only one-)uarter of arrests for property crimes @and t ese tend to be t e less serious offenses& suc as s opliftingA and but one-tent of t e arrests for violent crime. It as been maintained t at as t e feminist movement breac es t e "alls of

patriarc y& t e female crime rate "ould begin to appro imate t at of males& but t is as not appened& at least not todate. ere as been& o"ever& some increase in t e number of arrests of "omen for fraud as greater numbers offemales move into t e "orkplace.

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180. >ne of t e biggest differences bet"een t e police function in t e Bnited States and ?urope is t at in t e BnitedStates

7. Police o)erate ;ith local autonomy

#. olice operate on a national basis

C. olice are muc less educated

4. olice are muc better educated

5a" enforcement in t e Bnited States differs in important regards from t at in countries suc as $rance and reat#ritain. 9ost notably& ?uropean forces tend to be national& so t at coordination amongst t em is likely to be bettert an in ,merica. ere also is less likeli ood of corruption. In #ritain& for instance& officers generally are recruitedfrom places ot er t an " ere t ey "ill "ork& so t at t ey "ill not bring to t e 'ob prior personal relations ips t atmay inder t eir effectiveness. In t e Bnited States& t ere as been a constant parade of corruption scandals t atinvolve t e police in t e country*s larger cities& often in connection "it vice operations& matters suc as numbersgambling& prostitution& and narcotics.

181. ,ll information t at influences a decision-maker in reac ing decisions is kno"n as

,. 4ata

#. Information

C. 5vidence


?vidence can be defined as all t e information t at influences a decision-maker in reac ing decisions. is evidencemay take t e form of a report& a set of recommendations& or similar items. ?vidence may be )uantitative or)ualitative7 it may be ob'ective or it may ave sub'ective )ualities7 it may be absolutely compelling to a decision orit may only be mildly persuasive.

18+. e information contained in t e Bniform Crime


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9. -orgery

e BC< divides crimes into art I and art II offenses. art I offenses are murder and non-negligent manslaug ter&forcible rape& robbery& aggravated assault& burglary& larceny& arson& and auto t eft. % ile most persons "ould agreet at t ese categories appear to incorporate most serious criminal be avior& t e some" at arbitrary nature of t ecategories s ould not be overlooked.

18 . ,mong countries "it eavy urbani!ation& advanced tec nological development& and a relatively ig standardof living& t e Bnited States as a very lo" crime rate.

,. rue

B. -alse

"o facts dominate any revie" of ,merican crime statisticsE e Bnited States demonstrates a strikingly ig rate of crime compared to ot er countries " ic s are most ofits c aracteristics& t at is& eavy urbani!ation& advanced tec nological development& and a relatively ig standard of living.E % ile ,merican crime rates remain ig in terms of international comparisons& t ere as been a dramaticdecrease in t e B.S. crime rate during t e past si years.

188. e Bniform Crime


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as not appened& at least not to date. ere as been& o"ever& some increase in t e number of arrests of "omen for fraud as greater numbers of females move into t e "orkplace.

18;. ,bout o" many la" enforcement agencies e ist in t e Bnited StatesD

,. 80&000

B. 2*D***

C. 8&000


ere are appro imately +0&000 la" enforcement agencies in t e Bnited States. e ma'ority-about 1 &600-aremunicipal police departments. 5ocal 'urisdictions also maintain more t an l&000 special police units& including parkrangers& arbor police& transit police& and campus security forces. ,t t e county level& t ere are some &000 s eriff*sdepartments. In addition& almost every state maintains eit er a state police force or a ig "ay patrol unit. ,ltoget er&t ere are nearly one million persons employed in la" enforcement-bet"een 800&000 and :00&000 s"orn officers oruniformed personnel and l80&000 civilian employees.

18=. % ic of t e follo"ing surveys involve intervie"s of crime victimsD

7. ational Crime Survey

#. 2ational 3ictim Survey

C. Bniform Crime


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#.


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168. In t e area of street crime& a great deal of t e offenses are committed by a small core of career criminals.% ic of t e follo"ing is 2> one of t e generally recogni!ed traits of career criminalsD

,. Bnemployment

#. rior incarcerations

C. Cocaine use

4. ,ll of t e above are recogni!ed traits


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,. 60L-:0L

B. 1*>

C. 0L-80L


, large ma'ority of defendants released on bail return for trial. , study of eig t state 'urisdictions found t at l8L 'umped bail7 in a federal study& t is figure dropped to l0L. ose " o 'umped bail tended toE #e on bail for a longer period of timeE ave a serious prior recordE #e a drug user E ave a poor "ork recordE #e disproportionately young& male& and non" ite

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3I. 5thics "or -raud 56aminers888888888888888888888888888888888888888

16=. % eel"rig t @1=8=A defined t ree key elements of et ics. % ic of t e follo"ing is 2> one of t emD

7. :egislative ,ac@ground

#. 3alues

C. 4ecision problems

4. ,ll of t e above are elements

% eel"rig t defined et ics as (t at branc of p ilosop y " ic is t e systematic study of reflective c oice& of t estandards of rig t and "rong by " ic it is to be guided& and of t e goods to"ard " ic it may ultimately bedirected.(

is definition contains t ree key elements1A ?t ics involves )uestions re)uiring reflective c oice @decision problemsA+A ?t ics involves guides of rig t and "rong @moral principlesA

A ?t ics is concerned "it values @goodsA in erent in et ical decisions

1:0. ?t ical be avior as been described as be avior " ic produces t e greatest ___________.

,. ,d erence

#. ersonal appiness

C. 9oral impact

9. one o" the a,ove

ere are t"o standard ans"ers to " at constitutes et ical be avior @1A et ical be avior is t at " ic produces t egreatest good7 and @+A et ical be avior is t at " ic conforms to moral rules and moral principles. e most difficult

problem situations arise " en t"o or more rules conflict or " en a rule and t e criterion of t e (greatest good(

conflict.

1:1. >ne of t e key elements of et ics is a concept called reflective c oice.

7. !rue

#. $alse

>ne of t e key elements in et ics is reflective c oice. ?t ical problems almost al"ays involve pro'ecting yourselfinto a future in " ic you ave to live "it your decisions. rofessional et ics decisions usually turn on t ese)uestions (% at "ritten and un"ritten rules govern my be aviorD( and (% at are t e possible conse)uences of myc oicesD(

1:+. #lue& a Certified $raud ? aminer& ad a moral dilemma. e lo"est level of reference for moral decisions is

,. ilosop ical principles

#. Individual standards

C. !he la;


______________________________________________________________________________ Sec. 1 - Criminology 80 / 66


52/66

% en faced "it an et ics-related problem& it is tempting and appropriate to begin t e analysis of a possible action by asking (Is it legalD( e la" deals "it actions t at are permitted and pro ibited. %it all due respect to t e la"&it is nevert eless t e lo"est level of reference for moral decisions. It appens& for e ample @t oug not fre)uentlyAt at a la" may permit an action t at is pro ibited by a profession*s code of et ics.

1: . In t e realm of et ics& values are t e means of analysis and principles are t e criteria for good and evil.

,. rue

B. -alse

ere is a great difference bet"een values and principles in moral t inking. rinciples are t e means of analysis --t e "ays of t inking about moral problems. In t is regard a t eory @principleA in et ics is a t eory about t e natureand basis of morality and t e standards for moral 'udgment& " ic arises out of t e moral perple ities of everydaylife. 3alues& on t e ot er and& are t e criteria for good and evil . o a certain e tent& people can e ercise moralt inking using a principled approac . In t e end& o"ever& values necessarily enter into t e process.

1: . >ne p ilosop ical principle of et ics maintains t at a decision s ould be made "it out trying to predict" et er an action "ill probably cause t e greatest balance of good over evil. is sc ool of t oug t is called t e

,. Btilitarian principle

#. enerali!ation principle

C. Im)erative )rinci)le


e imperative principle directs a decision-maker to act according to t e re)uirements of an et ical rule. Strictversions of imperative et ics maintain t at a decision s ould be made "it out trying to predict " et er an action"ill probably create t e greatest balance of good over evil. ?t ics in t e imperative sense is a function of moral rulesand principles and does not involve any calculation of t e conse)uences. ? ample (5ying is "rong.(

1:8. Bnder t e imperative principle of et ics& lying cannot be 'ustified.

,. rue

B. -alse

Bnder t e imperative principle of et ical p ilosop y& t e rules of conduct are fairly absolute. ere are& o"ever&certain e ceptions. $or e ample& it is moral to lie in situations involving self-defense. o Jant& t e reasons to break

is strict moral code include self-defense& e tortion& or malicious misuse.

1:6. ?t ical issues are common for fraud e aminers. "o aspects of et ics operate in t e professional environment.ese t"o aspects are

7. /eneral ethics and )ro"essional ethics

#. Specific et ics and general et ics

C. rofessional et ics and specific et ics


"o aspects of et ics operate in t e professional environment -- general et ics @t e spiritA and professional et ics@t e rulesA. 9aut! and S araf @1=61A ave contributed t e follo"ing t oug ts to t e association of general et ics and

professional et ics ( e t eory of et ics as been a sub'ect of interest to p ilosop ers since t e beginnings ofrecorded t oug t. #ecause p ilosop ers are concerned "it t e good of all mankind& t eir discussions ave been

______________________________________________________________________________ Sec. 1 - Criminology 81 / 66


53/66

concerned "it " at "e may call general et ics rat er t an t e et ics of small groups suc as t e members of agiven profession. %e cannot look& t erefore& to t eir p ilosop ical t eories for direct solutions to our special

problems. 2evert eless& t eir "ork "it general et ics is of primary importance to t e development of anappropriate concept in any special field. ?t ical be avior in auditing or in any ot er activity is no more t an aspecial application of t e general notion of et ical conduct devised by p ilosop ers for men generally.(

1::. Bnder t e imperative principle of et ics& it is morally acceptable to lie in certain circumstances.

7. !rue

#. $alse

Bnder t e imperative principle of et ical p ilosop y& t e rules of conduct are fairly absolute. ere are& o"ever&certain e ceptions. $or e ample& it is moral to lie in situations involving self-defense. o Jant& t e reasons to break

is strict moral code include self-defense& e tortion& or malicious misuse.

1:;. is principle maintains t at t e ultimate criterion of an et ical decision is t e balance of good conse)uences@pleasure and avoidance of painA over evil conse)uences @displeasure and painA produced by an action

,. e enerali!ation rinciple

B. !he Utilitarian Princi)le

C. e Imperative rinciple


e Btilitarian rinciple maintains t at t e ultimate criterion of an et ical decision is t e balance of goodconse)uences @pleasure and avoidance of painA over evil conse)uences @displeasure and painA produced by an action.

e Imperative rinciple directs a decision maker to act according to t e re)uirements of an et ical rule. eenerali!ation rinciple states t at (if all relevantly similar persons acting under relevantly similar circumstances

"ere to act in a certain "ay and t e conse)uences "ould be undesirable& t en no one oug t to act in t at "ay"it out reason.(

1:=. 9ost codes of professional et ics for organi!ations @including t e Code of rofessional ?t ics for t e,ssociation of Certified $raud ? aminersA ave c aracteristics of t e imperative t eory.

7. !rue

#. $alse

9ost professional codes of et ics ave c aracteristics of t e imperative t eory. ,s a general matter& professionals aree pected to act in a manner consistent "it t eir self-imposed rules. o"ever& public critics fre)uently )uestion notonly conduct itself but t e rules upon " ic it is based. Some critics& for e ample& argue t at many of t e et icalrules by professionals are designed to be self-serving

1;0. e foremost advocate of t e imperative sc ool of et ics "as

,. %illiam


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e p ilosop er Immanuel Jant @1:+ -1;0 A "as per aps t e foremost advocate of t e imperative sc ool. Jant "asun"illing to rely solely upon decision-makers* inclinations and values for decisions in various circumstances. estro

criminology questions

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