Mulcare Corp

question 16

Multiple Choice

Mulcare Corp.started a compliance program to prevent and detect criminal conduct within the company and had specific,high-level officers in charge of overseeing the program.The company effectively communicated the program to its employees and monitored those employees who were in a position to cheat.It promptly disciplined anyone who broke the law.One effect of having this program is

• A)federal investigators would no longer investigate the company since Mulcare could take care of any problems internally.
• B)federal investigators might be convinced to limit any prosecution to those directly involved rather than attempting to get a conviction against high-ranking officers or against the company itself.
• C)the Federal Sentencing Guidelines no longer apply.
• D)any cases would be prosecuted in state,rather than federal,court.

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Definitions:

Extraordinary Item

An extraordinary item is a significant transaction or event that is unusual, infrequent, and not expected to recur in the foreseeable future, requiring separate disclosure in financial statements for clarity.

Disposal Business Segment

Refers to the process of selling, closing, or abandoning a part of a company's operations or divisions.

Interim Financial Reporting

The reporting of the financial results of any period that is shorter than a fiscal year, such as quarterly or semi-annual reports.

Permanent Inventory

An inventory management method where stock levels are continually updated to reflect purchases and sales.