The CEO of a major publicly traded shipping company becomes awarethatsome of the contracts she negotiated are becomingunfavorableto the company In additionTradehas declined in her country due to the strong U.S. dollar.
Because the CEO believedthatthese contracts were strong and would increaseprofits,she shared this insider knowledge with her family and encouraged them to buy stock in the company Once it was clear the contracts wereunfavorable. she informed her family to sell all of their stock in small amounts to remain "under the radar" and avoid losing their investments. The CEO resigned andthe shipping company declared bankrupt within a few months.
Which are possible legal consequencesofthe CEO's ethical lapses? Choose 2 answers

• A. Investigations will be made by the bank that processed the sale of the stock
• B. Criminal charges will be brought against the CEO and her family
• C. The shipping company will be barred from doing business in the other country
• D. Lawsuits will be filed by shareholders

You are a money laundering investigator at a financial institution. You discover that the target of one of your cases was your direct supervisor during previous employment.
How should you proceed?

• A. Use your inside information to build a stronger case
• B. Notify your current supervisor and assure him or her you will maintain confidentiality on the case
• C. Stop investigating the case and have it assigned to a coworker or supervisor
• D. Continue working the case because the target of the investigation is not a family member or close associate

A compliance officer at AirPlus a large aerospace firmthatproduces airplanes for commercial and military use was contacted by a director of one of the firm's business partners The director had concerns over potential irregularities in recent transactions and business dealings in matters connected to AirPlus and her company.
The business partners company is located in a country where state-owned enterprises are heavily involved in the airline industry AirPlus has recently wonseveral large contracts in the country to build airplanes for slate-owned enterprises.
The director of the partner company believes these contracts may have been secured through bribes paid by AirPlus to government officials and suspects that the recent unusual activity she has noted indicate her company was utilized in the bribery scheme.
The director has flagged four instances to bring to your attention Which is the BESTindicatorof bribery?

• A. The partner company recorded an increase in operating costs in financial statements in recent months and an increase in the number of employees ,
• B. Sales agents for the partner company received large bonuses after closing a deal to produce planes for the country's national airline in recent months
• C. The partner company recently appointed a new CEO whose prior experience involved managing a state-owned airline in another country
• D. The partner company received a series of zero-interest loans from the aerospace company with open-ended repayment terms in recent months

You are in the auditing department at a large publicly traded company in the healthcare sector. Your manager has asked you to assist in reviewing the financial records of a potential acquisition target a smaller company that sells medical supplies to hospitals.
The company's owners have approached your firm with an offer for sale but after an initial review of financial statements your manager is concerned about Ihe potential for inaccurate or fraudulent accounting.
You obtain the company's income statements for recent years shown below:

Which item should be the focus of your investigation into potential fraud or financial misrepresentation?

• A. Administrative and general expenses
• B. Total operating expenses
• C. Cost of goods sold
• D. Net income