LPEC STANDARD EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔Q: What is the significance of Chapter 8 of the Federal Sentencing Guidelines
(FSGO)? - ✔✔A: It provides criteria for building effective ethics and compliance
programs, including incentives for organizations to prevent and detect criminal conduct,
and standards for director and executive accountability.
✔✔Q: What revision was made to FSGO in 2004? - ✔✔A: The 2004 revision
emphasized the need for organizations to assess the effectiveness of their ethics and
compliance programs.
✔✔Q: What is the Caremark Doctrine (1996)? - ✔✔A: It established that directors have
Duties of Care and Loyalty, and can be held accountable for failing to implement
sufficient internal controls.
✔✔Q: What is the Sarbanes-Oxley Act (SOX) of 2002? - ✔✔A: SOX mandates financial
reporting transparency and corporate governance in public companies, protects
whistleblowers, and holds boards and accounting firms accountable.
✔✔Q: What is the Dodd-Frank Act (2010)? - ✔✔A: Dodd-Frank targets financial system
sectors believed to cause the 2008 crisis, strengthens whistleblower protections, and
increases oversight of banks and lenders.
✔✔Q: What are some recent DOJ guidance updates (2017-2025)? - ✔✔A: Updates
include focus on management support, program design, individual accountability,
voluntary self-disclosure, incentive compensation, risks of new technology (e.g., AI),
and the use of independent monitors.
✔✔Q: What does the UK Bribery Act of 2010 do? - ✔✔A: It criminalizes bribery,
including bribing foreign officials, and holds companies accountable for failing to prevent
corruption, with near-universal jurisdiction.
QUESTIONS SET A+
✔✔Q: What is the significance of Chapter 8 of the Federal Sentencing Guidelines
(FSGO)? - ✔✔A: It provides criteria for building effective ethics and compliance
programs, including incentives for organizations to prevent and detect criminal conduct,
and standards for director and executive accountability.
✔✔Q: What revision was made to FSGO in 2004? - ✔✔A: The 2004 revision
emphasized the need for organizations to assess the effectiveness of their ethics and
compliance programs.
✔✔Q: What is the Caremark Doctrine (1996)? - ✔✔A: It established that directors have
Duties of Care and Loyalty, and can be held accountable for failing to implement
sufficient internal controls.
✔✔Q: What is the Sarbanes-Oxley Act (SOX) of 2002? - ✔✔A: SOX mandates financial
reporting transparency and corporate governance in public companies, protects
whistleblowers, and holds boards and accounting firms accountable.
✔✔Q: What is the Dodd-Frank Act (2010)? - ✔✔A: Dodd-Frank targets financial system
sectors believed to cause the 2008 crisis, strengthens whistleblower protections, and
increases oversight of banks and lenders.
✔✔Q: What are some recent DOJ guidance updates (2017-2025)? - ✔✔A: Updates
include focus on management support, program design, individual accountability,
voluntary self-disclosure, incentive compensation, risks of new technology (e.g., AI),
and the use of independent monitors.
✔✔Q: What does the UK Bribery Act of 2010 do? - ✔✔A: It criminalizes bribery,
including bribing foreign officials, and holds companies accountable for failing to prevent
corruption, with near-universal jurisdiction.
