Policing White-Collar Crime Exam Prep Chapter 13

Chapter 13: Policing White-Collar Crime

Test Bank

Multiple Choice

1. What type of agencies are involved in policing white-collar crime?
   1. federal agencies, private agencies, and state agencies
   2. private agencies, formal criminal police agencies, governmental regulatory

agencies

• 1. local police, state agencies, and governmental regulatory agencies
  2. state police, formal criminal police agencies, and private agencies

Learning Objective: 13-1: Analyze the three types of agencies that exist to police and investigate white-collar crime.

Cognitive Domain: Knowledge

Answer Location: Agencies Involved in Responding to White-Collar Crime

Difficulty Level: Easy

1. How are state, local, and federal regulatory agencies involved in responding

to white-collar crime?

• 1. investigating and prosecuting serious white-collar crimes cases
  2. ensuring that businesses and corporations are not violating federal, state or

local laws and regulations

• 1. providing assistance to prosecutors at every stage of the investigation

process

• 1. referring offending businesses or corporations in violation of laws and

regulations for criminal prosecution

Learning Objective: 13-1: Analyze the three types of agencies that exist to police and investigate white-collar crime.

Cognitive Domain: Knowledge

Answer Location: Agencies Involved in Responding to White-Collar Crime

Difficulty Level: Easy

3. What is the first stage of a white-collar investigation?

1. locating the victims of the crime
2. deciding which charges to formally file
3. identifying the scope of the crime
4. identifying the offender(s)

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Stages of the White-Collar Crime Investigation

Difficulty Level: Medium

1. Which of the following is a major difference between investigating white-collar

crime and traditional crime?

• 1. it takes longer to prepare for interrogations of white-collar criminals than for

conventional offenders

• 1. In traditional crime there are usually multiple offenders to be interviewed.
  2. a white-collar crime case is usually built more quickly because evidence

is easier to collect.

• 1. In traditional crime, a suspect is identified more easily.

Learning Objective:

Cognitive Domain: Comprehension

Answer Location: Time

Difficulty Level: Medium

1. Which strategy for gathering evidence in a white-collar crime case specifically

employs the principle of skepticism?

1. audits
2. record reviews
3. undercover strategies
4. whistleblowers

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Audits

Difficulty Level: Medium

1. How does the offender/witness relationship play into investigations of white-

collar crime?

1. An offender often has power and class status advantage over the witness

to use as influence.

1. Witnesses that investigators want to interview will be in a trusting relationship

with the offender.

1. The witnesses are often people who work outside the company and are

hard for investigators to track down.

1. Witnesses often exaggerate the offender’s actions.

Learning Objective:

Cognitive Domain: Comprehension

Answer Location: Relationship Dynamics

Difficulty Level: Medium

1. How does time affect the start of a white-collar crime investigation?
2. A long period of time passes before a crime is reported because victims

often don’t know they were victimized.

1. It is taking longer and longer for the courts and the laws to catch up to the

advances offenders are making in the methods by which they commit their

crimes.

1. It can take an extraordinary amount of time to pour through the records and

evidence collected in an investigation.

1. It takes a longer amount of time to finalize evidence to help prosecute an

offender and any co-offenders and complete the investigation.

Learning Objective:

Cognitive Domain: Comprehension

Answer Location: Time

Difficulty Level: Medium

1. The collaboration of different agencies in investigating a white-collar

crime leads to which problem?

1. takes longer to get the investigation organized
2. increases complexity of the investigation
3. decreases the resources (manpower) each agency can expend
4. difficulty sharing information

Learning Objective: 13-3: Summarize the problems inherent in investigating white-collar crime.

Cognitive Domain: Knowledge

Answer Location: Complexity

Difficulty Level: Easy

1. Which of the following is a suggestion that has been made to improve law

enforcement’s response to white-collar crime?

1. ‘publicizing’ white-collar criminals by arresting them in the workplace
2. focusing less on the search for a smoking gun because it likely doesn’t exist
3. following other evidence besides the “money trail”
4. develop programs on investigations

Learning Objective: 13-4: Explain why improvements are needed in law enforcement’s response to white-collar crime and what type of improvements have been suggested.

Cognitive Domain: Comprehension

Answer Location: Suggestions for Improving the Law Enforcement Response to White-Collar Crime

Difficulty Level: Medium

1. Which of the following is a characteristic of a white-collar undercover

investigation?

1. The investigations are typically a “reverse sting” and undercover officials

wait for offenders to commit their crimes.

1. Individuals often claim they are coerced into offending.
2. While less dangerous than street crime and contrary to most beliefs,

undercover white-collar investigations are dangerous.

1. Undercover officials in a white-collar setting rarely spend an extended

amount of time undercover.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Undercover Investigations

Difficulty Level: Medium

1. What is a self-policing strategy?
2. Business find misconduct within their own companies to avoid law

enforcement intervention.

1. Businesses set up specific strategies to help minimize the economic costs of

employee misconduct.

1. Self-policing strategies allow businesses to have employees who commit

crimes arrested.

1. Employees use self-policing strategies to monitor coworkers who may be

engaged in misconduct.

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Knowledge

Answer Location: Self-Policing and White-Collar Crime

Difficulty Level: Easy

1. Category III of which strategy focuses on getting employees to share

information about co-workers’ misconduct?

1. loss prevention
2. compliance
3. regulatory
4. private enforcement

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Knowledge

Answer Location: Loss Prevention Strategies

Difficulty Level: Easy

13. Which of the following is a difference between an internal and an external

investigation of a white-collar crime?

1. Businesses cannot fire an employee suspected of misconduct unless they

refer the case to authorities.

1. Businesses use an information-gathering approach to internal interviews

as opposed to the adversarial approach of criminal investigations.

1. It is easier for an internal investigation to sort through business records to

gather evidence.

1. Businesses investigate their employees when they suspect misconduct of

any kind.

Ans: B

Learning Objective: 13-6: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Comprehension

Answer Location: Loss Prevention Strategies

Difficulty Level: Medium

1. Corporations who fulfill requirements for strong compliance programs within

their company are eligible for what type of result if wrongdoing is found?

1. They are less likely to undergo a surprise audit from a regulatory agency.
2. They get to join an organization created by the U.S. Department of Justice

that promotes the enforcement of white-collar crime.

1. They could receive lighter sanctions.
2. They must turn over any person involved in the misconduct to authorities.

Ans: C

Learning Objective: 13-6 : Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Knowledge

Answer Location: Compliance Strategies

Difficulty Level: Easy

1. What type of a red flag of white-collar crime typically surfaces during audits?
2. an excess of documentation
3. lack of payments to some vendors
4. managers override internal controls
5. smaller payments to new vendors

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Knowledge

Answer Location: Audits

Difficulty Level: Easy

1. What is a possible job a forensic accountant may do during or after an audit?
2. calculate economic loss due to misconduct
3. recommend a course of action to prevent fraud
4. consult with law enforcement on possible charges
5. identify witnesses who may be lying

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Knowledge

Answer Location: Forensic Accounting

Difficulty Level: Easy

1. Regulatory agencies engage in policing activities based on what?
2. the type of offending they uncover
3. the number of crimes they can handle
4. their mission statements
5. The severity of the crimes

Learning Objective: 13-6 : Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Knowledge

Answer Location: Regulatory Policing and White-Collar Crime

Difficulty Level: Easy

18. In the example of a restaurant that was discovered to have more than one

hundred fresh rodent droppings in the kitchen, how was this misconduct, and many other similar cases, discovered?

1. self-policing
2. anonymous tip
3. regulatory officers
4. whistleblower

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Regulatory Officials as Police Officers

Difficulty Level: Medium

19. Which of the following describes one of the regulatory policing styles?

1. detective
2. free agent
3. surveillance
4. free style

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Regulatory Policing Styles

Difficulty Level: Medium

20. What type of strategy is being employed if police focus solely on catching

and punishing traffic violators?

1. retributive
2. free agent
3. watchmen
4. undercover

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Regulatory Policing Styles

Difficulty Level: Medium

21. Which style addresses violations most aggressively?

1. free agent style
2. legalistic agencies
3. watchmen style
4. retributive strategy

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Regulatory Policing Styles

Difficulty Level: Medium

22. Which of the following is a criticism of regulatory policing?

1. Regulations are not enforced equally.
2. Regulatory efforts breed misconduct.
3. Regulatory officers are becoming too aggressive.
4. There is a growing trend of corruption.

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Regulatory Policing Styles

Difficulty Level: Medium

23. How do some scholars believe corporate misconduct should be dealt with?

1. as a regulatory violation
2. with tougher regulations
3. as a violation of criminal law
4. with increased monetary sanctions

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Criticisms and Concerns about Regulatory Policing

Difficulty Level: Medium

24. How can international cooperation in policing white-collar crime be

improved?

1. develop police networks with a common language
2. work on white-collar cases that have similar characteristics
3. agree on an international white-collar crime headquarters
4. create and agree on one type of record-keeping standard

Learning Objective: 13-: Analyze the barriers that complicate global policing of white-collar crime and how they can be overcome to successfully investigate misconduct internationally.

Cognitive Domain: Comprehension

Answer Location: The Global Police and White-Collar Crime

Difficulty Level: Medium

25. Attempts by global police agencies to use law enforcement strategies to

investigate and prevent white-collar crime internationally have been hampered by which of the following?

1. There is widespread disagreement about which language to use for

communication.

1. White-collar crime has different characteristics in many countries.
2. Getting cooperation among many global policing agencies makes

collaborating on cases difficult.

1. Some countries want to take the lead deciding which type of cases to pursue.

Learning Objective: 13-: Analyze the barriers that complicate global policing of white-collar crime and how they can be overcome to successfully investigate misconduct internationally.

Cognitive Domain: Comprehension

Answer Location: The Global Police and White-Collar Crime

Difficulty Level: Medium

True/False

1. One of two ways in which white-collar crime comes to the attention of

authorities is through evidence that is uncovered as part of routine reviews of financial records.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Stages of the White-Collar Crime Investigation

Difficulty Level: Medium

1. After an email is deleted, investigators are not able to recover it.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Knowledge

Answer Location: Record Reviews

Difficulty Level: Easy

1. The dynamics of undercover work can contribute to police corruption.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Undercover Investigations

Difficulty Level: Medium

1. The fact that offenders usually have more resources, such as money and

lawyers, contributes to the resource problems of enforcing white-collar crime.

Learning Objective:

Cognitive Domain: Comprehension

Answer Location: Resource Problems

Difficulty Level: Medium

1. The fact that investigators do not have the same approach with different

cases is a problem with addressing white-collar crimes.

Learning Objective:

Cognitive Domain: Comprehension

Answer Location: Complexity

Difficulty Level: Medium

1. Universities are still emphasizing traditional crime over white-collar crime with

criminal justice students.

Learning Objective: 13-: Explain why improvements are needed in law enforcement’s response to white-collar crime and what type of improvements have been suggested.

Cognitive Domain: Comprehension

Answer Location: Suggestions for Improving the Law Enforcement Response to White-Collar Crime

Difficulty Level: Medium

1. Compliance strategies focus on detecting and preventing corporate

criminality.

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Comprehension

Answer Location: Compliance Strategies

Difficulty Level: Medium

1. Interviews that are conducted by a business can result in termination if

an employee pleads the fifth.

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Comprehension

Answer Location: Loss Prevention Strategies

Difficulty Level: Medium

1. If strong compliance standards are in place, corporations can still receive

harsher sanctions for their crimes.

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Comprehension

Answer Location: Compliance Strategies

Difficulty Level: Medium

1. The legalistic approach to enforcing white-collar crime usually involves

staying out of the way until a crime is committed.

Learning Objective: 13-: Explain the way in which regulatory agencies police white-collar crime.

Cognitive Domain: Comprehension

Answer Location: Regulatory Policing Styles

Difficulty Level: Medium

Short Answer

1. List in order and briefly describe the stages of a white-collar crime

investigation after a referral has been made to alert the authorities to a crime.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Stages of the White-Collar Crime Investigation

Difficulty Level: Medium

2. List three characteristics of an undercover white-collar investigation that are

distinctly different from a traditional undercover investigation.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Analysis

Answer Location: Undercover Investigations

Difficulty Level: Medium

1. List four of the five problems that authorities have when it comes to

addressing crime.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Problems Addressing White-Collar Crime Through a Law Enforcement Response

Difficulty Level: Medium

1. Describe the three categories of loss prevention strategies.

Learning Objective: 13-: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Comprehension

Answer Location: Loss Prevention Strategies

Difficulty Level: Medium

1. List two suggestions for improvement in regards to international crime and

enforcement.

Learning Objective: .

Cognitive Domain: Analysis

Answer Location: The Global Police and White-Collar Crime

Difficulty Level: Medium

Essay

1. Discuss the pros, cons, and potential ethical issues regarding the use of

undercover investigations in white-collar crime.

Learning Objective:

Cognitive Domain: Analysis

Answer Location: Undercover Investigations

Difficulty Level: Hard

1. Summarize the four of the six main problems addressing white-collar crime.

Learning Objective: 13-2: Discuss the stages of investigating white-collar crime that most agencies use to build a case.

Cognitive Domain: Comprehension

Answer Location: Problems Addressing White-Collar Crime Through a Law Enforcement Response

Difficulty Level: Medium

1. Choose a self-policing strategy and write a persuasive argument for its use

versus a governmental policing strategy.

Learning Objective: 13: Describe the concept of self-policing and the type of strategies companies can use to avoid white-collar misconduct.

Cognitive Domain: Analysis

Answer Location: Self-Policing and White-Collar Crime

Difficulty Level: Hard