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ICAEW Law 10: Criminal law. > 10. STUDY MANUAL questions on Criminal law. > Flashcards

10. STUDY MANUAL questions on Criminal law. Flashcards

1
Q

Financial Wizards LLP invites 20 senior partners in three local accountancy firms to an England v Wales rugby match, in the hope of securing new business.

Has an offence been commited under the Bribery Act (2010)?

A

No. Such normal corporate hosipitality is likely to be regarded as entirely proper.

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2
Q

Jack offers a HMRC inspector a sum of money to turn a blind eye to a minor irregularity in his financial records, but the inspector refuses to accept it.

Has an offence been committed under the Bribery Act (2010)?

A

Yes. The offering of a bribe is an offence, even if that offer is declined.

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3
Q

Angela is an auditor working at Frazzle Ltd. She believes that accounting irregularities point to the Managing Director being involved in criminality. She should …

A

Report the matter to her firm’s MLRO, and ONLY to that person.

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4
Q

A builder always requiring payment in cash should ALWAYS be reported to the NCA?

A

No. Only if, for example, it is not all being declared as income.

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5
Q

A client discloses over a business lunch that he is paying builders working on his home in cash, believing that the good price he has been offered is as a result of their not declaring the income.

Should this be disclosed to the MLRO/NCA?

A

Yes.

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6
Q

Which act governs the law on whistleblowing?

A

The Public Interest Disclosure Act (1998)

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7
Q

T/F: A person making a qualifying disclosure must be able to show, on the balance of probabilities, that the matters alleged are true.

A

FALSE

they need only show that they had a ‘reasonable belief’

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8
Q

The standard of proof required for a whistleblowing disclosure is that the worker had a ‘…’ of the alleged wrongdoing.

A

reasonable belief

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9
Q

T/F: A whistleblowing disclosure must always be made to a person’s employer in the first instance.

A

FALSE

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10
Q

In the event of a valid whistleblowing, the whistleblower (is / is not) entitled to claim damages.

A

is

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11
Q

Whistleblowing legislation is designed to …

A

protect the worker

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12
Q

T/F: Whistleblowing legislation exists to punish employers.

A

FALSE

It is to protect workers making qualifying disclosures.

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13
Q

The three principal ways of committing fraud under the Fraud Act (2006) are:

A

Fraud by false representation.
Fraud by failure to disclose information.
Fraud by abuse of position.

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14
Q

T/F: The criminal offence of fraudulent trading requires that the relevant company is insolvent or in liquidation.

A

FALSE

Fraudulent trading may be going on in a profitable, going concern.

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15
Q

The three principal offences under insider dealing legislation are:

A

Dealing.
Encouraging another to deal.
Improper disclosure of inside information.

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16
Q

T/F: an offence is commited under insider dealing legislation even if the reason for ‘encouraging another to deal’ is not disclosed.

A

TRUE

17
Q

T/F: an offence is commited under insider dealing legislation even if the person who has been ‘encouraged to deal’ does not actually do so.

A

TRUE

18
Q

The maximum penalty for insider dealing is … imprisonment.

A

7 years

19
Q

Inside information is PSI* relating to a SI of securities that are PA and not to securites generally. It must, if MP, be likely to have a SE on P and it must be specific or P.

A

price sensitive information

20
Q

Inside information is PSI relating to a SI* of securities that are PA and not to securites generally. It must, if MP, be likely to have a SE on P and it must be specific or P.

A

specific issuer

21
Q

Inside information is PSI relating to a SI of securities that are PA* and not to securites generally. It must, if MP, be likely to have a SE on P and it must be specific or P.

A

price affected

22
Q

Inside information is PSI relating to a SI of securities that are PA and not to securites generally. It must, if MP*, be likely to have a SE on P and it must be specific or P.

A

made public

23
Q

Inside information is PSI relating to a SI of securities that are PA and not to securites generally. It must, if MP, be likely to have a SE* on P and it must be specific or P.

A

significant effect

24
Q

Inside information is PSI relating to a SI of securities that are PA and not to securites generally. It must, if MP, be likely to have a SE on P* and it must be specific or P.

A

price

25
Q

Inside information is PSI relating to a SI of securities that are PA and not to securites generally. It must, if MP, be likely to have a SE on P and it must be specific or P*.

A

precise

26
Q

T/F: A person accepting a bribe is guilty of an offence under the Bribery Act (2010)

A

TRUE

27
Q

Making or attempting to make the proceeds of crime appear respectable.

A

money laundering

28
Q

Any activity by which the apparent source and ownership of money representing the proceeds of crime are changed so that the money appears to have been obtained legitimately.

A

money laundering

29
Q

Three principal defences to a charge of failure to report money laundering DIRECTLY to the NCA by an accountant employed in a firm.

A

Insufficient training.
Specific privileged circumstances.
Report was made to the MLRO.

30
Q

T/F: general legal privilege exists in respect of an accountant giving advice on revenue (tax) law.

A

FALSE

General legal privilege applies only to solicitors, barristers, e.t.c. and NOT to accountants.

31
Q

The maximum penalty for …. is 7 years imprisonment.

A

insider dealing

32
Q

The maximum penalty for money laundering is … imprisonment.

A

14 years

33
Q

The maximum penalty for … is 14 years imprisonment.

A

money laundering

34
Q

The maximum penalty for failure to report money laundering is … imprisonment.

A

5 years

35
Q

The maximum penalty for … is 5 years imprisonment.

A

failure to report money laundering

36
Q

The maximum penalty for tipping off is … imprisonment.

A

2 years

37
Q

The maximum penalty for … is 2 years imprisonment.

A

tipping off

38
Q

The maximum penalty for fraud or bribery is … imprisonment.

A

10 years

39
Q

The maximum penalty for … is 10 years imprisonment.

A

fraud or bribery

ICAEW Law 10: Criminal law. (8 decks)

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