Certified Fraud Examiner Practice 2025 - Free Practice Questions and Study Guide

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What is the purpose of a Deferred Prosecution Agreement?

To immediately prosecute the company

To delay prosecution while remedial actions are taken

A Deferred Prosecution Agreement (DPA) serves to delay prosecution while a company takes specific remedial actions to address issues that may have led to criminal conduct. This arrangement allows the company to demonstrate its commitment to compliance and internal reforms. During the time the DPA is in effect, the company typically agrees to adhere to certain conditions set by the prosecutor, such as implementing new compliance programs and cooperating with ongoing investigations. If the company successfully meets the terms of the agreement, the prosecution may be dismissed, allowing the company to avoid the legal consequences that could result from an immediate prosecution.

The focus of a DPA is on cooperation and remediation rather than punishment, which is why options referring to immediate prosecution, reduced penalties without the condition of remediation, or absolution from charges do not capture the essence of a DPA.

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To reduce penalties imposed on a company

To absolve the company from all charges

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