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

A Deferred Prosecution Agreement (DPA) is an arrangement between a prosecutor and a company charged with a crime, where prosecution is deferred, allowing the company to take specific actions to avoid prosecution. The correct choice reflects a critical aspect of these agreements: the requirement for the company to implement corrective measures. By agreeing to such measures, the company demonstrates a commitment to rectifying its misconduct, enhancing compliance, and preventing future violations. This can be an essential factor for prosecutors, who weigh the benefits of reforming corporate behavior against the need for accountability.

While circumstances involving a company's financial standing or the admission of wrongdoing may impact a prosecutor's decision, they are not typically the primary motivations for pursuing a DPA. Moreover, the severity of the crime can influence the decision to enter into a DPA, although minor crimes alone do not guarantee such an agreement; rather, the context and the company's response play significant roles. The emphasis on corrective actions highlights a forward-looking approach that seeks to encourage compliance and ethical practices within organizations in lieu of immediate punitive measures.