The primary purpose of the Foreign Corrupt Practices Act of 1977 was
A)to require corporations to maintain a good system of internal control.
B)to prevent the bribery of foreign officials by American companies.
C)to require the reporting of any material fraud by a business.
D)All of the above are required by the act.

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act of 1977 was enacted to prevent American companies from bribing foreign officials in order to obtain or retain business, and to establish accounting and transparency requirements to ensure compliance with this objective. While the Act indirectly supports the importance of maintaining a good system of internal control and reporting material fraud, these are not the primary purposes of the Act.

The Primary Purpose of the Foreign Corrupt Practices Act of 1977