What should an auditor do when becoming aware of violations of the FCPA?
A)Contact foreign officials in the country where the client has business operations.
B)Notify the audit committee about the violations,their circumstance,and the effect on the financial statements.
C)Contact the U.S.marshals.
D)Design internal controls to deter improper payments.

Question

Quizplus · Accepted Answer

When an auditor becomes aware of violations of the FCPA, the best course of action is to notify the audit committee about the violations, their circumstances, and the effect on the financial statements. This is because the audit committee is responsible for overseeing the company's financial reporting process and ensuring compliance with relevant laws and regulations. Contacting foreign officials in the country where the client has business operations or contacting the U.S. marshals may not be appropriate actions for an auditor, as they could potentially interfere with ongoing investigations or violate confidentiality agreements. Designing internal controls to deter improper payments may be a proactive step, but it may not be sufficient to address existing violations.

What Should an Auditor Do When Becoming Aware of Violations