A major impact of the Foreign Corrupt Practices Act of 1977 is that registrants subject to the Securities Exchange Act of 1934 are now required to
A) Keep records which reflect the transactions and dispositions of assets and maintain a system of internal accounting controls
B) Provide access to records by authorized agencies of the federal government
C) Records all correspondence with foreign nations
D) Prepare financial statements in accordance with international accounting standards

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act of 1977 requires registrants subject to the Securities Exchange Act of 1934 to keep records which reflect the transactions and dispositions of assets and maintain a system of internal accounting controls. This provision is aimed at preventing and detecting bribery and other corrupt practices in foreign transactions. Providing access to records by authorized agencies of the federal government and recording all correspondence with foreign nations are requirements under different statutes, and preparing financial statements in accordance with international accounting standards is not a specific requirement of the Foreign Corrupt Practices Act.

A Major Impact of the Foreign Corrupt Practices Act of 1977