The Foreign Corrupt Practices Act (FCPA) of 1977

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act (FCPA) of 1977 requires SEC registrants to maintain a reasonably complete and accurate set of records and an adequate system of internal control. This means that companies must have effective internal control procedures in place to prevent and detect corruption, bribery, and other unethical behaviors. While auditors may review and evaluate clients' internal control systems as part of an audit, they are not required to file a report with the SEC if the system is inadequate. The responsibility for maintaining adequate internal controls falls on the company itself.