Impact of Foreign Corrupt Practices Act on U.S. Business: Report to the Congress |
Common terms and phrases
accounting control systems accounting profession act's accounting provisions act's antibribery provisions act's impact AICPA ambiguities American Bar Association areas assets audit committees believe books and records bribery prohibitions bribery provisions bribes business community Chairman changes codes of conduct Commission company's comply Congress constitutes compliance corporate accountability corporate books corporate bribery corporate codes corporate funds corporate officials Corrupt Practices Act cost burden cost-benefit analysis criminal penalties criticisms discussed domestic concerns draft report effect enforcement action evaluation export disincentives FCPA foreign business Foreign Corrupt Practices foreign officials GAO COMMENTS GAO's improper foreign payments inadequate internal accounting control internal audit internal control international antibribery agreement issue issuer January 13 materiality standard ment overseas business perceived percent policies questionable payments rated the clarity reasonable assurances recommendation result Review Procedure sample SEC registrants slush funds survey systems of internal tion transactions U.S. companies U.S. corporate U.S. Trade U.S. Trade Representative uncertainty
Popular passages
Page 75 - ... (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary (I) to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements, and...
Page 10 - ... (A) make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer; and (B) devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances...
Page 16 - An omitted fact is material if there is a substantial likelihood that a reasonable shareholder would consider it important in deciding how to vote.
Page 75 - ... (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
Page 16 - Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
Page 27 - foreign official" means any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or any person acting In an official capacity for or on behalf of any such government or department, agency, or instrumentality.
Page 54 - In many instances, defects in the corporate 'accountability system-were instituted at lower• levels in : • f the corporate hierarchy. Whatever their origin, the Commission regards defects in the system of corporate accountability to be matters of serious concern. Implicit in the requirement to file accurate financial statements is the requirement that they be based on adequate and truthful books and records. The integrity of corporate books and records is essential to the entire reporting system...
Page 69 - Systems of controls will, of course, vary from company to company. The size of the business, diversity of operations, degree of centralization of financial and operating management, amount of contact by top management with day-to-day operations, and numerous other circumstances are factors which management must consider in establishing and maintaining an internal accounting controls system.
Page 107 - ... proceed in good faith to use its influence, to the extent reasonable under the issuer's circumstances, to cause such domestic or foreign firm to devise and maintain a system of internal accounting controls consistent with paragraph (2).
Page 54 - ... slush funds" disbursed outside the normal financial accountability system. These secret funds were used for a number of purposes, including in some instances, questionable or illegal foreign payments. These practices cast doubt on the integrity and reliability of the corporate books and records which are the very foundation of the disclosure system established by the federal securities laws.