The FCPA requires that a system of internal accounting controls
A) guarantee that profits are correctly stated in a firm's audited financial statements.
B) provide absolute assurance that transactions are executed only in accordance with management's authorization.
C) provide reasonable assurance that access to assets is permitted only in accordance with management's authorization.
D) ensure the long-run profitability of an organization.

Question

Quizplus · Accepted Answer

The FCPA (Foreign Corrupt Practices Act) requires a system of internal accounting controls that provide reasonable assurance that access to assets is permitted only in accordance with management's authorization. This is to prevent corruption and ensure that business activities are conducted in a legal and ethical manner. It does not guarantee the correctness of profits or ensure long-run profitability. It also does not provide absolute assurance that all transactions are executed in accordance with management's authorization.

The FCPA Requires That a System of Internal Accounting Controls