A Conflict of Interest Is Corruption That Can Be Defined

question 21

Multiple Choice

A conflict of interest is corruption that can be defined as:

• A) Offering, giving, receiving or soliciting anything of value in order to influence an official act
• B) Corrupt employees demand payments from vendors for deciding in the vendors' favor
• C) Corrupt employees are rewarded for making favorable decisions
• D) The employee has an undisclosed economic or personal stake in a transaction that adversely affects the company

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Definitions:

Audit Committee

A subset of a company's board of directors responsible for overseeing the financial reporting process, auditing procedures, and compliance with laws and regulations.

Internal Accounting Controls

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Securities Exchange Act

A law governing the secondary trading of securities in the United States, aiming to ensure transparency and fairness.

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their intermediaries from making corrupt payments to foreign officials for the purpose of obtaining or keeping business.