The Foreign Corrupt Practices Act (FCPA) of 1977

question 86

Multiple Choice

The Foreign Corrupt Practices Act (FCPA) of 1977

• A) requires auditors to review and evaluate systems of internal control as a part of an audit.
• B) requires SEC registrants to maintain a reasonably complete and accurate set of records and an adequate system of internal control.
• C) requires auditors to review client's internal control system in a manner which is thorough enough to judge whether client meets the requirements of the FCPA.
• D) requires auditors to file a report with the SEC if client's internal control system is inadequate.

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Definitions:

Interest Rate

A cost, depicted as a proportion of the borrowed sum, which a lender demands from a borrower in exchange for asset usage.

Rational Behavior

A theory in economics suggesting that individuals make decisions based on maximizing utility and firms aim to maximize profits.

Smooth Convex Preferences

Preferences characterized by continuous and consistently increasing utility, indicating a reasoned and balanced choice pattern.

Borrow

The act of receiving something of value in exchange for the promise to return it or its equivalent value at a later date.