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:

Professional Bureaucracy

An organizational structure dominated by professionals who have control over their own work and decision-making processes.

Machine Bureaucracy

A highly structured organizational form that operates through strict procedures and rules, with tasks clearly defined and hierarchical authority.

Direct Management Supervision

A management approach where supervisors closely monitor and directly oversee their employees' work and processes.

Narrower Spans of Control

Organizational structure where a manager supervises a small number of subordinates, leading to closer supervision and more direct manager-employee interaction.