Which of the Following Statements the Foreign Corrupt Practices Act

question 53

Multiple Choice

Which of the following statements the Foreign Corrupt Practices Act of 1977 (the FCPA) and its effect on the accounting profession is FALSE?

• A)The FCPA requires companies registered with the SEC to devise and maintain a system of internal accounting control.
• B)When a company's accountants are taken to court with FCPA violations,the case is litigated (decided by a judge).
• C)The FCPA requires companies registered with the SEC to keep books,records,and accounts that,in reasonable detail,accurately and fairly reflect the transactions and dispositions of the company's assets.
• D)The auditor of an entity subject its provisions can also be held directly responsible under the provisions of the FCPA.

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Definitions:

Related-Party Transactions

Transactions occurring between parties where one is able to exert significant influence over the operations of the other, such as between a parent company and its subsidiary.

Affiliated Entities

Affiliated entities are companies that are related through common ownership or control, potentially impacting financial statements and disclosures.

Report Form

A layout of financial statements where the balance sheet is presented vertically, with assets listed first, followed by liabilities and equity.

Account Form

A presentation format for balance sheets where assets are listed on the left side and liabilities and equity on the right side.