Safety and Compliance Flashcards

Under the Foreign Corrupt Practices Act (FCPA), which payment is most likely to violate the anti-bribery provisions?

Answer: A cash gift to a foreign official to win a government contract

The FCPA prohibits giving anything of value to foreign officials to get or keep business.

Besides anti-bribery, what other major requirement does the FCPA place on U.S. issuers?

Answer: Accounting and internal controls provisions

The FCPA's accounting provisions require accurate books and records and adequate internal accounting controls.

The Sarbanes-Oxley Act Section 404 requires public companies to do what?

Answer: Assess and report on the effectiveness of internal control over financial reporting

SOX 404 requires management to assess internal control over financial reporting, and in many cases an auditor must attest to that assessment.

A consultant is asked to audit a process they designed for the same client last year. What compliance concern does this raise most directly?

Answer: Self-review threat to independence

Reviewing your own work creates a self-review threat that weakens objectivity and independence.

Which practice best shows an effective corporate compliance program, according to DOJ evaluation guidance?

Answer: Periodic risk assessment, training, and confidential reporting channels

DOJ guidance stresses risk-based design, training, and safe reporting mechanisms as signs of an effective program.

A whistleblower reports securities fraud to the SEC. Which law provides financial awards and anti-retaliation protections for such reports?

Answer: Dodd-Frank Act

Dodd-Frank created the SEC Whistleblower Program, which offers awards and protection from retaliation.

Which item is generally acceptable for a consultant to accept from a client under typical gift policies?

Answer: A branded pen of nominal value

Items of nominal value usually fall within gift policies, while cash equivalents and lavish benefits do not.