What Every Auditor Needs to Know About FCPA
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Speaker : DENISE CICCHELLA
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When : Tuesday, October 29, 2024
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Time : 01 : 00 PM EST
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Denise Cicchella is a recognized expert in construction audit, protecting owners from the overpayment of construction costs due to error, negligence or fraud.
Dense is a Certified Internal Auditor, Certified Fraud Examiner, Certified Construction Auditor, Project Management Professional and Fellow of the Life Management Institute. She holds an MBA in International Business from Fairleigh Dickinson University and a BBA in Accounting from Loyola University. She is the Founding President of the New York/New Jersey Chapter of the National Association of Construction Auditors. She has audited and led audit teams for small construction project as well as multi billion dollar projects.
She is an experienced trainer and can often be seen teaching domestically and internationally.
The Foreign Corrupt Practices Act (FCPA) is a landmark piece of legislation enacted by the United States Congress in 1977. It was introduced to address concerns about the involvement of U.S. companies in corrupt practices overseas, particularly bribery of foreign officials to obtain or retain business. The FCPA has two main provisions: the anti-bribery provision and the accounting provision. Additionally, several related laws and regulations complement the FCPA's efforts to combat corruption and promote transparency in international business transactions.
- Anti-Bribery Provision: The anti-bribery provision of the FCPA prohibits individuals and companies subject to U.S. jurisdiction from bribing foreign officials to influence official actions or obtain business advantages. Under this provision, it is unlawful to offer, promise, authorize, or provide anything of value to a foreign official, directly or indirectly, to induce or reward favorable treatment in business dealings. The anti-bribery provision applies to U.S. citizens, nationals, and entities, as well as foreign companies listed on U.S. stock exchanges or engaging in activities within the U.S. that further a bribery scheme abroad.
- Accounting Provision: The accounting provision of the FCPA requires companies whose securities are listed on U.S. stock exchanges to maintain accurate books and records and to have internal controls that provide reasonable assurances against the occurrence of illegal payments, including bribery and corruption. This provision aims to ensure transparency and accountability in financial reporting by requiring companies to accurately record transactions and maintain adequate internal controls to prevent and detect illicit activities. The accounting provision complements the anti-bribery provision by addressing the financial aspects of bribery and corruption.
Related Legislation and Regulations:
- Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, contains provisions aimed at enhancing whistleblower protections and incentives to report violations of securities laws, including the FCPA. Under Dodd-Frank, whistleblowers who provide original information leading to successful enforcement actions resulting in monetary sanctions exceeding $1 million are eligible for awards ranging from 10% to 30% of the collected proceeds. This provision encourages individuals with knowledge of FCPA violations to report them to the Securities and Exchange Commission (SEC) while protecting them from retaliation by their employers.
- UK Bribery Act: The UK Bribery Act 2010 is a comprehensive anti-corruption law that criminalizes bribery of both domestic and foreign public officials, as well as private-sector bribery. The Bribery Act introduced new offenses, including the bribery of foreign public officials, failure of commercial organizations to prevent bribery, and bribery involving individuals acting on behalf of commercial organizations. The law also includes strict liability for corporate hospitality and facilitation payments, making it one of the most stringent anti-corruption statutes globally.
- OECD Anti-Bribery Convention: The Organization for Economic Co-operation and Development (OECD) Anti-Bribery Convention is an international agreement aimed at combating bribery of foreign public officials in international business transactions. The convention obligates signatory countries to criminalize bribery of foreign public officials and to establish effective enforcement mechanisms and penalties for violations. Signatories are also required to promote anti-corruption measures, including raising awareness, providing guidance to businesses, and facilitating international cooperation in investigating and prosecuting bribery cases.
- UN Convention against Corruption (UNCAC): The United Nations Convention against Corruption is a global treaty aimed at preventing and combating corruption, including bribery, embezzlement, and money laundering. UNCAC requires signatory countries to implement measures to prevent corruption in both the public and private sectors, enhance transparency and accountability, and promote international cooperation in the fight against corruption. The convention provides a comprehensive framework for addressing corruption at the national and international levels, emphasizing preventive measures, asset recovery, and mutual legal assistance in corruption-related cases.
In conclusion, the FCPA and related legislation and regulations play a crucial role in combating corruption and promoting integrity in international business transactions. By prohibiting bribery of foreign officials, ensuring transparency in financial reporting, and enhancing international cooperation, these laws and initiatives aim to foster a global business environment characterized by fairness, accountability, and ethical conduct. Compliance with these laws is essential for companies operating internationally to mitigate legal and reputational risks and uphold the highest standards of corporate governance and responsibility.
Areas Covered
- Understanding what the FCPA is and why it was enacted
- Look at common cases of FCPA violations
- Discover the penalty of non-compliance with the FCPA
Course Level - Intermediate
Who Should Attend
Auditors, Junior Legal Members, Compliance, ERM Members.
Why Should You Attend
Attendees should attend this class for several compelling reasons:
- First and foremost, the Foreign Corrupt Practices Act (FCPA) is a critical piece of legislation with significant implications for businesses operating domestically and internationally. Understanding the intricacies of the FCPA is essential for auditors, as they play a crucial role in ensuring compliance with the law and detecting potential violations within organizations.
- The FCPA prohibits bribery of foreign officials by individuals and companies subject to U.S. jurisdiction. This prohibition extends to both direct payments and indirect forms of bribery, such as offering gifts, entertainment, or other benefits to foreign officials to influence business decisions. By attending this class, auditors will gain a comprehensive understanding of the FCPA's anti-bribery provisions, including the types of conduct prohibited, the scope of covered individuals and entities, and the potential consequences of non-compliance.
- Moreover, the class will delve into the nuances of the FCPA's accounting provisions, which require companies to maintain accurate books and records and implement adequate internal controls to prevent bribery and corruption. Auditors will learn how to assess the effectiveness of internal controls related to FCPA compliance, identify red flags indicating potential violations, and conduct thorough audits to ensure adherence to the law.
- Attending this class will also provide auditors with practical tools, strategies, and best practices for conducting FCPA-related audits effectively. They will learn how to design risk-based audit procedures, gather relevant evidence, and communicate findings to management and stakeholders. Additionally, class attendees will cover recent enforcement trends, case studies, and real-world examples to illustrate the application of FCPA principles in practice.
- Furthermore, given the extraterritorial reach of the FCPA and its enforcement by both the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), auditors must stay abreast of evolving regulatory expectations and enforcement priorities. This class will offer insights into recent developments, enforcement actions, and emerging compliance challenges, enabling auditors to adapt their audit approach accordingly.
- Overall, attending this class on "What Every Auditor Needs to Know about the FCPA" is essential for auditors looking to enhance their knowledge, skills, and expertise in FCPA compliance and auditing. By gaining a deeper understanding of the FCPA's requirements and implications, auditors will be better equipped to fulfill their responsibilities, protect their organizations from legal and reputational risks, and uphold the highest standards of integrity and ethical conduct in their audit practices.
Topic Background
The Foreign Corrupt Practices Act is similar to other regulations in other countries. The Foreign Corrupt Practices Act (FCPA) is a United States federal law enacted in 1977. It prohibits bribery of foreign officials by individuals and companies operating in the United States. The FCPA has two main provisions: anti-bribery and accounting. The anti-bribery provision prohibits offering, giving, or promising anything of value to a foreign official to obtain or retain business. The accounting provision requires companies to maintain accurate books and records and to have internal controls in place to prevent bribery and corruption. The FCPA is enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). Violations of the FCPA can result in civil and criminal penalties, including fines and imprisonment.
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$160.00
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