US CMA Part 1 · Chapter 5 · Question 10 of 23
In addition to its anti-bribery provisions, the Foreign Corrupt Practices Act (FCPA) requires SEC registrants to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Keep books and records that accurately reflect transactions and maintain a system of internal accounting controls
Explanation
The FCPA's accounting provisions require issuers to make and keep books, records and accounts that accurately and fairly reflect transactions, and to devise and maintain a sufficient system of internal accounting controls. These apply to all SEC registrants, not only those operating abroad.
More Internal Controls MCQs
- Q12Under PCAOB standards, a material weakness in internal control over financial reporting is a deficiency, or combination of deficiencies…
- Q13How does a significant deficiency in internal control over financial reporting differ from a material weakness?
- Q14Which of the following is a general (IT general) control rather than an application control?
- Q15A payroll system automatically rejects any time card that reports more than 70 hours worked in a week. This input control is best…
- Q16Before a batch of time cards is processed, a clerk adds up the employee identification numbers on the cards, and the system recalculates…