The FCPA: Accounting Provisions THE FCPA: ACCOUNTING e In addition to the anti-bribery provisions, the FCPA contains accounting provi- sions applicable to public companies. The FCPA’s accounting provisions op- erate in tandem with the anti-bribery provisions and prohibit off-the-books accounting. Company management and investors rely on a company’s financial statements and internal accounting controls to ensure transparency in the finan- cial health of the business, the risks undertaken, and the transactions between the company and its customers and business partners. The accounting provi- sions are designed to “strengthen the accuracy of the corporate books and records and the reliability of the audit process which constitute the foundations of our system of corporate disclosure.”?” The accounting provisions consist of two primary These components, and other aspects of the accounting components. First, under the “books and records” pro- provisions, are discussed in greater detail below. vision, issuers must make and keep books, records, and Although the accounting provisions were originally accounts that, in reasonable detail, accurately and fairly enacted as part of the FCPA, they do not apply only to brib- reflect an issuer’s transactions and dispositions of an issu- ery-related violations. Rather, the accounting provisions er’s assets.” Second, under the “internal controls” provi- ensure that all public companies account for all of their sion, issuers must devise and maintain a system of internal assets and liabilities accurately and in reasonable detail, accounting controls sufficient to assure management’s con- and they form the backbone for most accounting fraud and trol, authority, and responsibility over the firm’s assets.” issuer disclosure cases brought by DOJ and SEC” 38 HOUSE_OVERSIGHT_022540