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Your individual project in this Unit is based on the "SAP Found in Violation of FCPA" case study located at the end of Chapter 2 in your textbook. In order to complete this assignment, read that case study and respond to the questions below,
Do you think that the penalty for violation of the internal control provision and the books and records provision of the FCPA is stiff enough to motivate companies to implement systems capable of detecting bribes? What changes, if any, would you suggest to the FCPA?
When an organization implements a major accounting software package, it also inherits the system of internal control that is built into the software—good, bad, or indifferent. What can be done if it is discovered, months after the software has been purchased and installed, that the software is lacking in good internal control?
IT workers have a key role in designing and implementing the internal controls associated with systems that automate the processing of business transactions, such as the payment of suppliers, employees, and business partners and the receipt of payments from customers. What can IT workers do to prepare themselves for this responsibility? Who should the IT workers collaborate with when evaluating or designing the automated internal controls of a computer-based information systems?
The Foreign Corrupt Practices Act (FCPA) is a U.S. federal law that prohibits American companies and individuals from bribing foreign officials in order to obtain or retain business. It is a criminal law that is enforced by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC).
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If a company is found to be in violation of the FCPA, it can face significant consequences, including criminal and civil penalties, as well as damage to its reputation. Companies that are found to be in violation of the FCPA may be required to pay substantial fines and may also be required to implement additional internal controls and compliance measures to prevent future violations.
It is not clear from your statement which company, specifically, was found to be in violation of the FCPA. If you have more information about the specifics of the situation, I would be happy to try to provide additional guidance.
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