What are the FCPA record keeping and accounting requirements?
In adopting the FCPA, Congress believed that inadequate corporate accountability and a lack of accurate record-keeping were closely related to the issue of improper foreign payments. Accordingly, the FCPA requires any issuer to make and keep books, records and accounts which, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets. The FCPA also requires an issuer to devise and maintain a system of internal accounting controls which provides reasonable assurances that transactions are properly authorized. The record-keeping and accounting standards apply to domestic operations as well as to foreign operations. There is no criminal liability for technical or insignificant accounting errors. In 1988, the FCPA was amended to make it clear that criminal liability will be imposed, however, where an individual knowingly circumvents or knowingly fails to implement a system of internal accounting controls or knowingly falsifies any book, record or account. I
