Independent auditors’ responsibilities for violations of anti-bribery provisions under the U.S. Foreign Corrupt Practices Act: Auditing for bribes

摘要

Numerous disclosures about payments of bribes to foreign government officials continue to undermine the public’s trust in corporate governance. Therefore, enforcement of the U.S. Foreign Corrupt Practices Act, which prohibits bribing foreign government officials, has become a priority for the U.S. Securities and Exchange Commission and the U.S. Department of Justice. Auditors cannot simply ignore bribery risks when auditing financial statements. Bribery is an illegal act that triggers numerous responsibilities for auditors, including potential civil and criminal liability. To assist auditors’ with meeting their professional obligations, this study discusses methods to audit for bribes, emphasizing forensic accounting procedures specifically designed to detect illegal payments. Finally, this study calls upon the Public Company Accounting Oversight Board to issue additional guidance in two areas: first, addressing auditors’ responsibility with respect to fraud, bribery, and other illegal acts and second, clarifying the role of forensic accountants and the use of forensic accounting procedures in audits of financial statements.