Document Type
Paper
Publication Date
1-1-2020
Journal / Book Title
Journal of Business Ethics Education
Abstract
The U.S. Foreign Corrupt Practices Act (FCPA) has gained significant popularity in recent years across borders due to the increased investigation and penalties under the law. The following case is a real-life case that highlights the main provisions of the FCPA. Using cases in teaching an auditing or ethics course is much needed to develop students’ professional judgment, critical and analytical thinking skills and communication skills. Presently, there are a few cases that address the Foreign Corrupt Practices Act and its effect on financial reporting and auditor responsibilities about illegal acts. The Armor Holdings case is interesting and information is publicly available regarding the circumstances that describe the bribery act, lack of whistle-blower protection, the tone at the top, and the accounting treatment. In addition, the increase in actions brought by the Securities and Exchange Commission (SEC) under the FCPA since 2010 heightens the relevance of this case and underscores the need for students to learn the skills necessary to ensure compliance with FCPA and related key regulations such as the Sarbanes Oxley and the Dodd Frank Act. Therefore, cases like this one provide a rich tool to navigate topics and enforce students’ learning of client’s illegal actions and their consequences. These skills are invaluable in practice.
DOI
10.4135/9781529790344
MSU Digital Commons Citation
Alali, Fatima and Romero, Silvia, "Armor holdings inc.: An application of the foreign corrupt practices act" (2020). Department of Accounting and Finance Faculty Scholarship and Creative Works. 154.
https://digitalcommons.montclair.edu/acctg-finance-facpubs/154
Published Citation
Alali, F., & Romero, S. (2020). Armor holdings inc. An application of the foreign corrupt practices act. Journal of Business Ethics Education, 17, 291-294.
Comments
This shortened version of the article is for promotional purposes on publicly accessible databases. Readers who wish to obtain the full text version of the article can order it via the publisher. Any enquiries, please contact the Publishing Editor, Peter Neilson pneilson@neilsonjournals.com © NeilsonJournals Publishing 2020.