In the AICPA | FVS Podcast, the presenters provide an overview of the Foreign Corrupt Practices Act (FCPA) and the potential effects that the COVID-19 pandemic could have on FCPA enforcement trends. The presenters discuss examples of FCPA risks that companies should be aware of in this environment and the corresponding actionable steps and mitigation measures organizations can take to address such challenges. These include:
- Reduced budgets resulting in layoffs of corporate compliance and audit professionals. Unfortunately, many companies don’t view their compliance personnel as essential and they tend to be among the first to be laid off.
- Potential travel restriction and distributed workforce leading to compliance gaps. Companies may rely too heavily on online or generalized compliance trainings rather than in person customized programs.
- Challenges in management oversight presented by distributed operations and workforce. This can raise security issues around access to company data and assets.
- Supply chain issues present a serious risk area for companies to secure key resources. Chip shortages impacting car companies, healthcare companies having difficulty securing PPE and other examples of companies having difficulty securing key resources represent an existential threat that puts additional pressure on companies. This may result in violating compliance rules if the compliance and internal controls are not designed correctly.
- The pandemic created new avenues for bribery schemes, such as obtaining PPP loans, work permission, health checks or waivers for a company work force.
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Presenters: Victor Padilla, MBA, CFE, Managing Director, Forensics and Litigation Services at Weaver and Christopher Meadors, CPA, CFF, JD, Director at Delta Consulting Group
Moderator: Sasha Gartman, CFE, CAMS CFE, Manager, Forensics and Litigation Services at Weaver