This Act prohibits all companies from paying bribes to foreign officials, political party, or political candidate in order to influence that person in his official capacity. Influence meant having the person fail to perform his official duties or having the person use his influence with others in order for the company to obtain or retain business in the foreign country.
It also required issuers of securities to make and keep books, records and accounts in reasonable detail, that accurately and fairly reflect the transactions and dispositions of assets. This included devising and maintaining a system of internal accounting controls sufficient to provide reasonable assurances that:
- Transactions are executed in accordance with management’s general or specific authorization.
- Transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP.
- Transactions are recorded to maintain accountability for assets.
- Access to assets is permitted only in accordance with management’s authorization.
- Asset records are verified with physical assets periodically and appropriate action taken with respect to any differences.