Fraud Management & Detection

Using Analytics to Protect Yourself

Data Analytics for FCPA Compliance

The Foreign Corrupt Practices Act (FCPA) should not be taken lightly. But compliance can be tricky. The global business environment includes many international, decentralized companies. Individuals often operate in countries where bribes and payoffs have historically been a routine part of doing business. When languages and business cultures vary to a large degree, it can be extremely difficult to keep tabs on the operations.
A key tool for avoiding FCPA difficulties is Data Analysis. The truth is in the data, because that is where a company’s conduct is recorded. The rows and columns of data often speak volumes about what is truly going on inside the business.

Using Analytics to Protect Yourself

Departments such as internal audit and compliance can play a critical role in FCPA compliance by implementing effective monitoring techniques. This shines a light on potential violations and helps develop a culture in which employees know their activities will be reviewed for possible ethical breaches.
One way to monitor for FCPA violations is through use of data analytics, which allow for complete, comprehensive testing of all corporate transactions. Companies can meet FCPA accounting provisions by employing assureBI to repeatedly test the effectiveness of internal controls and highlight specific transactions that appear suspicious.
When it comes to bribery provisions, data analysis solutions can quickly and easily identify red flags and provide an invaluable early warning system. Software programs can uncover :
Payments to risky vendors, including government contractors and parties on government watch lists
Payments made from foreign bank accounts
Use of new attorneys, accountants, consultants or other professions with no prior relationship to the company
Missing descriptions or suspicious payment keywords, such as “for services rendered,” “gifts,” or “facilitation”
Checks made out to “cash”
Payments classified as government expenses, made in cash, or written to an individual