Business Faculty Publications


The Importance Of The Foreign Corrupt Practices Act (FCPA) For Accounting Education

Document Type

Contribution to Books

Publication Date


Publication Title

Advances In Accounting Education: Teaching and Curriculum Innovations


Accounting/Taxation; Foreign Corrupt Practices Act; accounting education; ethics, bribery, corrupt practices, international business, internal control


Accounting | Business Law, Public Responsibility, and Ethics | International Business


Purpose Discuss the importance of the Foreign Corrupt Practices Act (FCPA) to accounting education. Methodology/approach This study first examines the current trends and events underlying the reasons for increasing the incorporation of the FCPA and related anti-bribery issues into the accounting curriculum. Then best practices of increasing FCPA coverage and presenting the material to students are presented and explained. Findings The recent increase in FCPA and anti-bribery prosecutions, the penalties assessed, and the costs of internal investigation and compliance are significant. In addition, corruption is a way of life in many countries. Thus, the need for consultants, auditors, and accounting firms knowledgeable about FCPA issues is growing, especially as the FCPA has a books and records provision and demands effective internal control. However, universities have been slow to acknowledge this trend. Pedagogical strategies for including FCPA issues in the accounting curriculum range from incorporating role-playing and developing case studies in existing classes to creating separate stand-alone FCPA and anti-bribery classes. Social implications Accounting students, during their future business careers, will be better prepared to identify, evaluate, and choose appropriate actions/responses when faced with FCPA and bribery situations. Originality/value Despite the underlying trends that indicate the importance of integrating FCPA issues into the accounting education, many universities have lagged in introducing this subject area into their curriculum. This study is the first to provide the rationale and multiple pedagogical methods for facilitating accounting student education about identifying FCPA issues and selecting proper responses.