Final answer:
To discover if British Tobacco is paying bribes, an auditor examines financial records, scrutinizes transactions, assesses anti-bribery controls, and interviews personnel for compliance with laws like the FCPA.
Step-by-step explanation:
As an outside auditor for British Tobacco, uncovering whether the company has engaged in bribery involves a meticulous examination of financial records, interviews with personnel, and an understanding of the company's business practices. Scrutiny of unusual financial transactions, review of accounts payable and receivable, and comparison of contract amounts to market rates can reveal red flags that suggest improper payments.
It's crucial to evaluate internal controls, examine the company's adherence to anti-bribery policies, and assess compliance with relevant laws like the Foreign Corrupt Practices Act (FCPA) or the UK Bribery Act. Interviews with the management and employees, as well as collaboration with legal teams, may provide additional insights.