ACFE Corruption and Bribery Schemes 2 — Questions and Answers
Question 1: Which element is NOT required to prove commercial bribery under most US state laws?
- The bribed party must be a government official (Correct answer)
- A thing of value was offered or given
- The recipient was an agent or employee of another
- The intent was to influence the agent's actions on behalf of their principal
Correct answer: The bribed party must be a government official
Commercial bribery applies to private-sector employees and agents; the involvement of a government official is not required (that falls under public bribery statutes).
Question 2: When investigating a potential bribery scheme, which document type is most valuable for identifying undisclosed relationships between an employee and a vendor?
- Conflict of interest disclosure forms (Correct answer)
- Bank reconciliation statements
- Petty cash logs
- Fixed asset registers
Correct answer: Conflict of interest disclosure forms
Conflict of interest disclosure forms require employees to declare personal relationships or financial interests in vendors, making them a primary document in bribery investigations.
Question 3: A 'shell company' scheme most directly supports which type of corruption fraud?
- Billing for services not rendered through a fictitious entity (Correct answer)
- Skimming receipts at the point of sale
- Falsifying travel expense reimbursements
- Altering physical inventory counts
Correct answer: Billing for services not rendered through a fictitious entity
Shell companies are commonly used to fraudulently bill an employer for goods or services never received, routing payments to an account controlled by the fraudster.
Question 4: Under the UK Bribery Act 2010, which offense is unique compared to the FCPA?
- Failure of a commercial organization to prevent bribery (Correct answer)
- Offering a bribe to a foreign official
- Receiving a bribe as a public official
- Paying a bribe to a domestic government official
Correct answer: Failure of a commercial organization to prevent bribery
Section 7 of the UK Bribery Act creates a strict liability corporate offense for failing to prevent bribery, which has no direct equivalent in the FCPA.
Question 5: Which analytical technique is most effective for detecting corruption in vendor master files?
- Comparing vendor addresses to employee home addresses (Correct answer)
- Reviewing general ledger trial balances
- Analyzing accounts receivable aging reports
- Testing bank deposit cutoff procedures
Correct answer: Comparing vendor addresses to employee home addresses
Matching vendor addresses against employee home addresses can reveal shell companies or conflict-of-interest arrangements set up by employees.
Question 6: In a 'pay-and-return' bribery scheme, which party typically initiates the corrupt payment?
- The vendor initiates by offering payment to the employee (Correct answer)
- The employee demands payment as a condition of doing business
- Senior management authorizes the payment to maintain vendor relations
- The auditor discovers and reports the arrangement
Correct answer: The vendor initiates by offering payment to the employee
In a pay-and-return (bribery) scheme, the vendor proactively offers a kickback or bribe to the employee to gain a business advantage, distinguishing it from extortion where the employee demands payment.
ACFE Corruption and Bribery Schemes 2
Which element is NOT required to prove commercial bribery under most US state laws?