ACFE Corruption and Bribery Schemes 3

Question 1

Which of the following is the most common organizational control for preventing conflicts of interest?

Accepted Answer

Annual conflict of interest disclosure policy and certification

Answer

Requiring employees to annually disclose and certify any conflicts of interest is the most direct control for identifying undisclosed relationships.

Question 2

A certified fraud examiner discovers that a purchasing manager awarded a contract to a company owned by their spouse. This is best classified as:

Accepted Answer

A conflict of interest

Answer

Awarding a contract to a relative's company without disclosure is a textbook conflict of interest, a subcategory of corruption fraud.

Question 3

Which of the following would be a red flag suggesting an employee is receiving bribes from a vendor?

Accepted Answer

The employee's lifestyle noticeably exceeds their known salary

Answer

Living beyond one's apparent means is a classic behavioral red flag indicating an employee may be receiving undisclosed income from a fraudulent source.

Question 4

The FCPA applies to which of the following entities?

Accepted Answer

US issuers, domestic concerns, and certain foreign persons acting within the US

Answer

The FCPA applies broadly to US issuers (public companies), US domestic concerns (citizens, nationals, residents, and US businesses), and foreign persons who take acts in furtherance of an FCPA violation while in the US.

Question 5

Which data analytics test is most useful for identifying fictitious vendors used in a corruption scheme?

Accepted Answer

Searching for vendors with PO boxes or incomplete addresses lacking phone numbers

Answer

Fictitious vendors often lack complete contact information, using PO boxes or missing phone numbers because they do not conduct legitimate business.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Corruption and Bribery Schemes 3