ACFE Corruption and Bribery Schemes

Question 1

Which of the following best describes a 'kickback' scheme in the context of occupational fraud?

Accepted Answer

A vendor secretly pays an employee for directing business to that vendor

Answer

An employee steals cash directly from the company register

Answer

A manager inflates their expense report for personal gain

Answer

An executive misrepresents revenue on financial statements

Question 2

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign official is generally permitted?

Accepted Answer

Facilitating payments to expedite routine governmental actions

Answer

Payments to win a new government contract

Answer

Payments to retain an existing government contract through improper means

Answer

Payments disguised as charitable donations to influence an official

Question 3

A conflict of interest fraud scheme most commonly involves an employee who:

Accepted Answer

Has an undisclosed personal stake in a transaction that affects their employer

Answer

Forges a supervisor's signature on a purchase order

Answer

Skims cash receipts before they are recorded

Answer

Creates fictitious vendors in the accounts payable system

Question 4

Which red flag is most indicative of a bid-rigging scheme in procurement?

Accepted Answer

A winning bidder repeatedly submits prices just below competitors' bids

Answer

An employee submits expense reports late

Answer

A vendor provides volume discounts

Answer

Contracts are approved by two separate managers

Question 5

The ACFE's Fraud Tree classifies corruption schemes under which major branch?

Accepted Answer

Corruption

Answer

Fraudulent Disbursements

Answer

Asset Misappropriation

Answer

Financial Statement Fraud

Question 6

Which of the following best describes 'economic extortion' as a form of corruption?

Accepted Answer

An employee demands payment from a vendor in exchange for awarding them a contract

Answer

An employee inflates vendor invoices and pockets the difference

Answer

A vendor bribes a purchasing agent to be placed on the approved vendor list

Answer

An employee creates a shell company to receive fraudulent payments