ACFE Corruption and Bribery Schemes 1

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

A kickback is a secret payment made by a vendor to an employee in exchange for steering business or favorable contract terms to that vendor.

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

The FCPA contains a narrow exception for facilitating payments made to expedite or secure the performance of routine, non-discretionary governmental actions.

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

A conflict of interest occurs when an employee has an undisclosed personal or financial interest in a transaction that could benefit them at the employer's expense.

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

Consistently winning bids by a very slim margin above competitors suggests the winning vendor may have advance knowledge of competitor pricing.

Question 5

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

Accepted Answer

Corruption

Answer

The ACFE Fraud Tree organizes occupational fraud into three major branches: Asset Misappropriation, Corruption, and Financial Statement Fraud.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Corruption and Bribery Schemes 1