Certified Fraud Examiner Bribery and Corruption Questions and Answers

Question 1

A government official accepts a lavish trip from a construction company.
A month later, the official awards a non-competitive, high-value contract to that same company.
This scenario most likely represents which type of corruption scheme?

Accepted Answer

Bribery

Answer

Economic Extortion

Answer

Illegal Gratuity

Answer

Conflict of Interest

Question 2

Which of the following is a key distinction between bribery and an illegal gratuity?

Accepted Answer

An illegal gratuity is given after an official act is performed, without evidence of a prior agreement to influence the act.

Answer

Bribery involves public officials, whereas illegal gratuities involve private sector employees.

Answer

The value of the item offered is significantly higher in bribery cases.

Answer

Bribery is a criminal offense, while an illegal gratuity is only a civil violation.

Question 3

A Certified Fraud Examiner is reviewing a company's vendor files and discovers several red flags of a potential bribery scheme. Which of the following is the STRONGEST indicator of bribery?

Accepted Answer

Payments to a vendor have increased dramatically over the last year without a corresponding increase in goods or services.

Answer

A vendor's address is a post office box.

Answer

A key procurement manager has an unusually close, undisclosed relationship with a specific vendor.

Answer

The company has been using the same vendor for over ten years without a competitive bidding process.

Question 4

An employee of a large corporation is responsible for selecting a new software vendor. A salesperson from one of the bidding companies offers the employee's son a full scholarship to a prestigious university. In return, the employee ensures that the salesperson's company is awarded the multi-million dollar contract. This is an example of:

Accepted Answer

Commercial Bribery

Answer

Official Bribery

Answer

Economic Extortion

Answer

Illegal Gratuity

Question 5

According to the ACFE's 2024 'Occupational Fraud: A Report to the Nations,' which category of occupational fraud was the most common?

Accepted Answer

Asset Misappropriation

Answer

Financial Statement Fraud

Answer

Cybercrime

Answer

Corruption

Question 6

All of the following are common red flags associated with bribery and corruption EXCEPT:

Accepted Answer

Consistently rotating winning bidders on government contracts to ensure fairness.

Answer

An employee living a lifestyle that appears to exceed their known salary.

Answer

Unusually close associations between an employee and a vendor or customer.

Answer

The involvement of unnecessary middlemen or agents in a transaction.