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

Bribery involves offering, giving, receiving, or soliciting anything of value to influence an official act. In this case, the lavish trip was likely provided with the intent to influence the awarding of the contract, which constitutes a quid pro quo arrangement.

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

The primary difference between bribery and an illegal gratuity is the element of intent and timing. Bribery requires proof that the payment was offered with the intent to influence a future official act (a quid pro quo). An illegal gratuity is a reward given *after* an official has already taken an action, without proof of a pre-existing agreement to be influenced.

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

While all options can be red flags, a dramatic increase in payments to a vendor without a justifiable business reason (like more services or goods) is a very strong indicator that the excess money is being funneled for an illicit purpose, such as a kickback or bribe payment.

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

Commercial bribery involves the corruption of a private individual to gain a commercial or business advantage. In this scenario, an employee of a private company accepted something of value that influenced their decision in a business transaction, which is the definition of commercial bribery.

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

The ACFE's 2024 Report to the Nations found that asset misappropriation was the most common type of occupational fraud, occurring in 89% of cases. Corruption was the second most common at 48%, and financial statement fraud was the least common at 5%.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Bribery and Corruption Questions and Answers