Bribery and Corruption Flashcards
7 cards from real CFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bribery and Corruption flashcards as text
Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered a 'foreign official'?
Answer: An employee of a state-owned enterprise
The FCPA defines 'foreign official' to include employees of government-owned or government-controlled entities, such as state-owned enterprises.
What is the primary distinction between a bribe and a facilitating payment under the FCPA?
Answer: Facilitating payments are made to expedite routine non-discretionary government actions
Facilitating payments, also called grease payments, are made to expedite or secure the performance of routine, non-discretionary governmental actions and are a narrow exception under the FCPA.
A fraud examiner discovers that a contractor paid a city inspector's personal credit card bill in exchange for approving a substandard building. This BEST illustrates which type of corruption scheme?
Answer: Bribery
Bribery involves offering, giving, receiving, or soliciting something of value to influence an official act, which matches paying the inspector's bill for approval.
Which of the following is a common red flag indicating a vendor may be paying bribes to obtain contracts?
Answer: The vendor requests payment through a third-party intermediary in a high-risk jurisdiction
Requests to route payments through third-party intermediaries, especially in high-risk jurisdictions, are classic red flags for bribery and corruption schemes.
The UK Bribery Act 2010 differs from the FCPA primarily in that it:
Answer: Criminalizes commercial bribery between private parties without any government nexus
The UK Bribery Act covers both public and private sector bribery, making it broader than the FCPA which focuses primarily on bribing foreign government officials.
In a bid-rigging scheme, which party is MOST likely to be the bribe payer?
Answer: The winning bidder who coordinated with competitors
In bid rigging, the winning bidder typically pays bribes to the procurement official and may compensate losing bidders to submit sham bids, making them the primary bribe payer.
Which of the following BEST describes the 'books and records' provision of the FCPA?
Answer: It requires issuers to maintain accurate records that fairly reflect company transactions
The FCPA's books and records provision requires covered issuers to maintain books and records that accurately and fairly reflect transactions and dispositions of assets.