CFE Bribery and Corruption 2

Question 1

Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered a 'foreign official'?

Accepted Answer

An employee of a state-owned enterprise

Answer

The FCPA defines 'foreign official' to include employees of government-owned or government-controlled entities, such as state-owned enterprises.

Question 2

What is the primary distinction between a bribe and a facilitating payment under the FCPA?

Accepted Answer

Facilitating payments are made to expedite routine non-discretionary government actions

Answer

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.

Question 3

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?

Accepted Answer

Bribery

Answer

Bribery involves offering, giving, receiving, or soliciting something of value to influence an official act, which matches paying the inspector's bill for approval.

Question 4

Which of the following is a common red flag indicating a vendor may be paying bribes to obtain contracts?

Accepted Answer

The vendor requests payment through a third-party intermediary in a high-risk jurisdiction

Answer

Requests to route payments through third-party intermediaries, especially in high-risk jurisdictions, are classic red flags for bribery and corruption schemes.

Question 5

The UK Bribery Act 2010 differs from the FCPA primarily in that it:

Accepted Answer

Criminalizes commercial bribery between private parties without any government nexus

Answer

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.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Bribery and Corruption 2