CFE Bribery and Corruption 4

Question 1

A city council member votes to award a construction contract to a firm after receiving concealed campaign contributions from the firm's owner. This BEST describes which corruption scheme?

Accepted Answer

Political corruption through improper campaign contributions

Answer

Using concealed campaign contributions to influence an official vote on a government contract constitutes political corruption, a form of public sector bribery.

Question 2

Which of the following is the MOST effective internal control to prevent bribery in a company's procurement function?

Accepted Answer

Mandatory rotation of procurement personnel and segregation of contract approval duties

Answer

Personnel rotation disrupts established corrupt relationships while segregation of duties prevents any single employee from both selecting vendors and approving payments.

Question 3

Under the FCPA's internal controls provision, which type of company is subject to the requirement?

Accepted Answer

Issuers whose securities are registered with the SEC or required to file reports with the SEC

Answer

The FCPA's internal controls provisions apply to 'issuers,' meaning companies whose securities are registered under or required to file reports with the SEC.

Question 4

An employee is told by a foreign customs official that goods will be held indefinitely unless a payment is made to release them. This BEST illustrates:

Accepted Answer

Economic extortion

Answer

When a public official demands payment under threat of harm or withholding a service, it constitutes economic extortion rather than voluntary bribery.

Question 5

A fraud examiner reviewing contracts notices a vendor consistently wins bids by exactly 1% below the next lowest competitor. This pattern MOST suggests:

Accepted Answer

The winning vendor has access to competitors' confidential bid information through a corrupt insider

Answer

Consistently winning by a narrow margin that closely tracks competitors' bids strongly suggests bid leakage—an insider is sharing competitor pricing with the winning vendor.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Bribery and Corruption 4