CIG CIG Fraud Detection & Prevention 2

Question 1

Which data analytics technique is commonly used to detect anomalies in large financial datasets by examining the frequency distribution of leading digits?

Accepted Answer

Benford's Law analysis

Answer

Benford's Law predicts the expected frequency of leading digits in naturally occurring datasets, and deviations from this pattern can indicate manipulation or fraud.

Question 2

An Inspector General reviewing purchase card (P-card) transactions discovers multiple purchases just below the approval threshold. This pattern most likely indicates:

Accepted Answer

Splitting transactions to avoid oversight

Answer

Repeated purchases just below an approval threshold is a classic 'structuring' red flag, suggesting intentional splitting of transactions to circumvent required oversight.

Question 3

Which of the following best describes 'procurement fraud'?

Accepted Answer

Corruption or manipulation in the contracting and purchasing process

Answer

Procurement fraud involves corrupt or dishonest manipulation of the government contracting and purchasing process, including bid rigging, kickbacks, and collusion.

Question 4

A conflict of interest in contracting most commonly occurs when:

Accepted Answer

An agency employee has a financial interest in an awarded vendor

Answer

A conflict of interest arises when a government employee has a personal financial or personal relationship with a vendor that could impair impartial decision-making in the contracting process.

Question 5

What is the purpose of a 'continuous monitoring' program in fraud prevention?

Accepted Answer

To provide real-time or ongoing automated review of transactions for anomalies

Answer

Continuous monitoring uses automated tools to review transactions on an ongoing basis, enabling early detection of fraud, waste, and abuse rather than waiting for periodic audits.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG CIG Fraud Detection & Prevention 2