Practice Test Geeks(FAC) Federal Acquisition Certification Practice Test
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Fraud Detection & Prevention Flashcards

7 cards from real FAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Fraud Detection & Prevention flashcards as text

  1. Which federal statute is the primary law used to prosecute contractors who submit false claims to the U.S. government?

    Answer: False Claims Act

    The False Claims Act (31 U.S.C. § 3729) imposes liability on individuals and companies who defraud the federal government by submitting false claims for payment.

  2. A contractor bills the government for 1,000 units of a product but only delivered 800. This is best described as:

    Answer: Overbilling fraud

    Overbilling fraud occurs when a contractor charges for goods or services not actually delivered or performed.

  3. Under the Procurement Integrity Act, for how long after a procurement are former officials prohibited from receiving compensation from the winning contractor?

    Answer: 1 year

    The Procurement Integrity Act prohibits former officials from accepting compensation from award recipients for one year after the procurement.

  4. Which of the following best describes 'labor mischarging' in a government contract?

    Answer: Charging labor costs from one contract to another contract

    Labor mischarging involves allocating labor hours or costs to a government contract that were actually worked on a different contract or project.

  5. An agency's Inspector General (IG) is primarily responsible for:

    Answer: Investigating fraud, waste, and abuse within the agency

    Inspectors General are independent watchdogs who conduct audits and investigations to detect and prevent fraud, waste, and abuse within federal agencies.

  6. What is 'bid suppression' in the context of procurement fraud?

    Answer: Colluding to prevent competitors from submitting bids

    Bid suppression is a form of bid rigging where one or more competitors agree to refrain from bidding so a designated firm can win.

  7. A contracting officer suspects a contractor is using a shell company to inflate subcontract costs. Which action is most appropriate first?

    Answer: Request an audit from DCAA

    The Defense Contract Audit Agency (DCAA) or cognizant audit agency can review contractor financial records to identify shell company schemes and cost inflation.