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
Which of the following best describes a 'revolving door' conflict of interest in federal procurement?
Answer: Former government officials using insider knowledge to benefit their new private employer
The 'revolving door' refers to government officials who leave public service and leverage inside knowledge or relationships to benefit private sector employers, creating conflicts of interest.
When is a contracting officer required to refer a matter to the Department of Justice under the Program Fraud Civil Remedies Act?
Answer: When false claims are submitted but the amount is under $150,000 and DOJ declines prosecution
The Program Fraud Civil Remedies Act gives agencies authority to pursue civil penalties administratively for false claims under $150,000 when DOJ declines to prosecute.
A contracting officer discovers that a vendor provided a false certificate of independent price determination. The most serious consequence for the contractor could be:
Answer: Debarment and criminal prosecution
Falsely certifying independent price determination is a criminal offense that can result in contract termination, civil penalties, debarment, and criminal prosecution.
What is a 'qui tam' lawsuit under the False Claims Act?
Answer: A lawsuit filed by a private citizen on behalf of the government to expose fraud
A qui tam suit allows private individuals (relators) to file suit on behalf of the government and share in any financial recovery if fraud is proven.
Which of the following best illustrates 'unbalanced bidding' as a form of procurement fraud?
Answer: Front-loading prices on early contract line items expected to be heavily ordered
Unbalanced bidding involves setting artificially high prices on items expected to be ordered in large quantities while setting low prices on others, allowing manipulation of total contract value.
An agency employee leaks source selection information to a favored contractor before proposals are due. This violates:
Answer: The Procurement Integrity Act
The Procurement Integrity Act prohibits the disclosure of contractor bid or proposal information and source selection information before award.
Which type of internal audit technique is most effective at detecting duplicate invoice payments in government contracting?
Answer: Data analytics matching invoice numbers, amounts, and vendor IDs across payment records
Data analytics that cross-reference invoice numbers, dollar amounts, and vendor identifiers can systematically identify duplicate payments that manual review would likely miss.