ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam With Confidence Using Practice Dumps

Detailed Explanation:

Rationale for Correct Answer:In a legitimate competitive bidding process, all bidders must be treated equally, with the same access to information, terms, and conditions. This ensures fairness and prevents procurement fraud.

Analysis of Incorrect Options:

A. Bid-rigging – The manipulation of competitive bidding, not the fair process.

B. Kickbacks – Involve secret payments, not equal bidding.

D. Bid solicitation – The stage of inviting bids, not the equal treatment requirement.

Key Concept:Competitive bidding — foundation of fairness in procurement.

Detailed Explanation:

Rationale for Correct Answer: Administrative security controls involve policies, procedures, and practices designed to manage the overall security environment—such as awareness training, audits, data classification, and enforcement of policies. These controls focus on governance rather than direct system configuration.

Analysis of Incorrect Options:

A. Technical security controls – These are automated safeguards (e.g., firewalls, encryption).

B. Logical access controls – Restrict access to systems through passwords, tokens, or biometrics.

D. Physical access controls – Restrict physical access (e.g., locks, guards, CCTV).

Key Concept: Layers of security controls (administrative, technical, physical).

Detailed Explanation:

Rationale for Correct Answer:Skimming involves the theft of cash before it is recorded in the accounting system. Since sales are never recorded, reconciling sales to receipts will not detect skimming—it can only detect larceny (theft after recording).

Analysis of Incorrect Options:

A. True – Incorrect because no discrepancy exists in the records (the sale itself is omitted).

Key Concept: Distinction between skimming (off-book theft) and cash larceny (on-book theft).