Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Questions and Answers
Question 69
Which of the following is NOT the reason to bribe employees of the purchaser?
Options:
A.
To ensure receipt of a late bid
B.
To extend the bid opening date
C.
To ensure bid-splitting
D.
To falsify the bid log
Answer:
C
Explanation:
Detailed Explanation:
Rationale for Correct Answer:Bribes to purchasing employees often aim to:
Ensure late bids are accepted,
Extend deadlines unfairly,
Or falsify bid logs.Bid-splitting, however, is a scheme performed to avoid approval thresholds and does not require bribery of purchasing employees.
Analysis of Incorrect Options:
A. Receipt of late bid – Real reason to bribe.
B. Extend opening date – Real reason to bribe.
D. Falsify bid log – Real reason to bribe.
C. Ensure bid-splitting – Not a bribery motivation.
Key Concept:Bribery motivations in procurement fraud.
[Reference:ACFE Fraud Examiners Manual (2020 International Edition), Corruption — Bribery Schemes in Procurement., , ]
Question 70
Which of the following scenarios is an example of an economic extortion scheme?
Options:
A.
A purchasing employee and vendor agree to bill the company for services that were not provided.
B.
A government official demands money in exchange for awarding a contract to a vendor.
C.
An employee receives a payment for directing excess business to a vendor.
D.
A vendor rewards a purchasing employee with a free trip after the employee directs business to the vendor.
Answer:
B
Explanation:
Detailed Explanation:
Rationale for Correct Answer:Economic extortion occurs when someone demands payment or benefit under threat of harm (explicit or implicit). A government official demanding money in exchange for awarding a contract is classic extortion.
Analysis of Incorrect Options:
A – This is a billing scheme (fraudulent disbursement), not extortion.
C – This is a kickback scheme (corruption).
D – This is an illegal gratuity scheme (reward after action).
Key Concept: Types of corruption—extortion vs. bribery vs. gratuities.
