Corruption and Bribery Schemes Flashcards
6 cards from real ACFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Corruption and Bribery Schemes flashcards as text
Which of the following is the most common organizational control for preventing conflicts of interest?
Answer: Annual conflict of interest disclosure policy and certification
Requiring employees to annually disclose and certify any conflicts of interest is the most direct control for identifying undisclosed relationships.
A certified fraud examiner discovers that a purchasing manager awarded a contract to a company owned by their spouse. This is best classified as:
Answer: A conflict of interest
Awarding a contract to a relative's company without disclosure is a textbook conflict of interest, a subcategory of corruption fraud.
Which of the following would be a red flag suggesting an employee is receiving bribes from a vendor?
Answer: The employee's lifestyle noticeably exceeds their known salary
Living beyond one's apparent means is a classic behavioral red flag indicating an employee may be receiving undisclosed income from a fraudulent source.
The FCPA applies to which of the following entities?
Answer: US issuers, domestic concerns, and certain foreign persons acting within the US
The FCPA applies broadly to US issuers (public companies), US domestic concerns (citizens, nationals, residents, and US businesses), and foreign persons who take acts in furtherance of an FCPA violation while in the US.
Which data analytics test is most useful for identifying fictitious vendors used in a corruption scheme?
Answer: Searching for vendors with PO boxes or incomplete addresses lacking phone numbers
Fictitious vendors often lack complete contact information, using PO boxes or missing phone numbers because they do not conduct legitimate business.
Which international anti-corruption framework requires companies to conduct due diligence on third-party agents to avoid liability for bribery committed on their behalf?
Answer: UK Bribery Act 2010
The UK Bribery Act's Section 7 corporate offense requires organizations to implement 'adequate procedures,' including third-party due diligence, to avoid liability for bribery by associated persons.