ACFE Procurement Fraud and Vendor Schemes 2

Question 1

Which form of bid rigging involves competitors agreeing in advance on who will win a particular contract?

Accepted Answer

Bid rotation

Answer

Bid suppression

Answer

Complementary bidding

Answer

Subcontracting schemes

Question 2

What is 'complementary bidding' in a bid rigging conspiracy?

Accepted Answer

Submitting intentionally losing bids to make a predetermined winner appear competitive

Answer

Bidding on complementary product categories

Answer

Offering price matching as a competitive strategy

Answer

Submitting bids that complement each other's scope

Question 3

Under the Sherman Antitrust Act, bid rigging is classified as which type of violation?

Accepted Answer

A per se illegal violation

Answer

A civil infraction requiring restitution only

Answer

A rule-of-reason violation

Answer

An administrative violation

Question 4

Which purchasing scheme involves an employee authorizing payment for goods received at inflated prices due to a secret arrangement with the vendor?

Accepted Answer

Overbilling scheme

Answer

Lapping scheme

Answer

Skimming scheme

Answer

Larceny scheme

Question 5

Which control is most effective at preventing employees from creating fictitious vendors?

Accepted Answer

Requiring dual authorization for vendor master file changes

Answer

Monthly vendor reconciliations

Answer

Annual vendor audits

Answer

Segregating invoice processing from payment

Question 6

What is a 'subcontractor kickback' scheme in construction procurement fraud?

Accepted Answer

A general contractor receiving secret payments from subcontractors in exchange for favorable subcontract awards

Answer

A subcontractor overcharging the prime contractor

Answer

A subcontractor paying workers off the books

Answer

A contractor billing for unauthorized subcontract work

Question 7

Which data analysis method is best suited to identifying employees who are also listed as vendors in the accounts payable system?

Accepted Answer

Cross-matching employee and vendor master files

Answer

Trend analysis

Answer

Benford's Law

Answer

Regression analysis