Question 1

Bid-rigging scheme occurs when:

Options :

A : an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.

B : an employee does not assist a vendor in winning a contract through the competitive bidding process.

C : an employee once assists a vendor in winning a contract through a single competitive bidding process.

Answer: A

Question 2

The seller's price to the buyer is not fixed or determinable when:

Options :

A : When the price is not contingent on some future events

B : The transaction includes an option to exchange the product for others

C : A service or membership fee is not subject predictable cancellation during the contract period.

D : Payment terms are not extended for a substantial period.

Answer: B

Question 3

The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

Options :

A : Bogus claims

B : Billing scheme

C : Reliance billing

D : Misappropriate claims

Answer: A

Question 4

Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

Options :

A : Account analysis

B : Bank reconciliation

C : Check disbursement controls

D : Check tampering

Answer: C

Question 5

The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.

Options :

A : True

B : False

Answer: A

Free CFE-Financial-Transactions-and-Fraud-Schemes Mock Exam – Practice Online Confidently