Which is NOT an example of a corruption scheme?

Prepare for the ACFE Certified Fraud Examiner (CFE) Financial Transactions and Fraud Schemes Test with our comprehensive quiz. Engage with flashcards, multiple choice questions, hints, and explanations. Ace your exam!

The choice that is not an example of a corruption scheme is related to the approval of a fake invoice for payment. Corruption schemes typically involve an abuse of power where someone with authority accepts something of value in exchange for a benefit or to influence decision-making.

In the scenario with the law firm’s bookkeeper approving a fake invoice, this action represents fraud rather than corruption. Fraud refers to deceptive practices intended to secure an unfair or unlawful gain, which in this case involves the bookkeeper falsifying documents for personal financial gain rather than exchanging favors or influence in the context of authority or public trust.

In contrast, the other scenarios illustrate corruption. For instance, the bank manager agreeing to approve a loan in exchange for home improvement work demonstrates leveraging authority for personal gain. Similarly, the vendor giving tickets to a government agent indicates offering something of value to influence or reward the contract award process. The procurement manager's demand for using a specific company in exchange for contract awards also reflects corruption, as it involves using one’s position to coerce actions in favor of a personal agenda.

Understanding the differences between corruption and fraud is crucial for identifying various forms of unethical conduct in financial transactions.

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