Which of the following is NOT a common red flag of procurement fraud schemes?

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 identifies a scenario not typically associated with red flags for procurement fraud schemes is the situation where more competitors than usual submit bids on a project or product. Generally, a higher number of bidders indicates a competitive environment, which can be beneficial for the procurement process. It usually signals a diverse supplier market and increased competition, leading to potentially better pricing and terms for the purchasing entity.

In contrast, the other options present concerns related to bidding behavior that may suggest collusion or irregularities. For instance, if the same contractors consistently bid on each project, it could indicate a lack of competition or collusion among those contractors. Similarly, consistently high bids across all contractors may point to price-fixing or collusion, while declining bid prices when a new competitor joins could suggest that existing bidders were inflating prices in the absence of competition. Each of these scenarios would raise red flags that necessitate further investigation into potential fraud activities.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy