Procurement Fraud Schemes
Fraud Statistics
Fraud Prevention
Fraud Facts
Fraud, Red Flags
100
Refers to some "thing of value" going back to the vendor, Using Agency or a Procurement Official
What are: Kickbacks
100
A typical organization loses this precentage of revenue to fraud on an annual basis.
What is: 5%
100
What must exist in the authorization of purchasing expenditures, custody of assets and reporting of transactions?
What are: A Clear Segregation of Duties
100
The acronym for the Association of Certified Fraud Examiner's?
What is: The ACFE
100
An employee's refusal to take one of these is considered a behavioral red flag...
What are: Vacations
200
Describes when an insider manipulates the bidding process in a number of ways to benefit a favored contractor or supplier... this can include accepting late bids, changing bids, re-bidding work, etc.
What is: Bid Manipulation
200
In regards to criminal records, most occupational fraudsters are...
First time offenders with a clean employment history
200
The most effective fraud reporting mechanisim?
What are: Anonymous Tip Lines
200
Described by the "use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets"?
What is: Fraud
200
An employee who has an unusually close relationship with their "X" is exhibiting red flag behavior.
What is: A Vendor or Customer
300
Describes when a procurement official splits a single purchase into two or more purchases for the sole purpose of each purchase being below upper level review or competitive bidding thresholds.
What is: Split Purchase
300
These types of fraud schemes pose the greatest risk to organizations throughout the world.
What is: Billing and Corruption Schemes
300
A critical component of a well rounded program for preventing and detecting fraud is?
What is: Fraud Awareness Training
300
The name of the three-sided diagram which represents these motivations: Opportunity - Rationalization - Pressure?
What is: The Fraud Triangle
300
An employee who has control issues and is unwilling to share their "X" with his/her co-workers.
What are: Job Duties
400
When a Procurement Official knowingly allows a contractor to submit a "low" bid without any margin of profit due to a mutual agreement to issue post-award change orders.
What is: Change Order Abuse
400
Identify the percentage of victimized organizations who do not recover any of their fraud losses.
What is: Nearly 50%
400
An example of a manual which defines what is expected of all employees, regardless of position and includes the following statement "all individuals shall protect the County's assets amd reputation through professional and personal conduct that is above reproach"?
What is: A Code of Conduct, such as the County's Ethics Handbook
400
One explanation for what makes "good people go bad"... is it either greed, or "X"?
What is: Need
400
The "Wages in Kind" theroy has to do with "balancing the scales". It concludes that the more "X" the employee feels with his/her workplace the more likely he/she is going to engage in criminal behavior.
What is: Dissatisfied
500
When an insider deliberately writes a non-supportable sole source justification to avoid a competitive selection process.
What is: An Unjustified Sole Source
500
The most common red flag behavioral indicator associated with fraudulent conduct is...
What is: Living beyond one's means
500
What should not be relied on as an organization's primary fraud detection method?
What are: External Audits
500
Workplace conditions are a major risk factor in predicting fraud... What type of employee might be tempted to commit fraud against their employer?
What is: A Disgruntled Employee
500
What is the process that management has authority over which could be used to commit fraud? It can be accomplished by "X" internal controls.
What is: Overriding
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