CFCI FINAL EXAM PREP
2025/2026 QUESTIONS AND VERIFIED
CORRECT SOLUTIONS || 100%
GUARANTEED PASS
<BRAND NEW VERSION>
1. Fraud - ANSWER ✓ "Any illegal acts characterized by deceit, concealment,
or violation of trust. These acts are not dependent upon the perpetrated by
individuals and organizations to obtain money, property, or services; to
avoid payment or loss of services; or to secure personal or business ad-
vantage."
2. Specification schemes. - ANSWER ✓ Vendors pay corrupt bank employees
to write contract specifications that favor their particular goods or services.
(Pre-solicitation phase)
3. Bid splitting. - ANSWER ✓ when competitive bidding is required only for
contracts or purchases over a minimum amount., a corrupt procurement
employee may accept a bribe from a vendor to split the contracts so that
each of the two amounts falls below the competitive bidding threshold. (Pre-
solicitation phase)
4. Creating phony suppliers. - ANSWER ✓ a dishonest procurement employee
may be paid off to permit a collusive vendor to create nonexistent
"competitors" and submit phony bids in their names, with pricing that
ensures that the actual vendor wins the business. (Solicitation phase).
5. Pay-per-view schemes. - ANSWER ✓ A dishonest purchasing employee
may accept a corrupt vendor's offer for payment in exchange for advance
, access to the contract specifications. The crooked vendor obtains a
competitive (and illegal) advantage over rival bidders and essentially is
guaranteed to win the business.(Solicitation phase).
6. Early-start schemes. - ANSWER ✓ A dishonest buyer accepts something of
value from a crooked vendor in exchange for receiving advance access to the
contract specifications. The preferred vendor gains extra time to prepare its
bid, thereby putting the competition at a disadvantage. (Solicitation phase)
7. Submission Phase - ANSWER ✓ providing a preferred (i.e.,bribe-paying)
vendor with the details of already-submitted bids, in order to give the corrupt
vendor a leg up in tailoring a bid in a way that ensures he or she will win the
business.
8. Bid pooling. - ANSWER ✓ A process by which several bidders conspire to
split contracts, thereby ensuring that each gets a certain amount of work,
which does not require collusion with an insider (Submission phase).
9. Travel and Entertainment fraud (T&E) - ANSWER ✓ Employees using
traveling and entertainment expenses as a way to defraud the company.
10.Hidden check fraud - ANSWER ✓ A dishonest employee puts an
unauthorized check in a pile of authorized checks, betting on the odds that
the signer will not check each check and just sign the unauthorized one.
11.Check fraud intimiation - ANSWER ✓ A bank employee using fear or
intimidation on a person responsible for issuing the checks (such as AP) to
write a check without proper invoices, documentation or signatures etc.
12.ACH fraud - ANSWER ✓ A perpetrator provides the routing number and
the account number of the victim's account to the receiving company (utility,
car loans, etc) to make the required payments.
13.Types of Payroll Fraud - ANSWER ✓ -creation of ghost-employees (most
common)
-altering hourly rate of pay or commission details
-altering employee status so the company does not have to pay taxes and/or
benefits.
, -time card alterations, claiming time not really worked, forged supervisor
signatures
14.Theft of confidential information - ANSWER ✓ perpetrators (possible
employees) steal PII of customers and use the information to commit
identity frauds such as unauthorized loans, credit accounts (pg 71)
15.Insider abuse of Computer Systems - ANSWER ✓ insiders pose a
substantial threat by virtue of their knowledge of and access to their
employers' systems and/or databases, and their ability
to bypass existing physical and electronic security measures through
legitimate means.
16.Management-Level self dealing - ANSWER ✓ Self dealing is approving
loans to ones self (pg 87)
17.Foreign Corrupt Practices Act (FCPA) - ANSWER ✓ a law that prohibits
U.S. corporations from making illegal payments to public officials of foreign
governments to obtain business rights or to enhance their business dealings
in those countries
18.Recording false revenues - ANSWER ✓ misrepresenting financial
performance involves recording nonexistent revenue or misrepresenting the
period in which the revenue was received.
19.Fraudulent revenue recognition - ANSWER ✓ involves recording revenue—
typically loan interest income and interest from investments and related
revenue—from a future reporting period in the current period, or
understating amounts set aside for loan losses.
20.Manipulating liabilities - ANSWER ✓ Neglecting to record expenses and
burying vendor invoices, management can make it appear as if expenses for
a particular reporting period are lower than they actually are, thereby making
earnings appear greater than they are.
21.Overstating Assets - ANSWER ✓ failure to mark investments to market
when the securities markets decline, overstating the amount of cash, or
, recording the value of an outstanding loan as being greater than its estimated
market value.
22.Manipulating interest rates - ANSWER ✓ Libor (London Inter-Bank
Offered Rate) is an average interest rate calculated through submissions of
interest rates by major banks across the world. The scandal arose when it
was discovered that banks were falsely inflating or deflating their rates so as
to profit from trades, or to give the impression that they were more
creditworthy than they were
23.Tool Theft - ANSWER ✓ Fraudster who removes tools from a job site and
then sells them and keeps the proceeds but reports the tools as lost .
24.Materials Waste - ANSWER ✓ Fraudster orders more material than
necessary on an existing purchase order and reports the excess s waste or
scrap.
25.Product Substitution - ANSWER ✓ One grade of material is specified,
submitted, approved, an billed but a lower grade is delivered.
26.Duplicate payments - ANSWER ✓ Duplicate payments are issued for
legitimate vendors for legitimate invoices. One check goes to the vendor and
one goes to the fraudster but shows the check as voided or canceled.
27.Employee ghosting - ANSWER ✓ Basically time card fraud, where
employees clock in for other employees or create a fictitious employee and
collect their pay.
28.Vehicle maintenance scheme - ANSWER ✓ fraudster agrees to send
construction company-owned or leased vehicles to a service provider for
what is described as regular maintenance. However, either the pricing for the
actual services rendered is greater than the market price, or the services
documented are not actually rendered. In either case, the service provider
gives a kickback to the company employee.
29.Bid-Rigging Schemes or collusion - ANSWER ✓ collusive fraud wherein an
employee helps a vendor illegally obtain a contract that was supposed to
involve competitive bidding, by the employee getting a kickback.
2025/2026 QUESTIONS AND VERIFIED
CORRECT SOLUTIONS || 100%
GUARANTEED PASS
<BRAND NEW VERSION>
1. Fraud - ANSWER ✓ "Any illegal acts characterized by deceit, concealment,
or violation of trust. These acts are not dependent upon the perpetrated by
individuals and organizations to obtain money, property, or services; to
avoid payment or loss of services; or to secure personal or business ad-
vantage."
2. Specification schemes. - ANSWER ✓ Vendors pay corrupt bank employees
to write contract specifications that favor their particular goods or services.
(Pre-solicitation phase)
3. Bid splitting. - ANSWER ✓ when competitive bidding is required only for
contracts or purchases over a minimum amount., a corrupt procurement
employee may accept a bribe from a vendor to split the contracts so that
each of the two amounts falls below the competitive bidding threshold. (Pre-
solicitation phase)
4. Creating phony suppliers. - ANSWER ✓ a dishonest procurement employee
may be paid off to permit a collusive vendor to create nonexistent
"competitors" and submit phony bids in their names, with pricing that
ensures that the actual vendor wins the business. (Solicitation phase).
5. Pay-per-view schemes. - ANSWER ✓ A dishonest purchasing employee
may accept a corrupt vendor's offer for payment in exchange for advance
, access to the contract specifications. The crooked vendor obtains a
competitive (and illegal) advantage over rival bidders and essentially is
guaranteed to win the business.(Solicitation phase).
6. Early-start schemes. - ANSWER ✓ A dishonest buyer accepts something of
value from a crooked vendor in exchange for receiving advance access to the
contract specifications. The preferred vendor gains extra time to prepare its
bid, thereby putting the competition at a disadvantage. (Solicitation phase)
7. Submission Phase - ANSWER ✓ providing a preferred (i.e.,bribe-paying)
vendor with the details of already-submitted bids, in order to give the corrupt
vendor a leg up in tailoring a bid in a way that ensures he or she will win the
business.
8. Bid pooling. - ANSWER ✓ A process by which several bidders conspire to
split contracts, thereby ensuring that each gets a certain amount of work,
which does not require collusion with an insider (Submission phase).
9. Travel and Entertainment fraud (T&E) - ANSWER ✓ Employees using
traveling and entertainment expenses as a way to defraud the company.
10.Hidden check fraud - ANSWER ✓ A dishonest employee puts an
unauthorized check in a pile of authorized checks, betting on the odds that
the signer will not check each check and just sign the unauthorized one.
11.Check fraud intimiation - ANSWER ✓ A bank employee using fear or
intimidation on a person responsible for issuing the checks (such as AP) to
write a check without proper invoices, documentation or signatures etc.
12.ACH fraud - ANSWER ✓ A perpetrator provides the routing number and
the account number of the victim's account to the receiving company (utility,
car loans, etc) to make the required payments.
13.Types of Payroll Fraud - ANSWER ✓ -creation of ghost-employees (most
common)
-altering hourly rate of pay or commission details
-altering employee status so the company does not have to pay taxes and/or
benefits.
, -time card alterations, claiming time not really worked, forged supervisor
signatures
14.Theft of confidential information - ANSWER ✓ perpetrators (possible
employees) steal PII of customers and use the information to commit
identity frauds such as unauthorized loans, credit accounts (pg 71)
15.Insider abuse of Computer Systems - ANSWER ✓ insiders pose a
substantial threat by virtue of their knowledge of and access to their
employers' systems and/or databases, and their ability
to bypass existing physical and electronic security measures through
legitimate means.
16.Management-Level self dealing - ANSWER ✓ Self dealing is approving
loans to ones self (pg 87)
17.Foreign Corrupt Practices Act (FCPA) - ANSWER ✓ a law that prohibits
U.S. corporations from making illegal payments to public officials of foreign
governments to obtain business rights or to enhance their business dealings
in those countries
18.Recording false revenues - ANSWER ✓ misrepresenting financial
performance involves recording nonexistent revenue or misrepresenting the
period in which the revenue was received.
19.Fraudulent revenue recognition - ANSWER ✓ involves recording revenue—
typically loan interest income and interest from investments and related
revenue—from a future reporting period in the current period, or
understating amounts set aside for loan losses.
20.Manipulating liabilities - ANSWER ✓ Neglecting to record expenses and
burying vendor invoices, management can make it appear as if expenses for
a particular reporting period are lower than they actually are, thereby making
earnings appear greater than they are.
21.Overstating Assets - ANSWER ✓ failure to mark investments to market
when the securities markets decline, overstating the amount of cash, or
, recording the value of an outstanding loan as being greater than its estimated
market value.
22.Manipulating interest rates - ANSWER ✓ Libor (London Inter-Bank
Offered Rate) is an average interest rate calculated through submissions of
interest rates by major banks across the world. The scandal arose when it
was discovered that banks were falsely inflating or deflating their rates so as
to profit from trades, or to give the impression that they were more
creditworthy than they were
23.Tool Theft - ANSWER ✓ Fraudster who removes tools from a job site and
then sells them and keeps the proceeds but reports the tools as lost .
24.Materials Waste - ANSWER ✓ Fraudster orders more material than
necessary on an existing purchase order and reports the excess s waste or
scrap.
25.Product Substitution - ANSWER ✓ One grade of material is specified,
submitted, approved, an billed but a lower grade is delivered.
26.Duplicate payments - ANSWER ✓ Duplicate payments are issued for
legitimate vendors for legitimate invoices. One check goes to the vendor and
one goes to the fraudster but shows the check as voided or canceled.
27.Employee ghosting - ANSWER ✓ Basically time card fraud, where
employees clock in for other employees or create a fictitious employee and
collect their pay.
28.Vehicle maintenance scheme - ANSWER ✓ fraudster agrees to send
construction company-owned or leased vehicles to a service provider for
what is described as regular maintenance. However, either the pricing for the
actual services rendered is greater than the market price, or the services
documented are not actually rendered. In either case, the service provider
gives a kickback to the company employee.
29.Bid-Rigging Schemes or collusion - ANSWER ✓ collusive fraud wherein an
employee helps a vendor illegally obtain a contract that was supposed to
involve competitive bidding, by the employee getting a kickback.
