Financial CFEX Exam
Certified Fraud Examiner (CFEX) (Page 5 )

Updated On: 19-Jan-2026

When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

  1. Presolicitation scheme
  2. Need recognition scheme
  3. False sole-source scheme
  4. Submission scheme

Answer(s): B



In __________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

  1. Deliberate writing of vague specifications
  2. Need recognition
  3. False specification
  4. Bid-splitting

Answer(s): A



Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

  1. Bid-rigging
  2. Kickbacks
  3. Presolicitaion
  4. None of the above

Answer(s): B



In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

  1. Need recognition
  2. Solicitation
  3. False specification
  4. Submission

Answer(s): B



Which of the following is NOT the aspect of inventory purchase?

  1. Inventory purchases purposely increase in year 1 only to be liquidated in year 2.
  2. inventory for the year 2 will be much greater than year 1.
  3. Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.
  4. might be some fraud scheme in inventory.

Answer(s): B



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