Chapter 13
Critical Thinking Q&A
A woman had two sons who were born on the same hour of the same day of the same year, but
they were not twins. How could this be so?
Answers: (1) Triplets or some higher number of siblings; (2) Adopted; (3) There is no mention
Review Questions & Answers
13-1. What are the different types of corruption schemes?
Answer: Corruption schemes in ACFE studies are broken down into four classifications:
13-2. How do bribery and illegal gratuities differ?
Answer: Bribery occurs before the decision is made to influence the outcome, and an
13-3. What is meant by a conflict of interest?
13-4. What is defined as “something of value?”
Answer: There are several ways for a vendor to “pay” an employee; the most common is
13-5. How can conflicts of interest be prevented and detected?
Answer: The prevention of conflicts of interest can be difficult. The primary resource for
heading off this complex act is a company ethics policy that specifically addresses the
13-6. What is a kickback scheme and how is it committed?
Answer: Kickback schemes usually involve the submission of invoices for goods and
13-7. What type of abuses may occur at the pre-solicitation stage of the bidding process?
Answer: In the pre-solicitation phase of the competitive bidding process—before bids are
13-8. Why is it problematic for an organization to set standards that are too high?
Answer: Anyone in fraud detection or deterrence who is aiming for perfection from the
13-9. How does the “perception of detection” impact fraud deterrence?
Answer: The deterrence of occupational fraud and abuse begins in the employee’s mind.
The perception of detection axiom is as follows:
13-10. What is the difference between fraud prevention and fraud deterrence?
Answer: Fraud prevention involves removing the root causes of the problem—for