CFE – Financial Transactions and Fraud Schemes — Question 81

Which of the following is an example of a corruption scheme?

Answer options

• A. A public company omits recurring costs from its financial statements to make the company appear more profitable than it actually is.
• B. Two coworkers steal confidential information from their employer and use the stolen data to start a competing business.
• C. A vendor offers the free use of a vacation house to a government procurement agent after the agent awards a lucrative contract to the vendor.
• D. A warehouse manager receives twenty laptops in a shipment but excludes five from the records and sells them to third parties.

Correct answer: D

Explanation

Option D is correct because it illustrates corruption through the misrepresentation of inventory and the illicit sale of goods. The other options involve unethical behaviors but do not specifically represent a corruption scheme as defined in this context. For example, option A is financial misrepresentation, option B is theft, and option C is bribery, but none fits the corruption scheme context as clearly as option D.