Certified Fraud Examiner (CFE) — Question 10

A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:

Answer options

• A. Bid opening
• B. Fictitious Bidding
• C. Bid pooling
• D. Bid log

Correct answer: C

Explanation

The correct answer is C, Bid pooling, as it specifically refers to the practice of bidders working together to share contracts. The other options do not describe this collusion; Bid opening refers to the process of revealing bids, Fictitious Bidding involves submitting false bids, and Bid log is merely a record of bids.