Certified Fraud Examiner (CFE) — Question 19

Bid-rigging scheme occurs when:

Answer options

• A. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.
• B. an employee does not assist a vendor in winning a contract through the competitive bidding process.
• C. an employee once assists a vendor in winning a contract through a single competitive bidding process.
• D. an employee once assists a vendor in winning a contract through a single competitive bidding process.

Correct answer: A

Explanation

The correct answer, A, describes the act of an employee improperly helping a vendor secure a contract, which is the essence of bid-rigging. Options B, C, and D do not reflect the fraudulent assistance needed for a bid-rigging scheme, as B states no assistance is provided, while C and D mention assistance in a single instance, which does not capture the ongoing nature of bid-rigging.