Certified Fraud Examiner (CFE) — Question 21

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

Answer options

• A. Presolicitation scheme
• B. Need recognition scheme
• C. False sole-source scheme
• D. Submission scheme

Correct answer: B

Explanation

The correct answer is B, as a 'Need recognition scheme' involves purchasing goods or services that are not genuinely required, driven by a corrupt employee's direction. The other options do not accurately describe this situation; for instance, a presolicitation scheme pertains to improper practices before a solicitation process, while a false sole-source scheme involves claiming that only one supplier can provide a product or service.