CERTIFIED FORENSIC FRAUD EXAMINER (CFFE)
MODULE TWO
LAW RELATED TO FRAUD PILOT PAPER
MARCH 2025. Time Allowed: 3 hours.
Answer ALL questions. This paper has two Sections. SECTION I consists of fifty (50) Multiple Choice Questions carrying fifty (50) marks. SECTION II has four (4) structured questions carrying fifty (50) marks. Marks allocated to each question are indicated at the end of the question.
SECTION I (50 MARKS)
1. Which one of the following Kenyan laws has NOT defined misrepresentation of facts as an offence?
A. Computer Misuse and Cybercrime Act
B. Penal Code
C. Public Procurement and Assets Disposal Act
D. Capital markets Act (1 mark)
ANSWER: A
2. Which one of the following statements is NOT ACCURATE in regard to international laws related to preventing and combating corruption?
A. United Nations Convention against corruption (UNCAC) has been integrated into the Kenya legal system
B. The African Union Convention on Preventing and Combating Corruption has been integrated into the Kenya legal system
C. United Nations Convention against Corruption (UNCAC) is yet to be integrated into the Kenya legal system
D. The international code of conduct for public officials is recognised Kenya law (1 mark)
ANSWER: C
3. Which one of the following statements is NOT a legal element to prove misrepresentation of facts as a legal offence?
A. The defendant concealed material facts
B. The defendant knew the statement or document was false
C. The defendant presented a material false statement or document
D. The victim relied on the misrepresentation (1 mark)
ANSWER: A
4. Which one of the following statements is NOT ACCURATE in regard to legal elements that must be shown to prove misrepresentation of material facts in a criminal trial?
A. The victim relied on the false statement and suffered financial loss
B. The defendant knew the statement or document was false
C. The defendant presented a material false statement or document
D. None of the statements is applicable (1 mark)
ANSWER: A
5. A public officer in charge of preparing financial statements deliberately failed to provide all the financial information that related to the public entity. Which one of the following legal offences BEST define the offence committed the public officer?
A. Misrepresentation of material facts
B. Concealment of material facts
C. Gross negligence
D. Forgery (1 mark)
ANSWER: B
6. Which one of the following statements is NOT a legal element of computer forgery?
A. Intentional input, alteration, deletion suppression of computer data, resulting in inauthentic data
B. With intent to be considered and acted upon for legal purposes
C. With intent to be considered and acted upon to make a decision
D. None of the statements is applicable (1 mark)
ANSWER: C
7. Which one of the following statements is NOT ACCURATE in regard to penalty under the Bribery Act 2016?
A. Imprisonment (maximum of ten years); and Imposition of a fine (not exceeding KES 5,000,000/- plus any other penalty or punishment
B. Where the person received a quantifiable benefit or any other person suffered a quantifiable loss, imposition of additional mandatory fine (five times the amount of the benefit and/or loss) but in addition to imprisonment
C. Where the person received a quantifiable benefit and any other person suffered a quantifiable loss, imposition of additional mandatory fine (five times the amount of the benefit and five times amount quantifiable loss in addition to the initial fine and imprisonment
D. Where the person received a quantifiable benefit and any other person suffered a quantifiable loss, imposition of additional mandatory fine (five times the amount of the benefit and five times amount quantifiable loss, but, not in addition to the initial fine and imprisonment (1 mark)
ANSWER: D
8. Which one of the following statements is NOT ACCURATE in regard to the Bribery Act 2016?
A. A person convicted for bribery and given penalties of a fine and imprisonment is required to pay the benefit received to the Government in addition
B. Under the Bribery Act, confiscation of property would be in addition to penalties of a fine and imprisonment
C. Under the Bribery Act, disqualification from serving as a director or partner of a private organisation, would not be in addition to penalties of a fine and imprisonment
D. Under the Bribery Act, being barred from holding public office would be in addition to penalties of a fine and imprisonment (1 mark)
ANSWER: C
9. Which one of the following statements is NOT a type of procurement offence under the Public Procurement and Assets Disposal Act?
A. A fraudulent act
B. Knowingly lie to or mislead a person carrying out a duty or function or exercising a power under this Act
C. An attempt to commit an offence
D. Corrupt conduct (1 mark)
ANSWER: C
10. Which one of the following statements is NOT ACCURATE in regard to the Bribery Act 2016?
A. The Bribery Act 2016 does not have wide implications for an entity that is not established in Kenya but do business in Kenya
B. Because of the hefty penalties, the implications should be factored into all business activities and businesses need to establish an effective bribery and corruption prevention policy
C. The Bribery Act has far-reaching implications for those doing business in Kenya or with Kenyan entities, alongside other extra-territorial statues on bribery
D. None of the statements is applicable (1 mark)
ANSWER: A
11. Ronald is an agent of XYZ government agency. Ronald makes a statement to the principal indicating that the agency need to buy laptops for their employees. There are laptops in the store that are yet to be given out. The agent budgeted for laptops and the bought the laptops. The agent received a reward from the vendor for influencing the procurement. Which one of the following statements is NOT an offence committed the agent?
A. Abuse of office
B. Deceiving principle
C. Misappropriation of funds
D. Bribery (1 mark)
ANSWER: C
12. Which one of the following statements is NOT ACCURATE in regard to the legal elements to prove breach of trust?
A. The defendant was in a position of trust
B. The defendant was entrusted with the organisation’s funds
C. The defendant did not act in the best interest of the principal
D. None of the statements is applicable (1 mark)
ANSWER: B
13. Which one of the following statements is NOT ACCURATE in regard to the legal elements of forgery?
A. The defendant represents a document with false contents
B. The defendant represents a document with false contents and the document has legal significance
C. The document was made or altered with the intent to defraud
D. The defendant made material alterations that affected the legal significance (1 mark)
ANSWER: A
14. Which one of the following statements is an example of an economic crime under the Anti – Corruption and Economic Crimes?
A. Causing a computer or any other electronic machinery to perform any function that directly or indirectly results in a loss or adversely affects any public revenue or service.
B. Asset misappropriation
C. Fraud
D. Conflict of interest (1 mark)
ANSWER: A
15. Which one of the following Kenyan laws defines soliciting or receiving an inducement as an offence?
A. Proceeds of crime and Anti- money laundering
B. Capital Markets Act
C. Public Finance Management Act
D. Criminal procedure Act (1 mark)
ANSWER: C
16. Which one of the following offences is NOT a substantive offence?
A. Conspiracy
B. Bid rigging
C. Asset misappropriation
D. None of the statements is applicable (1 mark)
ANSWER: D
17. Which one of the following statements is an example of inside-trading?
A. Corporate officers, directors and employees trade their corporate’s securities based on information already know to the public
B. Family members, friends and business associates of corporate officers, directors and employees trade their corporate securities based on information on the issuer’s prospectus
C. Employees of law firms, accounting firms or stock brokers trade their securities based on information obtained in the course of their engagement
D. None of the statements is applicable (1 mark)
ANSWER: C
18. Which one of the following statements is an exemption of the requirements for government to conduct searches and seizures?
A. A police officer believes based on reasonable grounds that the suspect committed the offence
B. A police officer believes beyond reasonable doubt, the suspect committed the offence
C. A person commits an offence in the presence of a police officer
D. A police officer has sufficient evidence that the person committed the offence (1 mark)
ANSWER: C
19. Which one of the following statements in regard to false statement to government is NOT ACCURATE?
A. To violate a law criminalising false statements to government agencies, the statements does not need to be made directly to the government
B. A statement made to a third party does not violate laws related to false statements to the government
C. To violate laws related false statements to government, the government does not have to suffer loss
D. An offence of false statement to the government occurs, even when the government did not rely on the false statement (1 mark)
ANSWER: B
20. Which one of the following statements is NOT a type of obstruction of justice offence?
A. Contempt of court
B. Bribing a witness
C. Destroying documents
D. Impeding a government auditor in the performance of their official duties (1 mark)
ANSWER: A
21. Which one of the following statements in relation to the UK Bribery Act and Bribery ACT 2016 is NOT ACCURATE?
A. The UK Bribery Act has broader application than the Bribery Act 2016 in regard to commercial bribery
B. Unlike the U.S. Foreign Corrupt Practices Act’s (FCPA), the UK Bribery Act and Bribery 2016 criminalise facilitation payments
C. The UK Bribery Act exercise jurisdiction over all individuals for acts of corruption when any part of the offences occurs in the UK
D If an organisation’s anti-corruption programme complies with the U.S. Foreign Corrupt Practices Act’s (FCPA), it will not be adequate for the purpose of complying with the Bribery Act 2016
ANSWER: A
22. Which one of the following statements is NOT ACCURATE in regard to computer forgery?
A. Computer forgery involves a person who intentionally inputs, alters, deletes or suppresses computer data, resulting in inauthentic data with the intent that it be considered or acted on for legal purposes, as if it were authentic
B. Computer forgery involves a person who intentionally inputs, alters, deletes or suppresses computer data
C. Computer forgery is a separate offence in addition to the underlying crime
D. Computer forgery is a type of computer misuse offence (1 mark)
ANSWER: B
23. Which one of the following statements is NOT ACCURATE in relation to the fight against bribery?
A. Before the Bribery Act 2016, the Anti–Corruption and Economic Crimes Act did not impose significant responsibilities on the private sector to put anti-corruption measures in place
B. The Bribery Act 2016 imposes express duties on private entities and individuals to prevent and report incidents of bribery
C. Like the UK Bribery Act, the Bribery Act 2016 has extra-territorial application in relation to bribery-related offenses carried outside Kenya
D. The Bribery Act 2016 does not criminalise facilitation fees to expedite the process but rather an inducement to influence decision (1 mark)
ANSWER: D
24. Which one of the following acts is NOT criminalised the U.S. Foreign Corrupt Practices Act’s (FCPA)?
A. A U.S company promises to pay a foreign official $100,000 as a facilitation fee
B. A U.S company transfers $500,000 to a foreign official to influence the official to award it a public construction contract
C. A UK company that is trading securities on the New York Stock Exchange transfers $500,000 to a foreign official to influence the official to award it a public contract
D. None of the statements is applicable (1 mark)
ANSWER: A
25. Which one of the following fraudulent activities is criminalised the Tax Procedure Act?
A. Any person who, in relation to a tax period, unknowingly omits from his or her return any amount which should have been included
B. Any person who, in relation to a tax period, unknowingly claims any relief or refund to which he or she is not entitled
C. Any person who, in relation to a tax period, unknowingly prepares false books of account or other records relating to that other person or falsifies any such books of account or other records
D. Any person who, in relation to a tax period, intentionally omits from his or her return any amount which should have been included (1 mark)
ANSWER: D
26. Which one of the following terms is the main legal element of conflict of interest?
A. Undisclosed interest
B. Personal interest
C. Financial gain
D. Conferring benefit to self or another person (1 mark)
ANSWER: A
27. Which one of the following statements is NOT ACCURATE in regard to Non-Financial Designated Reporting Institution under the POCAMLA Act?
A. The POCAMLA obligations include establishing and maintaining internal reporting procedures
B. Upon the coming into force of this Act (POCAMLA) a reporting institution shall undertake customer due diligence on the existing customers
C. The POCAMLA make it an obligation for financial institution to undertake customer due diligence on new customers and existing customer
D. The POCAMLA does not make it an obligation for Non-Financial Designated Reporting Institution to put anti- money laundering programs in place (1 mark)
ANSWER: D
28. Which one of the following statements is NOT ACCURATE in regard to the similarities of Bribery Act 2016 and UK Bribery Act?
A. Both the Bribery Act 2016 and the UK Bribery Act have broader applications than the US Foreign Corrupt Practice Act
B. Both the Bribery Act 2016 and the UK Bribery Act criminalise payment of commercial bribery
C. Unlike the UK Bribery Act Bribery Act, 2016 does not criminalise commercial bribery
D. Both the Bribery Act 2016 and the UK Bribery Act criminalise payment of facilitation fees (1 mark)
ANSWER: C
29. Which one of the following offences is a type of corruption offence under the Bribery Act?
A. Fraud
B. Bid rigging
C. Abuse of office
D. None of the answers is correct (1 mark)
ANSWER: D
30. Which one of the following statements is NOT a legal element of deceiving principal?
A. The defendant is an agent of the principal
B. The document is material
C. The document has false contents and is capable of defrauding
D. None of the statements is applicable (1 mark)
ANSWER: C
31. Which one of the following statements is NOT ACCURATE in relation to giving a bribe under the Bribery Act 2016?
A. A person commits the offence of giving a bribe if the person unknowingly offers promises or gives a financial or other advantage to another person
B. A person commits the offence of giving a bribe if the person offers, promises or gives a financial or other advantage to another person even if the person’s performance of a relevant function is not improper
C. It shall not matter whether the person to whom the advantage is offered, promised or given is the same person as the person who is to perform or has performed, the function or activity concerned
D. It shall not matter whether the advantage is offered, promised or given a person directly or through a third party (1 mark)
ANSWER: A
32. Which one of the following statements is the BEST defence against tax criminal liability?
A. Death of the tax payer
B. No tax liability
C. Unintentional failure to pay taxes
D. Reliance on a tax expert (1 mark)
ANSWER: B
33. Which one of the following statements is NOT a legal element of fraudulent misrepresentation of material facts in fraud civil litigation?
A. The victim relied on the misrepresentation
B. The victim suffered damages as a result of the misrepresentation
C. The defendant knew the representation was false
D. The defendant concealed material facts (1 mark)
ANSWER: D
34. Which one of the following laws has defined misuse of information as an offence?
A. POCAMLA Act
B. Computer Misuse and Cybercrime
C. Capital Markets Act
D. Public Finance Management Act (1 mark)
ANSWER: A
35. Which one of the following statements is NOT a recommendation that the OECD made in regard to preventing bribery in international business?
A. To enhance civil, criminal and administrative laws
B. To enhance banking and accounting requirements and practice
C. To enhance tax systems and regulations
D. None of the statements is applicable (1 mark)
ANSWER: D
36. Which one of the following laws and rules DOES NOT prohibit commercial bribery?
A. Bribery Act
B. United Nations Convention
C. Public Procurement and Assets Disposal Act
D. None of the statements is applicable (1 mark)
ANSWER: D
37. Which one of the following offences does NOT constitute an advantage under the Bribery Act 2016?
A. Contract or employment
B. Liquidation of any loan
C. Discharge of any obligation or other liability
D. None of the statements is applicable (1 mark)
ANSWER: D
38. Which one of the following statements is NOT ACCURATE in regard to misappropriation of assets?
A. The prosecution must intent prove
B. The prosecution must prove that the defendant was entrusted with asset
C. The prosecution must prove that the defendant took away the asset
D. The prosecution must prove that the asset was material (1 mark)
ANSWER: D
39. Which one of the following statements is NOT ACCURATE in regard to unauthorised access under Computer Misuse and Cybercrime?
A. Unauthorised access is a substantive offence even if no other offence was committed
B. Unauthorised offence with the intent to commit further offence is an additional offence
C. The offence committed under any other law gaining unauthorised access will not be an additional offence to the unauthorised access
D. The offence committed under any other law gaining unauthorised access will be in addition to unauthorised access (1 mark)
ANSWER: C
40. Which one of the following laws is the Assets Recovery Agency established?
A. POCAMLA
B. Anti- Corruption and Economic Crimes Act
C. Bribery Act
D. Asset Recovery Law (1 mark)
ANSWER: A
41. Which one of the following statements is NOT ACCURATE in regard to the recommendations of Financial Action Task Force?
A. Kenya is not a member of the Financial Action Task Force but benchmarks in developing anti-money laundering programmes
B. Financial Action Task Force membership requirements are very stringent and none of the countries have been able to meet the requirements
C. Financial Action Task Force membership requirements are very stringent and only a few countries have been able to meet the requirements
D. Financial Action Task Force does not expect countries to meet all the recommendation (1 mark)
ANSWER: B
42. Which one of the following statements NOT accurate in regard to reporting institutions under the POCAMLA Act?
A. The act does not apply to firms that do not offer financial services transactions on behalf of their clients
B. The act put an obligation on reporting institutions to take reasonable measures to establish the truth of the identity of any applicant seeking to enter into business relationship with it
C. This act put an obligation on the reporting institutions to establish and maintain customers’ records
D. None of the statements is applicable (1 mark)
ANSWER: A
43. Which one of the following statements is NOT ACCURATE in regard to legal elements of bid rigging under Anti- Corruption and Economic Crimes Act?
A. Agreement to engage in illegal act
B. Refraining from submitting a tender, proposal, quotation or bid because of an inducement or reward is bid rigging offence
C. Withdrawing or changing a tender, proposal, quotation or bid
D. Giving and receiving of a bribe (1 mark)
ANSWER: C
44. Which one of the following statements is NOT ACCURATE in regard to market manipulation crime under the Capital Markets Act?
A. Increase or are likely to increase the price with the intention of inducing another person to purchase, subscribe for or to refrain from selling securities issued the same company or a related company or such other listed securities
B. Employees trading their shares based on inside information that is not known the public
C. Stabilise or are likely to stabilise, the price with the intention of inducing another person to sell, purchase or subscribe for or to refrain from selling, purchasing or subscribing for, securities issued the same company or a related company or such other listed securities
D. None of the statements is applicable (1 mark)
ANSWER: B
45. Which one of the following statements is ACCURATE in regard to Capital Markets Act?
A. National securities laws and regulations have extraterritorial reach
B. Most securities markets are regulated on an international basis
C. Securities exchanges are regulated entities that have regulatory authority
D. National securities laws and regulations does not have extra territorial reach (1 mark)
ANSWER: A
46. Which one of the following statements is NOT a legal element of official bribery under the Bribery Act 2016?
A. The defendant received an interest in a property
B. The defendant acted with criminal intent
C. The criminal defendant is a government official
D. The criminal defendant engaged in a corrupt conduct (1 mark)
ANSWER: B
47. Which one of the following statements is NOT an offence of strict liability under the Bribery Act?
A. Bribery of foreign officials
B. Activities to enable bribery
C. Receiving a bribe
D. Paying a bribe (1 mark)
ANSWER: B
48. Which one of the following statements is NOT ACCURATE under the Bribery Act in regard to protection of witnesses?
A. Under the Act, it is an offence to harass, intimidate or disclose any information regarding informants, whistle-blowers or witnesses
B. The Bribery Act mandates law enforcement agencies to establish mechanisms to protect the identity of informants and witnesses
C. Under this Act, it is an offence for an organisation to punish a whistle-blower or witness for offenses committed the whistle-blower or witness
D. None of the statements is applicable (1 mark)
ANSWER: C
49. Which one of the following statements is NOT ACCURATE in regard to a penalty for acts of bribery?
A. Imprisonment of a maximum of ten years
B. Imposition of a fine not exceeding Sh.5,000,000
C. Where the person received a quantifiable benefit or any other person suffered a quantifiable loss, imposition of a fine (five times the amount of the benefit and/or loss) not in addition to the initial fine
D. None of the statements is applicable (1 mark)
ANSWER: C
50. Which one of the following statements is NOT ACCURATE in regard to the disqualification from holding a public office?
A. Disqualification from holding a public office if one is charged with a bribery offence
B. Disqualification from holding a public office if one is convicted with a bribery offence
C. Disqualification from holding a public office also attracts the initial penalty in addition
D. Disqualification from holding a public office also attracts penalties for quantifiable benefits or losses in addition (1 mark)
ANSWER: A
SECTION II (50 MARKS)
51. Analyse the legal elements of the following legal offences:
(a) Misrepresentation of material facts. (5 marks)
(b) Concealment of material facts. (5 marks)
(c) Conflict of interest. (5 marks)
(d) Conspiracy. (5 marks)
(Total: 20 marks)
52. Describe the following bribery offences:
(a) General bribery offences. (5 marks)
(b) The legal elements of each of the offences. (5 marks)
(c) Two bribery offences of strict liability. (5 marks)
(Total: 15 marks)
53. Evaluate FIVE corruption offences under the Anti-Corruption and Economic Crimes Act. (Total: 10 marks)
54. Highlight FIVE Kenyan substantive laws related to fraud and corruption. (Total: 5 marks)
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