CERTIFIED FORENSIC FRAUD EXAMINER (CFFE) MODULE TWO
LAW RELATED TO FRAUD
THURSDAY: 24 April 2025. Morning Paper. 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 (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 offences could be prosecuted under both the Public Procurement and Assets Disposal Act as well as the Anti-Corruption and Economic Crimes Act?
A. Misrepresentation of material facts
B. Engaging in projects without prior planning
C. Concealment of material facts
D. Embezzlement of funds (1 mark)
2. Which one of the following laws has defined malicious reporting as an offence?
A. POCAMLA
B. Computer Misuse and Cybercrime
C. Capital Markets Act
D. Public Finance Management Act (1 mark)
3. Which one of the following is NOT an OECD recommendation to combat 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)
4. Which one of the following laws does NOT criminalise facilitation fees?
A. Bribery Act, 2016
B. UK Bribery Act
C. Foreign Corrupt Practice Act
D. None of the above (1 mark)
5. Which one of the following statements is NOT ACCURATE in regard to embezzlement of funds?
A. The prosecution must intent prove
B. The prosecution must prove that the defendant was entrusted with funds
C. The prosecution must prove that the defendant took away the funds
D. The prosecution does not need to prove intent (1 mark)
6. Which one of the following statements is NOT ACCURATE in regard to offences 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)
7. Which one of the following Kenya laws is NOT both substantive and administrative law?
A. POCAMLA
B. Anti-Corruption and Economic Crimes Act
C. Bribery Act
D. None of the answers is applicable (1 mark)
8. Which one of the following is NOT a legal elements of bid rigging?
A. Collusion among bidders
B. Refraining from submitting a tender, proposal, quotation or bid because of an inducement
C. Refraining from submitting a tender, proposal, quotation or bid because of a reward
D. Giving and receiving of a bribe (1 mark)
9. Which one of the following statements does NOT describe securities’ manipulation scheme?
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 above (1 mark)
10. Which one of the following offences requires intent as a legal element to prove the offence?
A. Bid rigging
B. Unlawful payments from government revenue
C. Bribery
D. Activities to enable bribery (1 mark)
11. Which one of the following is offences of strict liability?
A. Abuse of office
B. Activities to enable bribery
C. Misrepresentation of material facts
D. None of the above (1 mark)
12. Which one of the following statements is NOT ACCURATE under the Bribery Act, 2016?
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. Under this Act, it is not an offence for an organisation to punish a whistle-blower or witness for offenses committed the whistle-blower or witness (1 mark)
13. Which one of the following statements is ACCURATE in regard to Anti-Corruption and Economics Crimes Act? Anti-Corruption and Economics Crimes Act is .
A. both substantive and administrative law
B. both procedural and administrative law
C. not an administrative law
D. only a substantive law (1 mark)
14. Which one of the following parties in an organisation can commit an offence of breach of trust from a legal perspective?
A. An accountant
B. An internal auditor
C. An accounting officer
D. A manager (1 mark)
15. Which one of the following statements is NOT a legal element of bribery under the Bribery Act, 2016?
A. Receive an inducement or an advantage
B. Paying an inducement or an advantage
C. Engaging in activities to enable bribery
D. Corrupt conduct (1 mark)
16. Which one of the following statements is NOT a legal element of concealment of material facts?
A. The defendant had a duty to disclose the material facts
B. The defendant knew the statement or document was false
C. Intent to deceive or mislead
D. The victim suffered loss (1 mark)
17. Which one of the following offences is NOT an offence under the Public Finance Management Act?
A. Failure to keep proper books and records
B. Concealment of material facts
C. Misappropriation of public funds
D. None of the above (1 mark)
18. Which one of the following offences is both computer fraud and computer forgery?
A. Intentional input, alteration, deletion suppression of computer data, resulting in authentic data
B. Unauthorised access
C. Unauthorised interference
D. Intentionally inputs, alters, deletes or suppresses computer data, resulting in inauthentic data with the intent that it be considered or acted upon for legal purpose (1 mark)
19. Which one of the following offences is NOT of strict liability under the Bribery Act 2016?
A. Activities to enable bribery
B. Giving a bribe
C. Receiving a bribe
D. Bribery of foreign official (1 mark)
20. Which one of the following is NOT an element of giving a bribe offence under the bribery Act 2016?
A. A corrupt conduct
B. Corrupt intent
C. An advantage or reward
D. Conspiracy (1 mark)
21. Which one of the following statements is NOT ACCURATE in regard to extra territorial implications under the Bribery Act 2016?
A. The Bribery Act 2016 does not have implications for an entity that is not established in Kenya under any circumstances
B. The Bribery Act has far-reaching implications for those doing business in Kenya or with Kenyan entities
C. Like the UK Bribery Act the Bribery Act 2016 has far-reaching implications
D. The Bribery Act 2016 has implications for an entity that is not established in Kenya under some circumstances (1 mark)
22. Which one of the following parties is capable of deceiving principle under the Anti-corruption and Economics Crimes Act?
A. Finance manager
B. Chief Executive Officer
C. Internal auditor
D. Procurement manager (1 mark)
23. Which one of the following DOES NOT constitute misrepresentation of facts?
A. The document contents have legal significance
B. The defendant knew the statement or document was false
C. The victim relied on the misrepresentation
D. The statement was material (1 mark)
24. Which one of the following is NOT a legal element that must be proved in misrepresentation of material facts in a criminal proceeding?
A. The victim suffered financial loss
B. The defendant knew the statement or document was false
C. The statement was material
D. None of the above (1 mark)
25. Which one of the following is NOT a legal offence of financial misconduct committed the public officer?
A. Wasteful expenditure
B. Fails to keep proper books and records
C. Corrupt conduct
D. Makes improper payments (1 mark)
26. Which one of the following substantive laws have defined two different types of offences in one?
A. Computer misuse and Cybercrime
B. Bribery Act
C. Public Finance Management Act
D. POCAMLA (1 mark)
27. Which one of the following statements is NOT ACCURATE in regard to penalties and punishment under 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)
28. Which one of the following is NOT a defined offence under the Public Procurement and Assets Disposal Act?
A. Splitting procurement
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)
29. Which one of the following is NOT a legal element of prove breach of trust?
A. The defendant was in a position of trust
B. The defendant acted negligently
C. The defendant did not act in the best interest of the principal
D. The defendant engaged in conflict of interest (1 mark)
30. Which one of the following is NOT an offence facilitated breach of trust?
A. Conflict of interest
B. Misappropriation of funds
C. Abuse of office
D. Tax evasion (1 mark)
31. Which one of the following term is NOT a forgery?
A. A document with false contents
B. A fraudulent invoice
C. A fraudulent claim
D. A forged check (1 mark)
32. Which one of the following statements is NOT ACCURATE in regard to bribery and corruption under the Bribery Act and the Anti- Corruption and Economic Crimes Act?
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)
33. Which one of the following acts is NOT criminalised the Foreign Corrupt Practice Act?
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. A U.S company promises to pay a chief executive officer $100,000 to secure a business (1 mark)
34. Which one of the following statements describes criminal tax offence related to tax period?
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)
35. Which one of the following offences is associated with conflict of interest?
A. Abuse of office
B. Misappropriation of funds
C. Concealment of material facts
D. Bribery (1 mark)
36. Which one of the following statements is NOT ACCURATE in regard to reporting institution under the POCAMLA Act?
A. The POCAMLA obligations include establishing and maintaining internal reporting procedures
B. Upon the coming into force of POCAMLA Act, a reporting institution shall undertake customer due diligence on the existing customers
C. The POCAMLA Act makes 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 programmes in place (1 mark)
37. Which one of the following statements is NOT ACCURATE in regard to 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)
38. Which one of the following offences falls under the Bribery Act, 2016?
A. Activities to enable bribery
B. Bid rigging
C. Abuse of office
D. Misappropriation of funds (1 mark)
39. Which one of the following statements is NOT a legal element of giving a bribe under the Bribery Act 2016?
A. A person commits the offence of giving a bribe if the person knowingly 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)
40. Which one of the following is NOT a 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)
41. Which one of the following is NOT a legal element of misrepresentation of material facts in fraud civil trial?
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. None of the answers is applicable (1 mark)
42. Which one of the following terms is an economic crime under the Anti – Corruption and Economic Crimes Act?
A. Asset misappropriation
B. Fraud
C. Conflict of interest
D. Making payments for services not rendered from government revenue (1 mark)
43. 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. Criminal procedure Act
D. None of the above (1 mark)
44. Which one of the following offences is a secondary offence?
A. Conspiracy
B. Bid rigging
C. Asset misappropriation
D. Aiding and abetting (1 mark)
45. Which one of the following statements is NOT an insider-trading securities fraud?
A. Corporate officers, directors and employees trade their corporate’s securities based on information already know to the public
B. 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. Corporate officers, directors and employees trade their corporate’s securities based on inside information not known to the public (1 mark)
46. Which one of the following is procedural laws the set the rules and procedures of determining criminal substantive offences?
A. Evidence Act
B. Criminal Procedure Code
C. Civil Procedure Act
D. Penal Code (1 mark)
47. False claims from government revenue or property is a type of .
A. economic crime
B. corruption offence
C. financial misconduct offence
D. asset misappropriation offence (1 mark)
48. Which one of the following terms is NOT an action that constitutes hindering person in performance of functions?
A. Destroying evidence
B. Providing false or misleading information
C. Threating an officer
D. None of the above (1 mark)
49. Which one of the following Kenyan laws has NOT defined hindering a person in performance of functions as an offence?
A. Public Finance Management Act
B. Public Procurement and Assets Disposal Act
C. POCAMLA
D. None of the above (1 mark)
50. Which one of the following is NOT ACCURATE in regard to offence of 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 will result to an additional offence of computer fraud (1 mark)
SECTION II (50 MARKS)
51. In relation to fraudulent or corrupt activities, analyse the legal elements of the following legal offences:
(a) Abuse of office. (4 marks)
(b) Breach of trust. (4 marks)
(c) Bid rigging. (4 marks)
(d) Gross negligence. (4 marks)
(e) Deceiving a principal. (4 marks)
(Total: 20 marks)
52. Explain FIVE economic crimes under the Anti-Corruption and Economic Crimes Act which are associated with custody, management and administration of public revenue or property. (Total: 15 marks)
53. Explain FIVE fraudulent or corrupt offences that are of strict liability. (Total: 10 marks)
54. In relation to the Kenyan substantive laws:
(a) Identify THREE substantive laws that have defined misrepresentation of material facts as an offence.
(3 marks)
(b) Identify TWO substantive laws that have defined concealment of material information as an offence.
(2 marks)
(Total: 5 marks)
……………………………………………………………………..