CERTIFIED FORENSIC FRAUD EXAMINER (CFFE) MODULE TWO
LAW RELATED TO FRAUD
WEDNESDAY: 20 August 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 laws has defined engaging in unnecessary or excessive procurement as an offence even if there was prior planning and a budget in a public entity?
A. Bribery Act, 2016
B. Anti-Corruption and Economic Crimes Act
C. Public Finance Management Act
D. Public Procurement and Assets Disposal Act (1 mark)
2. Which one of the following laws would be applied in a case of engaging in unnecessary or excessive procurement in a private company leading to loss of substantial amounts of money?
A. Bribery Act, 2016
B. Public Finance Management Act
C. Public Procurement and Assets Disposal Act
D. Company law (1 mark)
3. Which one of the following laws has defined financial crimes?
A. Anti-Corruption and Economic Crimes Act
B. Capital Markets Act
C. Public Finance Management Act
D. None of the above (1 mark)
4. Which one of the following organisations recommended enhancing civil, criminal and administrative laws to combat bribery in international business?
A. OECD
B. United Nations Convention
C. African Union
D. None of the above (1 mark)
5. Which one of the following laws DOES NOT prohibit payments to expedite a procurement process or payments?
A. Bribery Act, 2016
B. UK Bribery Act
C. Foreign Corrupt Practice Act
D. None of the above (1 mark)
6. Which one of the following statements is NOT ACCURATE in regard to unauthorised access?
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 be in addition to unauthorised access
D. Unauthorised access is not a substantive offence if no further offence was committed (1 mark)
7. Which one of the following Kenyan laws is NOT an administrative law?
A. POCAMLA
B. Anti-Corruption and Economic Crimes Act
C. Bribery Act
D. Evidence Act (1 mark)
8. Which one of the following BEST describes a legal offence committed a competent contractor refraining from submitting a tender?
A. Conspiracy
B. Bid rigging
C. Bid suppression
D. None of the above (1 mark)
9. Which one of the following statements is NOT ACCURATE in regard to bid rigging offence?
A. Bid rigging is an offence of strict liability
B. Bid rigging offence involves an extra offence of conspiracy
C. Bid rigging always involves collusion between procuring entity’s employees and the vendors
D. Bid rigging is a corruption offence (1 mark)
10. Which one of the following offences are NOT of strict liability?
A. General bribery offences
B. Activities to enable bribery
C. Deceiving principal
D. Conflict of interest (1 mark)
11. Which one of the following statements is ACCURATE in regard to Public Procurement and Assets Disposal Act? Public Procurement and Assets Disposal 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)
12. Which one of the following offences can a Chief Executive Officer of a government entity be charged with for authorising improper payments in a scenario where he/she was not aware that the payments were fraudulent?
A. Breach of trust
B. Abuse of office
C. Misappropriation of funds
D. Gross negligence (1 mark)
13. Which one of the following is NOT a legal element of general bribery offences under the Bribery Act, 2016?
A. Receive an inducement or an advantage
B. Paying an inducement or an advantage
C. Knowingly receiving a bribe
D. Giving a reward (1 mark)
14. Which one of the following statements is NOT ACCURATE in regard to what constitutes misrepresentation of material facts? An offence of misrepresentation of material facts exists .
A. even if the victim did not rely on the misrepresentation
B. even if the victim did not suffer financial loss
C. even if the defendant did not know that the statement was false
D. only if the statement represented is material (1 mark)
15. Which one of the following statements is NOT public officers’ offences under the Public Finance Management Act?
A. Misappropriation of funds or assets
B. Concealment of material financial information
C. Paying, offering or promising a bribe
D. Incurring wasteful expenditure (1 mark)
16. Which one of the following individuals and entities are NOT under the application of the anti-bribery regulations?
A. Private entities
B. Public officers
C. Public entities
D. None of the above (1 mark)
17. Which one of the following statements is NOT ACCURATE in regard to penalties and punishment for bribery offences under the Kenya bribery law?
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 to the fine and imprisonment
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 be in addition to penalties of a fine and imprisonment
D. None of the above (1 mark)
18. Which one of the following statements is NOT a legal offence under the Anti- Corruption and Economics Crimes Act?
A. Bid rigging
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. Deceiving a principal (1 mark)
19. Which one of the following statements is a legal element required to prove misappropriation of assets?
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. None of the above (1 mark)
20. Which one of the following actions is NOT an offence associated with breach of trust?
A. Bribery
B. Failure to prevent bribery and corruption
C. Abuse of office
D. Conspiracy (1 mark)
21. Which one of the following documents BEST describes misrepresentation of material facts?
A. A document with false contents
B. A fraudulent invoice
C. A fraudulent claim
D. A material document with false contents (1 mark)
22. Which one of the following statements is NOT ACCURATE in regard to bribery under the Bribery Act, 2016?
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)
23. Which one of the following types of payment are NOT criminalised the Foreign Corrupt Practice Act?
A. A U.S company promises to pay a foreign official $100,000 to expedite a process
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 above (1 mark)
24. Which one of the following statements describes criminal tax liability 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)
25. Which one of the following offences DOES NOT require collusion to commit the offence?
A. Abuse of office
B. Misappropriation of funds
C. Concealment of material facts
D. Bribery (1 mark)
26. Which one of the following statements is NOT ACCURATE in regard to anti- money laundering under the POCAMLA Act?
A. The POCAMLA obligations include establishing and maintaining internal reporting procedures
B. Upon the coming into force of 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)
27. Which one of the following statements is NOT ACCURATE in regard to criminalising corrupt conduct?
A. Both the Bribery Act 2016 and the UK Bribery Act have broader applications than the US Foreign Corrupt Practice Act in criminalising bribery conduct
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 all types of bribery
D. Both the Bribery Act 2016 and the UK Bribery Act criminalise all conducts of bribery (1 mark)
28. Which one of the following offences under the Bribery Act, 2016 requires prove of intent as legal element?
A. Activities to enable bribery
B. Giving a bribe
C. Receiving a bribe
D. Bid rigging (1 mark)
29. Which one of the following statements is NOT ACCURATE in regard to bribery offences 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)
30. Which one of the following statements is the BEST defence against tax 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)
31. Which one of the following statements is NOT a must to prove in misrepresentation of material facts in fraud criminal proceedings?
A. The victim suffered damages as a result of the misrepresentation
B. The defendant knew the representation was false
C. The misrepresented statement was material
D. None of the above (1 mark)
32. Which one of the following actions is NOT a corruption offence under the Anti-Corruption and Economic Crimes Act?
A. Asset misappropriation
B. Fraud
C. Conflict of interest
D. Fraudulent payments (1 mark)
33. Which one of the following Kenyan laws has defined soliciting or receiving a bribe as an offence but not paying of a bribe?
A. Bribery Act, 2016
B. Anti-Corruption and Economic Crimes Act
C. Penal Code
D. Public Finance Management Act (1 mark)
34. Which one of the following actions is a substantive offence in addition to another substantive offence?
A. Conspiracy
B. Bid rigging
C. Asset misappropriation
D. Aiding and abetting (1 mark)
35. Which one of the following statements is ACCURATE in regard to the most common securities fraud?
A. Corporate officers, directors and employees trade their corporate’s securities based on information already known 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 of publicised financial statements
D. Insider trading is one of the most common securities frauds (1 mark)
36. Which one of the following BEST describes the type of laws that are commonly applied in criminal fraud offences in the Kenyan Jurisdiction?
A. Legal statutes
B. Legal principles
C. Codified principles
D. Penal Code (1 mark)
37. Which one of the following BEST describes the offence of fraudulent claims from government revenue or property?
A. Economic crime
B. Financial crime
C. Financial misconduct
D. Corruption (1 mark)
38. Which one of the following statements BEST describes the offence of providing false or misleading information to an officer performing a function?
A. Obstruction of justice
B. Misrepresentation of material facts
C. Concealment of material facts
D. Perjury (1 mark)
39. Which one of the following Kenyan laws have NOT defined obstruction of justice as an offence?
A. Public Finance Management Act
B. Public Procurement and Assets Disposal Act
C. POCAMLA
D. Computer Misuse and Cybercrime (1 mark)
40. Which one of the following statements is NOT ACCURATE in regard to the offence of computer misuse? Computer forgery .
A. 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. involves a person who intentionally inputs, alters, deletes, or suppresses computer data
C. is a separate offence in addition to the underlying crime
D. will result to an additional offence of computer fraud (1 mark)
41. Which one of the following statements is NOT a type of false trading and market rigging offences under the Capital Markets Act?
A. Entering into or carries out, directly or indirectly, any transaction for the sale or purchase of securities which does not involve a change in the beneficial ownership of the securities
B. Offering to sell securities at a price which is substantially the same as the price at which he has made or proposes to make, or knows that an associate of his has made or proposes to make, an offer to buy the same or substantially the same, number of securities
C. Officers, directors or employees buy or sell shares based on information that is not known to the public
D. None of the above (1 mark)
42. Which one of the following BEST describes the offence of failure to disclose material information when the person has duty under the circumstances to disclose?
A. Misrepresentation of material facts
B. Concealment of material facts
C. Forgery
D. Deceiving principal (1 mark)
43. Which one of the following is NOT an offence associated with the management and administration of public funds?
A. Receiving a bribe
B. Misappropriation of public funds
C. Wasteful expenditure
D. None of the above (1 mark)
44. Which one of the following conducts results to two computer offence and an additional underlying offence?
A. If a person intentionally inputs, alters, deletes, suppresses computer data, resulting in inauthentic data
B. If a person gains unauthorised access
C. If a person engages in an unauthorised interference
D. If a person 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)
45. Which one of the following offences is NOT of strict liability under the Public Procurement and Assets Disposal Act?
A. Knowingly lie or mislead a person carrying out a duty
B. Obstruct or hinder a person carrying out a duty
C. Delay without justifiable cause opening or evaluation on of a tender
D. Splitting a contract (1 mark)
46. Which one of the following is NOT an element of corruption and economic crimes?
A. Corrupt conduct
B. Corrupt intent
C. An advantage or reward
D. Collusion (1 mark)
47. Which one of the following statements is NOT ACCURATE in regard to the 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 2016 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. None of the above (1 mark)
48. Which one of the following is NOT a legal element of an economic crime under the Anti- corruption and Economics Crimes Act?
A. Corrupt intent
B. Corrupt conduct
C. Fraudulent payment from government revenue
D. None of the above (1 mark)
49. Which one of the following statements constitutes legal elements of forgery?
A. The document contents are capable of defrauding another person
B. The defendant knew the statement or document was false
C. The victim relied on the misrepresentation
D. The document is material (1 mark)
50. Which one of the following statements is NOT considered a public entity in regard to the management of public finances?
A. Private – Public Partnership
B. Government agency
C. State corporation
D. None of the above (1 mark)
SECTION II (50 MARKS)
51. Explain the legal elements of the following offences:
(a) Misrepresentation of material facts. (4 marks)
(b) Concealment of material facts. (4 marks)
(c) Conspiracy. (4 marks)
(d) Computer forgery. (4 marks)
(e) Computer fraud. (4 marks)
(Total: 20 marks)
52. Explain FIVE legal offences and their legal elements associated with competitive procurement biding fraud schemes that can be perpetrated the following parties in a scenario of allegations of fraudulent payments for goods not delivered:
(a) Accounting officer/ Chief executive officer. (3 marks)
(b) Head of procurement. (3 marks)
(c) Inspection and acceptance committee. (3 marks)
(d) Vendors. (3 marks)
(e) Stores supervisor. (3 marks)
(Total: 15 marks)
53. Explain FIVE bribery and corruption offences that do not require prove of intent. (Total: 10 marks)
54. In relation to the Kenyan laws:
(a) Identify TWO Kenyan substantive laws that have defined bribery as a legal offence. (2 marks)
(b) State TWO Kenyan procedural laws that will be used in criminal trials. (2 marks)
(c) Identify ONE Kenyan law which is both substantive and administrative and could be applied in improper payments from government revenue. (1 mark)
(Total: 5 marks)
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