CERTIFIED FORENSIC FRAUD EXAMINER (CFFE) MODULE TWO
LAW RELATED TO FRAUD
WEDNESDAY: 3 December 2025. Morning Paper. Time Allowed: 3 hours.
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. Answer ALL questions. Marks allocated to each question are indicated at the end of the question.
SECTION I (50 MARKS)
1. Which one of the following is ACCURATE in regard to OECD recommendations on combating bribery in international business? OECD focuses on .
A. the supply side
B. the demand side
C. both the supply side and demand side
D. demand side of foreign officials (1 mark)
2. Which one of the following statements is NOT ACCURATE in regard to the Bribery Act 2016, UK Bribery Act and the US Foreign Corrupt Act ?
A. The Bribery Act, 2016 and the UK Bribery Act have broader applications than the US Foreign Corrupt Practice Act
B. The US Foreign Corrupt Practice Act, the Bribery Act 2016 and the UK Bribery Act criminalise payment of bribes to foreign officials
C. Unlike the US Foreign Corrupt Practice Act, the Bribery Act 2016 and the UK Bribery Act criminalise payment of facilitation fees
D. The US Foreign Corrupt Practice Act does not have extra territorial implication like the Bribery Act and the UK Bribery Act (1 mark)
3. Which one of the following statements is NOT true about embezzlement? The prosecution must prove .
A. that the perpetrator owed the principal duty of trust
B. prove that the perpetrator was entrusted with the money or property
C. that the perpetrator took away and denied the owner use of the money or property
D. the perpetrator’s intent to embezzle the money or property (1 mark)
4. Which one of the following statements is NOT ACCURATE with regard to computer misuse and cybercrime offences?
A. Unauthorised access is an offence under the computer misuse and cybercrime
B. Unauthorised offence with the intent to commit further offence, the offence committed is an additional offence.
C. The offence committed under any other law gaining unauthorised access is another offence in addition to the unauthorised access.
D. Knowingly gaining unauthorised access to a computer is an offence under the computer misuse and cybercrime. (1 mark)
5. Which one of the following Kenyan laws BEST define bid rigging as a substantive offence?
A. Public Procurement and Assets Disposal Act
B. Penal Code
C. Public Finance Management Act
D. Anti-Corruption and Economics Crime Act (1 mark)
6. Which one of the following is NOT a securities fraud under the Capital Markets Act?
A. Insider trading
B. Obtaining gain fraud
C. Forgery
D. False trading and market rigging (1 mark)
7. Which one of the following is NOT a type of corruption offence under the Bribery Act?
A. Giving a bribe
B. Bid rigging
C. Receiving a bribe
D. Bribery of foreign officials (1 mark)
8. Which one of the following is NOT a legal element that must be proven in a claim of bribery in public sector under the Bribery Act, 2016?
A. The recipient received an inducement or a reward
B. The recipient engaged in a corrupt conduct
C. The recipient is a government official
D. The recipient knowingly received a bribe (1 mark)
9. Which one of the following statements is ACCURATE under the Bribery Act 2016?
A. A director or senior officer of a private sector has personal liability for bribery
B. All bribery offences are of strict liability
C. Intent an element of bribery
D. A private entity does not have liability for bribery conduct their directors (1 mark)
10. Uchumi Mbaya Corporation filed a bankruptcy proceeding in which all of its assets would be sold and the proceeds would be distributed to creditors. Under the World Bank Principles and Guidelines for Effective Insolvency and Creditor Rights Systems, which one of the following parties is an appropriate option for managing Uchumi Mbaya Corporation in the proceedings?
A. Uchumi Mbaya’s directors
B. Uchumi Mbaya’s creditors
C. An independent insolvency representative
D. The external auditor (1 mark)
11. Which one of the following is a legal element that MUST be shown to prove a claim of fraudulent misrepresentation of material facts in criminal case?
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 impact was material (1 mark)
12. Which one of the following statements is ACCURATE regarding disclosure of passwords under Computer Misuse and Cybercrime Act?
A. Negligent disclosure does not constitute an offence
B. Intentional disclosure without authorisation constitutes an offence
C. Only IT administrators are liable for disclosure
D. Disclosure is irrelevant if no data is harmed (1 mark)
13. Which one of the following statements is NOT a type of improper payments under the Public Finance Management Act?
A. Payments for goods not supplied or services not rendered
B. Payments for unnecessary or excessive costs
C. Payments for projects without prior planning
D. Payments that are not budgeted for (1 mark)
14. Which one of the following actions is NOT an offence under the Computer Misuse and Cybercrime Act?
A. Forgery
B. Computer fraud
C. Concealment of material facts
D. Unauthorised access to a computer (1 mark)
15. Which one of the following actions is NOT an offence of strict liability?
A. Forgery
B. Abuse of office
C. Deceiving principal
D. Misrepresentation of material facts (1 mark)
16. Which one of the following is ACCURATE regarding the Bribery Act 2016?
A. Only the act of giving a bribe is criminalised
B. Both giving and receiving bribes are criminalised
C. Bribery must influence the recipient for an offence to occur
D. The act does not apply to foreign entities (1 mark)
17. Which one of the following statements is NOT ACCURATE in regard to deceiving principal under the Anti- Corruption and Economics Crimes Act?
A. It is only an agent who can deceive principal
B. Deceiving principal is an offence of strict liability
C. To prove deceiving a principal, the prosecution must prove intent
D. To prove deceiving a principal, the prosecution must prove knowledge that statement is false (1 mark)
18. Which one of the following is NOT a legal element to prove misrepresentation of facts in a civil litigation?
A. The defendant knowingly 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)
19. Which one of the following statements is ACCURATE in regard to the legal elements that must be shown to prove misrepresentation of material facts in a criminal trial?
A. The victim relied on the false statement
B. The victim suffered financial loss
C. The defendant intentionally represented a false document
D. The defendant knew the statement was a forgery (1 mark)
20. The corruption court has jurisdiction over several types of offences. Which one of the following is NOT one of them?
A. Economic crime
B. Corruption offences
C. Financial crimes
D. Fraud civil suits (1 mark)
21. Which one of the following laws is BOTH procedural and administrative?
A. Public Procurement and Assets Disposal Act
B. Public Finance Management Act
C. Anti-Corruption and Economics Crimes Act
D. Tax Procedure Act (1 mark)
22. Which one of the following 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. Sign a contract contrary to the requirements of this Act
D. Abuse of office (1 mark)
23. Which one of the following statements is ACCURATE in regard to breach of trust?
A. The defendant, in a breach of trust case, must be in a position fiduciary duty
B. The defendant was trusted with the organisation’s funds
C. A breach of trust case is usually taken to court as a criminal case
D. A breach of trust has legal element of intent (1 mark)
24. Which one of the following BEST describes a legal offence of buying excessive goods in the public sector?
A. Misappropriation of funds
B. Economic crime
C. Wasteful expenditure
D. Corruption (1 mark)
25. Which one of the following statements BEST describes the offence of submitting a fraudulent invoice to a procuring entity?
A. A fraudulent invoice presented to a procuring entity is a forgery
B. A fraudulent invoice presented to a procuring entity is misrepresentation material of facts offence
C. A fraudulent invoice presented to a procuring entity is misappropriation of funds offence
D. A fraudulent invoice presented to a procuring entity is concealment of material facts offence (1 mark)
26. Which one of the following statements is NOT ACCURATE in regard to conflict of interest offence in public and private sector?
A. If an agent has a direct or indirect private interest in a decision that his principal is to make, the agent is guilty of an offense if the agent knows or has reason to believe that the principal is unaware of the interest and the agent fails to disclose the interest
B. If an agent votes or participates in the proceedings of his principal in relation to the decision
C. A private body may authorise its agent to vote or participate in the proceedings of the private body and the voting or participation of an agent as so authorised
D. A public body may authorise its agent to vote or participate in the proceedings of the public body and the voting or participation of an agent as so authorised (1 mark)
27. Which one of the following statements is NOT ACCURATE about official and commercial bribery?
A. Bribery Act, 2016 criminalises commercial bribery
B. UK Bribery Act does not criminalise commercial bribery
C. US Foreign Corrupt Practice Act criminalises commercial bribery
D. Unlike the US Foreign Corrupt Practice Act, Bribery Act 2016 criminalises commercial bribery (1 mark)
28. Which one of the following is the BEST defense in a tax criminal trial?
A. Death of the tax payer
B. No tax liability
C. Lack of intent
D. Reliance on a tax expert (1 mark)
29. Which one of the following is NOT ACCURATE in regard to abuse of office?
A. One of the legal elements of abuse of office is that the public officer has a prescribed office or position
B. Abuse of office is a substantive offence that can be charged together with another substantive offence
C. Abuse of office is a substantive offence that cannot be charged with another substantive offence
D. Abuse of offence is a corruption offence that can be charged together with an economic crime (1 mark)
30. Which one of the following institutions is NOT obliged to comply with the reporting requirements of the Proceeds of Crime and Anti-Money laundering (POCAMLA) Act?
A. Every organisation handling cash
B. Insurance company
C. Audit firms
D. Law firms (1 mark)
31. Which one of the following is NOT an offence under the Proceeds of Crime and Anti-Money laundering (POCAMLA)?
A. Failure to report suspicious transactions
B. Failure to report all transactions over one million Kenya shillings
C. Financial promotion of an offence
D. Tipping of relevant parties (1 mark)
32. Which one of the following organisations is established under the Proceeds of Crime and Anti-Money laundering (POCAMLA)?
A. Central Bank of Kenya
B. The Asset Recovery Agency
C. The Ethics and Anti-Corruption Commission
D. None of the above (1 mark)
33. Which one of the following is NOT ACCURATE Under the Tax Procedure Act 2015, in regard to criminalising tax related actions?
A. The law criminalises schemes designed for tax avoidance
B. The law criminalises tax evasion
C. The law has not defined misrepresentation of material facts related to tax as an offence
D. The law criminalises material misrepresentation matters related to tax (1 mark)
34. Which one of the following is a legal element that must be shown to prove forgery?
A. The victim relied on the misrepresentation
B. The victim suffered damages as a result of the misrepresentation
C. The document had false contents
D. The document had false contents with legal significance (1 mark)
35. Under the Anti-corruption and Economic Crimes Act, which one of the following statements is NOT ACCURATE?
A. Misrepresentation of documents with legal significance
B. Failure to protect public property and revenue is defined as an economic crime
C. Fraud and embezzlement are defined as corruption offence
D. Abuse of office to confer an economic benefit is an economic crime (1 mark)
36. Which one of the following Kenyan laws defines soliciting or receiving an inducement as an offence but has not paying or offering a bribe as an offence?
A. Anti- Corruption and Economic Crimes Act
B. Capital Markets Act
C. Bribery Act
D. Public Finance Management Act (1 mark)
37. Which one of the following offences is associated with an underlying offence?
A. Conspiracy
B. Attempt to commit a corruption office
C. Bid rigging
D. Asset misappropriation (1 mark)
38. Which one of the following is NOT a type of fraud associated with capital market manipulation?
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. Insider trading of securities employees or directors
C. Stabilize or are likely to stabilize, 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)
39. Which one of the following laws sets the rules and procedures of determining fraud criminal offences?
A. Evidence Act
B. Civil Procedure Act
C. Criminal Procedure Code
D. Criminal Procedure Act (1 mark)
40. Which one of the following statements in regard to false claims from government revenue is NOT accurate?
A. To violate a law criminalising false claims to government agencies, the claims does not need to be made directly to the government
B. A claim made through a third party does not violate laws related to false claims to the government
C. To violate laws related false claims from government revenue, the government does not have to suffer loss
D. An offence of false claim from government revenue occurs even when the government did not rely on the false claim
(1 mark)
41. Which one of the following BEST describes the conduct of hindering an officer from performing a function?
A. Obstruction of justice
B. Corruption conduct
C. Fraudulent activity
D. Corrupt intent (1 mark)
42. Which one of the following offences BEST describes failure to exercise due care in the performance of a professional duty?
A. Gross negligence
B. Breach of trust
C. Carelessness
D. Lack of diligence (1 mark)
43. Which one of the following is NOT ACCURATE in regard to legal elements 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 is a separate offence in addition to the underlying crime
C. Computer forgery will result to an additional offence of computer fraud
D. Computer forgery involves a person who intentionally inputs, alters, deletes or suppresses computer data
(1 mark)
44. Which one of the following statements is ACCURATE regarding the Proceeds of Crime and Anti-Money Laundering (POCAMLA) Act?
A. It only applies to financial institutions
B. It requires customer due diligence for new and existing clients
C. Reporting institutions are exempt from maintaining records
D. Money laundering offences are optional to report (1 mark)
45. Which one of the following laws define buying unnecessary goods in state corporation as an offence criminal Law?
A. Anti- Corruption and Economic Crimes Act
B. Bribery Act
C. Public Finance Management Act
D. Public Procurement and Assets Disposal Act
(1 mark)
46. Which one of the following statements is ACCURATE in regard to improper payments in the public sector?
A. Buying excessive or unnecessary goods
B. Paying for goods or services not rendered
C. Misappropriation of funds
D. Misapplication of funds (1 mark)
47. Which one of the following is NOT a tax fraud offence under the Tax Procedure Act, 2015?
A. Any person knowingly omits from his or her return any amount which should have been included.
B. Any person knowingly claims any relief or refund to which he or she is not entitled
C. Any person knowingly makes any incorrect statement which affects his or her liability to tax
D. Any person prepares false books of account or other records relating to that other person or falsifies any such books of account or other records (1 mark)
48. Which one of the following statements is NOT ACCURATE in regard to tax offences?
A. Some tax offences are classified as corruption offences
B. Some tax offences are classified as fraud
C. Criminal tax offences require prove of intent
D. Tax offences are classified as financial crimes (1 mark)
49. Which one of the following offences is a substantive offence but not underlying offence?
A. Forgery
B. Conspiracy
C. Computer fraud
D. Tax avoidance (1 mark)
50. Which one of the following offences BEST describes failure to exercise due care that expected of a person acting on behalf of another person or organisation?
A. Lack of loyalty
B. Breach of trust
C. Lack of care
D. Lack of diligence (1 mark)
SECTION II (50 MARKS)
51. Explain the legal elements of the following offences:
(a) Wasteful expenditure. (4 marks)
(b) Fraudulent payments. (4 marks)
(c) Breach of trust. (4 marks)
(d) Abuse of office. (4 marks)
(e) Deceiving principal. (4 marks)
(Total: 20 marks)
52. Explain FIVE financial misconduct offences and their respective legal elements. (Total: 15 marks)
53. In relation to misrepresentation of material facts:
(a) Explain THREE offences of misrepresentation of material facts and the Kenyan laws that have defined the respective offences. (6 marks)
(b) Explain TWO offences and the respective Kenyan laws that have legal element of misrepresentation of material facts but are not offences of misrepresentation of material facts. (4 marks) (Total: 10 marks)
54. In relation to fraudulent legal offences:
(a) Identify THREE fraudulent legal offences that require prove of intent in court proceedings. (3 marks)
(b) Identify TWO fraudulent legal offences that do not require prove of intent in court proceedings.
(2 marks)
(Total: 5 marks)
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