CERTIFIED FORENSIC FRAUD EXAMINER (CFFE)
MODULE TWO
LAW RELATED TO FRAUD
WEDNESDAY: 7 December 2022. Morning Paper. Time Allowed: 3 hours.
Answer ALL questions indicating the letter (A, B, C or D) that represents the correct answer. This paper is made up of one hundred (100) Multiple Choice Questions. Each question is allocated one (1) mark.
1. Rosa has no tax returns experience, she completed tax documents for her new business. The information required was complex and therefore the returns were improperly completed. Which of the following statements is most ACCURATE?
A. Rosa will not be liable for criminal penalties if the government suffered loss
B. Rosa will be liable for criminal penalties if she intentionally completed the documents improperly
C. Rosa will be liable for criminal penalties whether he intentionally or unintentional completed the documents improperly
D. All the above
2. Which one of the following statements related to (criminal) activities intended to enable bribery is NOT accurate?
A. Any person who knowingly assists a person or a private entity to give or receive a bribe obtaining property intended for use in bribery
B. Any person who knowingly assists a person or a private entity to give or receive a bribe obtaining property intended for use in bribery using, having possession of or transferring as a result or connection with bribery
C. Any person who unknowingly assists a person or a private entity to give or receive a bribe recording property which was obtained as a result of or in connection with bribery
D. All the above
3. Which of the following statements under the Bribery Act of 2016 is ACCURATE?
A. Under the Bribery Act, only private entities are now required to put in place procedures for the prevention of bribery and corruption appropriate to their size and scale and nature of their operations
B. Under the Bribery Act, only public entities are now required to put in place procedures for the prevention of bribery and corruption appropriate to the size, scale and nature of their operations
C. Failure of private entities to put in place such procedures is an offense on the part of director or a senior officer
D. All the above
4. Which of the following statement is NOT correct in regard to penalty under the Bribery Act of 2016?
A. Imprisonment (maximum of ten years)
B. Imposition of a fine (not exceeding KES 5,000,000/-
C. 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 not in addition to imprisonment
D. All the above
5. Which of the following statements is NOT accurate in regard to the Bribery Act of 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 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
6. Which 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. Delay with justifiable cause the opening or evaluation of tenders, the awarding of contract beyond the prescribed period.
D. All the above
7. Which of the following is NOT correct in regard to the Bribery Act of 2016?
A. The Bribery Act 2016 does not have wide implications for client in or operating into Kenya from abroad.
B. Because of the hefty penalties, the implications should be factored into all business activities, and businesses need to establish effective compliance programmes.
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. All the above
8. Harold is an agent of ABC government agency. Harold makes a statement to the principal indicating that the agency requires a computer system with a higher capacity than the one it had. During budgeting, the agent budgeted for the computer system and a budget of two billion is approved. It was common knowledge that the entity does not need such a big computer system. The current system was still working effectively and efficiently. Which of the following is NOT an offence committed the agent?
A. Abuse of office
B. Deceiving principle
C. Conflict of interest
D. None of the above
9. Which of the following statement is NOT correct in regard to the law of Breach of Trust or fiduciary duty?
A. People who can commit an offence of breach of trust are, officers, directors and executives
B. Employees entrusted with receiving organisation’s funds and making payments can be liable of breach of trust, if they embezzled the funds
C. People who are in position of trust owe the principal a duty of loyalty and care
D. Offences of breach of trust are usually brought to court as civil cases, for compensation of damages remedy
10. Which of the following statement is CORRECT in regard to forgery?
A. A fraudulent invoice presented to a procuring entity is a forgery committed the contractor or vendor
B. A fraudulent invoice presented to a procuring entity is misrepresentation of facts
C. A fraudulent invoice presented to a procuring entity is embezzlement
D. All the above
11. Which of the following is a method used for sending money to co-conspirator in a foreign country without sending funds through a financial institution? The party pays Broker A, the funds, and Broker A then directs Broker B, who lives in the foreign country, to pay the co-conspirator. Later, Broker A offsets his debt to Broker B paying someone at the direction of Broker B. Which of the following BEST describes this payment scheme?
A. Pre-paid credit cards
B. Money services business
C. Mortgage down-payments
D. None of the above
12. Any institution dealing with money can be ideal for money laundering. Which of the following financial institution would provide a conducive environment for money laundering?
A. Commercial banks
B. Micro finance banks
C. A SACCO
D. All the above
13. Which of the following 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 is an economic crime
B. Late payment to pay taxes or levies payable to public body
C. Making deposit payment for goods to be supplied
D. All the above
14. Which of the following Kenyan law does define soliciting or receiving an inducement as an offense?
A. Bribery Act of 2016
B. Anti-corruption and Economic Crimes Act
C. Public Finance Management Act
D. All the above
15. Which of the following offense is accompanied other offenses?
A. Computer forgery
B. Conspiracy
C. Abuse of office
D All the above
16. The Capital Markets Act prohibits insider trading. Which of the following is an example of inside trading?
A. Corporate officers, directors and employees trade their corporate’s securities based on material confidential information related to new business developments
B. Family members, friends and business associates of corporate officers, directors and employees trade their corporate securities based on public information
C. Employees of law firms, accounting firms or stock brokers trade their securities based on public information
D. All the above
17. Which of the following BEST describe the requirements for government to conduct searches and seizures?
A. Those facts that would induce a person of reasonable caution to believe that a crime has been committed and that the accused committed the crime
B. The set of facts showing proof beyond all doubt that a crime has been committed and that the accused committed the crime
C. The set of facts showing that its more likely than not that a crime has been committed and that the accused committed the crime
D. It is a general requirement for government officers to obtain search warrants
18. Which of the following statements in relation to false statement to government is CORRECT?
A. To violate a law criminalising false statements to government agencies, it need 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 suffered loss
D. All the above
19. Which of the following is considered an obstruction of justice?
A. Bribing a witness
B. Contacting a government investigator
C. Subpoenaing a government witness
D. Showing disrespect to a judge
20. The Kenya Anti-Corruption Advisory Board (KACC) was established to advise the commission generally on the exercise of its powers. Which of the following institutions is NOT represented on the KACC?
A. Kenya Association of Manufacturers
B. Central Organisation of Trade Unions
C. The Judiciary
D International Federation of Women Lawyers
21. Which of the following is NOT true 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 is a type of cybercrime
C. Computer forgery is a separate offence in addition to the underlying crime facilitated the forgery
D. All the Above
22. ABC Bank has an anti-money laundering program that has put in place internal controls, procedures to prevent money laundering, money laundering awareness training for employees, and a regular independent audit function to evaluate the effectiveness of the bank’s anti money laundering program. Which of the following is missing in the ABC Bank anti-money laundering program?
A. A senior designated risk and compliance officer
B. Reports of all foreign bank transfers to the government
C. A mandatory waiting period before cash deposits can be transferred
D. All the above
23. Red Corporation filed a bankruptcy proceeding in which all of its assets will be sold and the proceeds distributed to creditors. Under the World Bank Principles and Guidelines for Effective Insolvency and Creditor Rights Systems, which of the following parties is NOT an appropriate option for managing Red’s estate in the proceedings?
A. Red Corporation directors
B. Red’s creditors
C. Red Corporation’s bankers
D. All of the above
24. In a planned bust-out scheme, which of the following is a type of assets that the fraudster typically purchases on credit and then sells prior to closing the business?
A. Business insurance policies
B. Legal or accounting services
C. Health services
D. None of the above
25. Which of the following is TRUE in regard to the International Organisation of Securities Commissions (IOSCO)?
A. One of the objectives of the International Organisation of Securities Commissions (IOSCO) is to ensure that markets are fair, efficient and transparent
B. Enhancing the financial system’s growth
C. Harmonising securities laws and standards across the global
D. None of the above
26. Which of the following statements is NOT correct in regard to the Bribery Act 2016?
A. The Bribery Act, 2016 (the Bribery Act) came into force in 2016
B. The Bribery Act comes in the wake of changes and new appointments to the Ethics and Anti-Corruption Commission (EACC) in an initiative to combat corruption in all sectors of the country’s economy
C. The Act applies to individuals and entities in the public and private sectors
D. All the above
27. Which of the following statements is ACCURATE in relation to the fight against bribery?
A. Before the Bribery Act 2016, the Anti-Corruption and Economic Crimes Act did 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. Unlike the UK Bribery Act, the Bribery Act 2016 has no extra-territorial application in relation to bribery- related offenses carried outside Kenya
D. The Bribery Act 2016 has not made it a requirement for private entities to have in place procedures for the prevention of bribery
28. The main distinction between conflict of interest and corruption is that:
A. Conflict of interest is not regulated while corruption is regulated
B. Conflict of interest is not a crime while corruption is a crime
C. Conflict of interest results in a monetary gain while corruption is not necessarily gain related
D. None of the above
29. The Tax Procedure Act criminalises which one of the following fraudulent activities?
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. None of the above
30. Which of the statements is CORRECT in regard to false or misleading statements under the Tax Procedure Act?
A. A person commits an offence when the person deliberately makes a statement to an authorised officer that is false or misleading in a material particular
B. A person commits an offence when the person unintentionally omits from a statement made to an authorised officer any matter or thing without which the statement would be false or misleading in a material particular.
C. A person commits an offence when the person deliberately omits from a statement made to an authorised officer any matter or thing without which the statement would be false or misleading in a material particular
D. All the above
31. Under the Anti-corruption and Economic Crimes Act, which of the following statements is ACCURATE?
A. Misappropriation of public funds is defined as an economic crime
B. Failure to protect public property and revenue is defined as an economic crime
C. Fraud and embezzlement are defined as economic crimes
D. None of them is accurate
32. Cliff is a public officer of ABC ministry. Cliff fraudulently and unlawfully used the government payment system to make payments for services that were not offered. Which of the following is the offence that was committed Cliff?
A. An economic crime
B. Corruption
C. Failure to protect public property and revenue
D. None of the above
33. Which of the following statements is NOT correct in regard to conflicts of interest, under the Bribery Act 2016?
A. The agent knows or has reason to believe that the principal is unaware of the interest and the agent fail to disclose the interest the agent will have committed an offence
B. The 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 will not constitute a conflict of interest
D. If an agent of a public body knowingly acquires or holds, directly or indirectly, private interest in any contract agreement or investment, will not be guilty of an offence if the interest is disclosed to the principal
34. Which of the following statements is NOT accurate in regard to money laundering under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA)?
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 a reporting institution to undertake customer due diligence only on new customers
D. None of the above
35. Which of the following is NOT covered under the United Nations Convention against Corruption – Preventive Measures?
A. Anti-money laundering
B. Repatriation of guilty individuals
C. Public procurement
D. Codes of conduct
36. Which of the following is NOT a key function of the Ethics and Anti-Corruption Commission?
A. Preventive and advisory services
B. Asset tracing and recovery
C. Arbitration of cases
D. Public education
37. Which one of the following is NOT a type of corruption offence under the Anti-corruption and Economic Crimes Act?
A. Embezzlement
B. Conflict of interest
C. Abuse of office
D. Protection of public property and revenue
38. An agent who, to the detriment of his principal, uses, or gives to his principal, a document that he knows contains anything that is false or misleading in any material respect is guilty of an offence. Which of the following offence under the Anti-corruption and Economic Crimes Act BEST describe the offence?
A. Abuse of office
B. Conflict of interest
C. Corruption
D. None of the above
39. Which of the following statements is NOT correct in relation to giving a bribe as stipulated under the Bribery Act 2016?
A. A person commits the offence of giving a bribe if the person offers, promises or gives a financial or other advantage to another person, who does not know or believes the acceptance of the financial or other advantage would itself constitute the improper performance of a relevant function or activity.
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.
40. Which of the following statement is NOT true about arbitration of corruption cases?
A. Arbitration decisions can be appealed
B. Arbitration costs are usually borne both parties
C. Arbitration is mutual consent
D. Arbitration decisions have to be made within ninety (90) days.
41. Which of the following is NOT a proper defence against a tax fraud charge?
A. Death of the tax payer
B. No tax liability
C. Unintentional failure to pay taxes
D. Reliance on a tax expert
42. Which of the following is NOT a legal element that must be shown to prove a claim for 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. All of the above
43. Which of the following is NOT an offence under the Proceeds of Crime and Anti-Money laundering (POCAMLA)?
A. Money laundering
B. Failure to report all transactions over one million Kenya shillings
C. Financial promotion of an offence
D. All the above
44. Which of the following is NOT a recommendation that the OECD made to their member countries on combating bribery in international business.?
A. To enhance only criminal laws
B. To enhance banking and accounting requirements and practice
C. To enhance tax systems and regulations
D. All the above
45. Which of the following statements is TRUE on receiving of non-monetary gifts public officials?
A. A state officer shall not receive monetary gifts
B. A state officer may receive non-monetary gifts if the value does not exceed Sh.50,000
C. A state officer shall report all attempts to award him a non-monetary gift
D. A state officer may receive non-monetary gifts if the value does not exceed Sh.20,000
46. Which of the following is a legal element of official bribery?
A. The defendant offers, promises, or gives financial or other advantage
B. To a person who knows or believes the acceptance of the financial or other advantage would itself constitute improper performance of a relevant function or activity
C. The advantage is offered, promised, or given through a third party
D. All the above
47. Under the Bribery Act 2016, which of the following does NOT constitute a bribe?
A. Valuable securities
B. Liquidation of any loan
C. Discharge of any obligation or other liability
D. None of the above
48. Which of the following statement is NOT true about embezzlement?
A. The prosecution must prove that perpetrator was in a position of trust with the principal
B. The prosecution must prove that the perpetrator was entrusted with the money or property
C. The prosecution must prove that the perpetrator took away and denied the owner use of the money or property
D. The prosecution must prove that the perpetrator’s intent to embezzle the money or property
49. Which of the statement is NOT accurate in regard to laws criminalising false statements to government agencies?
A. A person can be found guilty of making a false statement only if the statement was made intentionally
B. A person can be found guilty of making a false statement even if the government did not suffer a loss
C. A person can be found guilty of making a false statement even if the statement was not made directly to a governmental department or agency
D. None of the above
50. Which of the following statements is NOT true with regard to Computer Misuse and Cybercrime?
A. Unauthorised access is an offence on its own under the Computer Misuse and Cybercrime
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 in addition to the unauthorised access
D. All the above
51. Which of the following organisation deals with anti- money laundering in Kenya?
A. Central bank of Kenya
B. Financial Reporting Centre (FRC)
C. The Financial Action Task Force (FATF)
D. None of the above
52. Money laundering has three stages. In which of the following stage is harder to detect money laundering?
A. Layering
B. Integration
C. Placement
D. All the above
53. Which of the following statement is CORRECT in regard to Financial Action Task Force?
A. Kenya is a member of the Financial Action Task Force
B. Kenya is not a member of the Financial Action Task Force
C. Financial Action Task Force, membership requirements are very stringent and not all countries have been able to meet the requirements
D. None of the above
54. Which of the following statement is NOT accurate under the Proceeds of Crime and Anti-money Laundering (POCAMLA)?
A. This act does not apply to accountants or advocates preparing or carrying out transactions on behalf of their clients
B. This 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 record
D. None of the above
55. Which of the following statement is NOT accurate in regard to Bid rigging under the Bribery Act 2016?
A. Bid rigging is a type of a corruption offence that is perpetrated bidders and procuring entity employees
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 because of an inducement or reward is bid rigging offence
D. Refraining from submitting a tender, proposal, quotation or bid
56. Which of the following is NOT a type of securities 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. Directors trading their shares based on inside information for their own benefit
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. All the above
57. Which of the following statements about securities laws and regulations is NOT true?
A. National securities laws and regulations have no extraterritorial reach
B. Most securities markets are regulated on an international basis
C. Securities exchanges are regulated entities that have regulatory authority
D. All the above
58. Which of the following tax avoidance schemes would be accurately classified as an income and wealth tax avoidance scheme?
A. Smuggling goods into a jurisdiction to avoid excise taxes
B. Fraudulently claim for refund of a value-added tax
C. Transferring assets to another person or entity to lower tax liability
D. All of the above E.
59. Which of the following is NOT a legal element that must be proven in a claim of official bribery under the Bribery Act 2016?
A. The recipient received a reward
B. The defendant acted with corrupt intent
C. The recipient is a government official
D. None of the above
60. Under the Bribery Act 2016 which of the following is NOT a relevant function or activity.
A. Function of a public or private nature
B. Any function carried out a state officer or public officer, pursuant to his or her duties
C. Any activity performed or on behalf of a body of persons whether corporate or otherwise
D. All the above
61. Which of the following statements is NOT accurate in regard to prevention of bribery under the Bribery Act 2016?
A. Public and private entities are now required to put in place procedures for the prevention of bribery and corruption appropriate to their size and scale and nature of their operations.
B. Failure of private entities to put in place such procedures is an offence on the part of the director or senior officer.
C. Only public entities are now required to put in place procedures for the prevention of bribery and corruption appropriate to their size and scale and nature of their operations.
D. All the above
62. Which of the following statements is NOT correct in regard to Protection of Whistle-blowers and Witnesses 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. EACC is charged with the responsibility to assist any entity and interested persons to develop and put in place procedures to protect whistle-blowers
63. The Bribery Act imposes heavy penalties for bribery-related offenses. Which of the following is NOT correct in regard to a penalty under the Bribery Act?
A. Imprisonment (maximum of ten years);
B. Imposition of a fine (not exceeding KES 5,000,000
C. Where the person received a quantifiable benefit or any other person suffered a quantifiable loss, imposition of additional mandatory fine (two times the amount of the benefit and/or loss)
D. All the above
64. The Bribery Act imposes heavy penalties for bribery-related offenses, which of the following statement is NOT correct in regards to penalty under the Bribery Act
A. Requirement to pay the benefit received to the Government
B. Confiscation of property acquired through proceeds of bribery
C. Being barred from holding public office or being a director or partner in Kenya
D. Disqualification from an elective person but not from serving as a director or partner in Kenya
65. Which of the following statements is NOT accurate in regard to proving conspiracy?
A. At least one of the conspirators knowingly committed at least one overt act in furtherance of the conspiracy
B. The defendant knew the purpose of the agreement and intentionally joined in the agreement
C. The defendant entered in an agreement to commit an illegal act
D. The defendant knew all the accomplices of the illegal act
66. Which one of the following is NOT accurate in relation to objects of the Computer Misuse and Cybercrime?
A. Protect the confidentiality, integrity and transparency of computer systems, programs and data
B. Prevent the unlawful use of computer systems
C. Facilitate for prevention, investigation, prosecution and punishment of cybercrimes
D. Facilitate international co-operation on matters covered under this Act
67. Which of the following is NOT accurate in regard to unauthorised access a person to a computer system, under the Computer Misuse and Cybercrimes Act 2018?
A. If the person is entitled to control access of the kind in question to the program or data, access the computer system, and manipulate data the action will not be considered as unauthorised access
B. It is immaterial that the unauthorised access is not directed at any particular program or data program or data of any kind
C. If the unauthorised access is not directed at any program or data held in any particular computer system, the action will not be considered as unauthorised access
D. None of the above
68. Which of the following statements is NOT correct in regard to unauthorised access with intent to commit further offence?
A. Unauthorised access with the intent to commit further offence under any law, or to facilitate the commission of a further offence that person or any other person, commits an offence
B. The further offence under any law committed through the unauthorised access will be an additional offence
C. On conviction, a fine not exceeding ten million shillings or to imprisonment for a term not exceeding ten years, or to both.
D. The further offence under any law committed through the unauthorised access will not be an additional offence
69. Which of the following statements is NOT accurate in regard to an unauthorised interference, to a computer system, program or data?
A. Unauthorised interference can only be committed a person with authorised access
B. Unauthorised interference can be committed a person with authorised or unauthorised access
C. Unauthorised interference can be committed a person with unauthorised access
D. All the above
70. Which of the following statements in regard to the United Nations Convention Against Corruption (UN Convention) is NOT accurate?
A. Member states must implement procedures and mechanisms to detect and prevent the transfer of assets obtained through illicit activities
B. Member states must establish independent anti-corruption bodies that provide oversight on the implementation of the UN Convention policies
C. It is not a must that member states must criminalise acts of corruption committed within their territories or their nationals
D. None of the above
71. If an accounting officer authorised payments for goods not supplied, which law BEST stipulate this kind of offence?
A. Anti-Corruption and Economic Crimes Act
B. Bribery Act
C. Public Finance Management Act
D. None of the above
72. Rosalind, a chief cashier, works in a big organisation with several cash points. The other cashiers surrender the cash collected to Rosalind at the close of business. When going home in the evening Rosalind took some money with her, to return after a few days. Which of the following BEST describes the offence committed?
A. Embezzlement
B. Theft
C. Fraud
D. Shimming
73. Which of the following is NOT an element that must be established to prove fraud based on the concealment of material facts?
A. The defendant failed to disclose a material fact
B. The defendant acted with intent to mislead or deceive the victim(s)
C. The defendant had knowledge of a material fact that he had a duty to disclose
D. All of the above
74. Which of the following statements is NOT true in regard to conflict-of-interest offense under the Anti-corruption and Economic Crimes Act?
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
75. Which of the following is NOT accurate Under the Tax Procedure Act 2015, in regard to criminalizing tax related actions?
A. The law does not criminalise schemes designed for tax avoidance
B. The law criminalises tax evasion
C. The law does criminalise fraudulent claims
D. All the above
76. Which of the following statement is ACCURATE in regard to bribery under the Bribery Act 2016?
A. Under the Bribery Act 2016, the prosecution must prove that the defendant acted with a corrupt intent in offering or receiving a bribe
B. Under the Bribery Act 2016, the prosecution must prove that the defendant acted improperly because of the bribe received or promised
C. Under the Bribery Act 2016, the prosecution must prove that the defendant received something of value capable of influencing his official act or a commercial business decision
D. None of the above
77. Which of the following statements is CORRECT in regard to the US, UK and Kenya Bribery Acts?
A. The U.S. Foreign Corrupt Practices Act has extra territorial application in offences committed in Kenya, if the offence involves bribe of a foreign official public company trading its securities in the New York Stock Exchange.
B. Both the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act prohibits facilitation payments, made to foreign officials to expedite performance
C. The Kenya Bribery Act does not prohibit facilitation payments, made to foreign officials to expedite performance
D. None of the above
78. Tsuma is on the boards of two companies that compete in the high road construction Tsuma, does not disclose this conflict, and he does not step down from the board of either company. Which of the following offence did Tsuma commit?
A. Corruption
B. Breach of due diligence
C. Conflict of interest
D. None of the above
79. Which of the following is CORRECT in regard to OECD Recommendation on Combating Bribery in International Business (Recommendation)?
A. OECD focuses on the “supply side”
B. OECD focuses on the “demand side”
C. OECD focuses on both the “supply side” and “demand side”
D. All the above
80. Which one of the following is NOT accurate in relation to objects of Computer Misuse and Cybercrime?
A. Protect the confidentiality, integrity, and availability of computer systems, programs, and data
B. Prevent the unlawful use of computer systems
C. Facilitate only detection, investigation, prosecution, and punishment of cybercrimes
D. Facilitate international co-operation on matters covered under this Act
81. Which of the following is TRUE about unauthorised access under the Computer Misuse and Cybercrimes Act 2018?
A. A person who causes, whether temporarily or permanently, a computer system to perform a function, infringing security measures, commits an offence
B. Intent to gain access, and knowing such access is unauthorised, commits an offence and is liable
C. On conviction, there is a fine not exceeding five million shillings or to imprisonment for a term not exceeding three years or to both
D. All the above
82. Which of the following is NOT correct about unauthorised access a person to a computer system, under the Computer Misuse and Cybercrimes Act 2018?
A. That person is entitled to control access of the kind in question to the program or data, access the computer system, and manipulate data
B. It is immaterial that the unauthorised access is not directed at any particular program or data program or data of any kind
C. It is immaterial that the unauthorised access is not directed at any program or data held in any particular computer system.
D. All the above
83. Which of the following statements is NOT correct in regard to unauthorised access with intent to commit further offence?
A. Unauthorised access with the intent to commit further offence under any law, or to facilitate the commission of a further offence that person or any other person, commits an offence
B. The further offence under any law committed through the unauthorised access will be an additional offence
C. On conviction, a fine not exceeding ten million shillings or to imprisonment for a term not exceeding ten years, or to both.
D. The further offence under any law committed through the unauthorised access will be NOT be an additional offence
84. Which of the following statements is NOT correct about an unauthorised interference, to a computer system, program, or data?
A. Unauthorised interference can be committed a person with authorised or unauthorised access
B. Unauthorised interference can only be committed a person with authorised access
C. Unauthorised interference can be committed a person with unauthorised access
D. All the above
85. Which of the following statement is NOT correct in regard to the Financial Action Task Force and Anti-money laundering efforts?
A. The Financial Action Task Force (FATF) is an international law that was established at the G-7 Summit in 1989
B. Its purpose is for developing and promoting standards and policies to combat money laundering and terrorist financing at both the national and international levels
C. The FATF’s Recommendations, revised in 2012, created the most comprehensive standard and a basic framework that its members should have.
D. All the above
86. To prove a criminal case in a court of law in the common law jurisdictions, the prosecution must prove intent. In regard to intent under the Anti-Corruption and Economic Crimes Act, which of the following statements is CORRECT?
A. Offence of receiving, soliciting, giving or offering of any benefit, under the Anti-Corruption and Economic Crimes Act does not require prove of intent
B. It is a defense in prosecution of an offence of receiving, soliciting, giving or offering of any benefit, under the Anti- Corruption and Economic Crimes Act, that it is customary in any business, undertaking, office, profession or calling
C. “It shall be a defence in prosecution that the act or omission was not within a person’s power or that the person did not intend to do the act or make the omission; or that the act or omission did not occur”
D. All the above
87. Which of the following statements in regard to Computer Misuse and Cybercrime is NOT Correct?
A. A person who knowingly and without authority discloses any password, access code or other means of gaining access to any program or data held in any computer system commits an offence
B. The person who knowingly disclose a password is liable, on conviction, to an applicable legal fines and for imprisonment.
C. A person who unknowingly through negligence discloses any password, access code or other means of gaining access to any program or data held in any computer system commits an offence under the Computer Misuse and Cybercrime
D. All the above are correct
88. Ephraim Mwania is an accounts payable accountant at XYZ state corporation. In the cause of his duties of preparing the disbursements, he enters fraudulent invoices and make the payments. Which of the following BEST describes the offenses committed Ephraim Mwania?
A. Computer forgery
B. Corruption and Cybercrime
C. Economic Crime and Cybercrime
D. None of the above
89. Rodah Chebet is a principal accountant at ABC government agency. Rodah Chebet is responsible for authorizing creditors’ payments. In collusion with the procurement manager, they agreed that Rodah Chebet authorise payments for goods that were not supplied and then later share the proceeds between themselves and the vendors. The principal accountant authorised and made the payments to the vendors. Which of the following is NOT correct in regard to the principal accountant’s ‘offences’?
A. The principal accountant, if proved, will be guilty of conspiracy and false pretences
B. The vendors, if proved, will be guilty of conspiracy, economic crime under the protection of government property and revenue, for fraudulently acquiring public property
C. The procurement manager if proved, will be guilty of corruption offences defined as conspiracy and deceiving principal
D. All the above
90. Which of the following statement is True in relation to evidence of corruption under the Anti-corruption and Economic Crimes Act?
A. Unexplained asset acquired at or around the time the person was reasonably suspected of corruption or economic crime at or around that time and for which there is no satisfactory explanation whose value is disproportionate to his known sources of income
B. Unexplained sources of funds for acquiring the assets is circumstantial evidence of corruption
C. Unexplained assets are type of circumstantial evidence of corruption
D. All the above
91. Which of the following statements is NOT correct in regard to corruption offences?
A. Corruption offences usually has an additional offence of conspiracy
B. An attempt to commit a corruption offence, where the offence is not accomplished is not an offence under the Anti- Corruption and Economics Crime Act
C. For every conspiracy offence, there must be an underlining offence
D. Abuse of office is a type of corruption offence, which is in addition to an underlying offence
92. Which of the following organisation deals with anti- money laundering in Kenya?
A. Central bank of Kenya
B. Financial Reporting Centre (FRC)
C. The Financial Action Task Force (FATF)
D. None of the above
93. Money laundering has three stages. In which of the following stage is harder to detect money laundering
A. Layering
B. Integration
C. Placement
D. All the above
94. Which of the following statement is CORRECT in regard to Financial Action Task Force?
A. Kenya is a member of the Financial Action Task Force
B. Kenya is not a member of the Financial Action Task Force
C. Financial Action Task Force, membership requirements are very stringent and not all countries have been able to meet the requirements
D. None of the above
95. Which of the following statement is NOT accurate under the POCAMLA?
A. This act does not apply to accountants or advocates preparing or carrying out transactions on behalf of their clients
B. This 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 record
D. None of the above
96. The Public Finance Management Act is an Act of Parliament. Which of the following is NOT a purpose of this Act?
A. Provide for the effective management of public finances the national and county governments
B. Provide for oversight responsibility of Parliament and county assemblies
C. Provide for management responsibility of Parliament and county assemblies
D. All the above
97. Which of the following is NOT accurate in regard to the responsibilities of the accounting officers for national government entities, Parliament and the Judiciary?
A. An accounting officer for a national government entity, Parliamentary Service Commission and the Judiciary shall be accountable to the National Assembly
B. Ensure that the resources of the respective entity for which he or she is the accounting officer are used in a way that is lawful and authorised
C. Only ensure that the resources used are budgeted for.
D. Ensure that all expenditure made the entity are authorised and lawful
98. Which of the statements is NOT Correct in under the Public Finance Management Act
A. The accounting officer must ensure that the entity keeps financial and accounting records that comply with this Act
B. The accounting officer must ensure that all financial and accounting records the entity keeps in any form, including in electronic form are adequately protected and backed up;
C. The accounting officer must ensure that all contracts entered into the entity are lawful
D. The accounting officer cannot be liable for failure to accomplish the above responsibilities, but rather the officers responsible for carrying out the respective duties
99. Stone a fraud suspect, confesses to commission of fraud. During Stone’s trial for fraud, the government introduces the confession as evidence of stone’s fraudulent act for which he is charged. What type of evidence is stone’s confession?
A. Testimonial
B. Circumstantial
C. Character
D. None of the above
100. Which of the following should be determined in regard to requirement for a search warrant in a jurisdiction with laws granting people the right to be free from unreasonable search and seizure?
A. If the government officers are involved
B. If it is a criminal offence
C. If there is sufficient suspicion
D. None of the above