Question

33. ABC, Inc. submits a bid on a contract. At the same time, it submits bids from several nonexistent companies. It appears to the contractor that there has been a vigorous bidding competition when in fact, ABC has been merely bidding against itself. This type of scheme is known as which of the following?

A. Complementary bids

B. Bid rotation

C. Bid suppression

D. Phantom bids

The correct answer is ___

34. Identify which one of the following is NOT generally a reason for public/consortia’s non-disclosure of COMPLETE data for an event?

1. Temptation to report reduced loss to prevent guessing the firm’s name
2. Prevention of reputational damage to the firm
3. Terms of settlement may prohibit complete disclosure
4. Because regulations prohibit complete disclosure of an event
   
   The correct answer is ___

35. In operational risk management, which of the following is a leading indicator of KRIs (key risk indicators)?

1. Key employees working in IT department are leaving the company
2. Computer system downtime has resulted in loss of a major client contract
3. Fire in the warehouse caused by lack of smoke detectors has resulted in increased premium from insurance carrier
4. Accident in the assembly plant has led to regulatory investigation of safety controls

            The correct answer is ___

36. Black, an accounts receivable clerk, stole customer A's monthly payment instead of posting it to A's account. When customer B's payment arrived a few days later, Black posted that payment to A's account so that it would not become delinquent. When C's payment arrived a few days after that, Black posted the payment to B's account, which was in danger of becoming past due. Black's method of crediting one account with money taken from another account is known as:

A. Check tampering

B. Lapping

C. Padding

D. Account rigging

The correct answer is ___

Answer 1

33. Phantom bids or bid rigging is a practice in which businesses indulge in non-competing and non-existing bids, in order to win a contract. It is considered as a practice for exploitation of consumers as well as an illegal practice of felony.

Answer: Option D

34. Temptation to report reduced loss to prevent guessing the firm’s name is not a valid practice for public/consortia’s non-disclosure of complete data for an event. Non-disclosure events or agreements cover trade secrets of the company, proprietary information or any confidential information, which the company wants to keep for itself.

Answer: Option A

35. Key risk indicators (KRIs) are the predictors of certain risky or unfavorable events of business. Leading KRIs are those, which are predictive in nature. Key employees working in IT department leaving the company can be a leading KRI about the operational loss in future.

Answer: Option A

36. Check lapping scheme is a fraudulent practice used to hide details about any kind of stolen payments. The method uses LIFO to hide details of the payments.

Answer: Option B