Temat: What’s your fraud IQ?

What’s your fraud IQ?
This month: Combating contract and procurement fraud.

For nearly every company, making purchases and contracting for services are necessary parts of conducting business. Consequently, contract and procurement fraud represents a risk — and potentially a significant one — in most entities. Do you know how the contract and procurement processes can be manipulated by fraudsters? How prepared are you to protect against these risks? Take this Fraud IQ quiz and find out.

Question 1 of 5
Joshua, a government auditor, is auditing his agency’s contracts, and he notices some unexpected patterns in the procurement process. The lowest bidders on a series of contracts keep withdrawing their bids at the last minute. Often, these same bidders become subcontractors for the winning contractor. Additionally, the winning bid is consistently higher than cost expectations. Based on these findings, which of the following is most likely occurring?

a. A government employee is leaking confidential information to the bidding contractors.

b. One of the bidding contractors is extorting a government employee to tailor the bid specifications so that it wins each contract.

c. The contractors are colluding with each other to manipulate the procurement process.

d. The winning contractor is abusing the change-order process to overbill the government agency.

Submit: https://www.journalofaccountancy.com/issues/2019/feb/co...