LAW RELATED TO FRAUD

WEDNESDAY:  3 August 2022. Morning paper.                                                                                  Time Allowed: 3 hours.

This paper is made of one hundred (100) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated one (1) mark.

1. Which of the following statements is CORRECT in regard to the Bribery Act 2016?

A. The Bribery Act, 2016 came into force on 13 January 2017 with the object of providing a framework for the prevention, investigation, and punishment of bribery and related offenses                                                                                 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 both private and public sectors
D. All the above (1 mark)

2. Which of the following statements is NOT accurate in relation to the fight against corruption?

A. Before the Bribery Act 2016 the law did not impose significant responsibilities on the private sector in the fight against corruption
B. The Bribery Act 2016 imposes express duties on private entities and individuals the duty to prevent and report incidents of bribery
C. The Bribery Act 2016 does not have extra-territorial application in relation to bribery-related offenses carried outside Kenya
D. The Bribery Act 2016 has made it a requirement for private entities to have in place procedures for the prevention of bribery (1 mark)

3. The anti-bribery provisions criminalize which one of the following acts?

A. A company promises to pay a foreign official Sh.10,000,000 to win a contract
B. A company transfers Sh.10,000,000 to a foreign official to influence the official to award it a public construction contract
C. A company that is trading securities on the securities exchange transfers Sh.10,000,000 to a foreign official to influence the official to award it a public construction contract
D. All of the above (1 mark)

4. The Tax legislation criminalizes which one of the following fraudulent activities?

A. Any person who, in relation to a tax period, knowingly omits from his or her return any amount which should have been included
B. Any person who, in relation to a tax period, knowingly claims any relief or refund to which he or she is not entitled
C. Any person who, in relation to a tax period, knowingly prepares false books of account or other records relating to that other person or falsifies any such books of account or other records
D. All the above (1 mark)

5. Which of the following statements is NOT correct in regard to false or misleading statements under the Tax legislation?

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 (1 mark)

6. Which of the following statements is NOT accurate in regard to Jurisdiction to try tax cases?

A. Despite any other written law, a person charged with the commission of an offense under a tax law may be prosecuted in any place in Kenya in which the person may be in custody for the offence
B. Despite any other written law, an offence under this Act may be tried in the court designated to try offences of corruption or economic crimes
C. Despite any other written law, an offence under this Act may be tried in the high court of Kenya designated to try offences of corruption or economic crimes
D. All the above are correct (1 mark)

7. 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 a corruption offense
C. Fraud and embezzlement are defined as economic crimes
D. None of them is accurate (1 mark)

8. Bett has no tax returns experience, he completed tax documents for his new business. The information required was complex and therefore the returns were improperly completed. The act was unintentional. Which of the following statements is MOST ACCURATE?

A. Bett will only be liable for criminal penalties if the government suffered loss
B. Bett will be liable for criminal penalties if he intentionally completed the documents improperly
C. Bett will be liable for criminal penalties whether he intentionally or unintentional completed the documents improperly
D. All the above are correct (1 mark)

9. Which one of the following statements related to criminal activities intended to enable bribery is MOST ACCURATE?

A. Any person who knowingly assists a person or a private entity to give or receive a bribe by 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 by obtaining property intended for use in bribery by using, having possession of or transferring as a result or connection with bribery
C. Any person who knowingly assists a person or a private entity to give or receive a bribe by recording property which was obtained as a result of or in connection with bribery
D. All the above (1 mark)

10. Which of the following statements under the Bribery Act 2016 is NOT 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 private 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 the director or senior officer
D. The Bribery Act mandates law enforcement agencies to establish mechanisms to protect the identity of informants and witnesses (1 mark)

11. Which of the following is a penalty under the Bribery Act 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)
D. All the above (1 mark)

12. Which of the following statements is NOT accurate in regard to the Bribery Act 2016?

A. A person convicted for bribery and given penalties of a fine and imprisonment is not 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 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 (1 mark)

13. Which of the following is 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 without justifiable cause the opening or evaluation of tenders, the awarding of contract beyond the prescribed period
D. All the above (1 mark)

14. Which of the following is TRUE in regard to the Bribery Act 2016?

A. The Bribery Act 2016 has wide implications for clients in Kenya, 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 (1 mark)

15. James is an agent of ABC government agency. James makes a statement to the principal indicating that the agency requires a computer system with a higher capacity that the one they have. The agent prepares the procurement documents and the procurement is authorized. The agency has not even utilized half of the modules in the current system. The procurement of the system caused the agency one million shillings, which was not necessary. Under the Anti-Corruption and Economic Crimes Act, which of the following statements is NOT accurate in regard to the scenario above?

A. The above scenario is a type of corruption of deceiving principal by the agent
B. The above scenario is a type of corrupt conduct by the agent
C. The above scenario is a type of fraudulent act by the agent
D. All the above are accurate (1 mark)

16. Jose is a public servant of XYZ ministry. Jose fraudulently and unlawfully used the government payment system to make payments for goods that were not supplied. Which of the following statements, under the Anti- Corruption and Economic Crimes is NOT accurate?

A. Jose’s conduct was a type of an economic crime
B. Jose’s conduct was an offence of failure to protect government property and or revenue
C. Jose’s conduct was a type of corruption offence
D. All the above are accurate (1 mark)

17. Which of the following statements is NOT accurate 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 authorize 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 (1 mark)

18. Which of the following statements is NOT CORRECT 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, registering with the centre
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 does not make it an obligation for a reporting institution to undertake customer due diligence on the existing customers
D. The offences under the POCAMLA include, money laundering, failure to report suspicious regarding proceeds of crime, misrepresentation and failure to comply with the provisions of this act (1 mark)

19. Which of the following acts would constitute violations under the anti-bribery provisions?

A. To promise to pay a foreign official Sh.500,000 to induce a contract
B. A company makes a payment of Sh.500,000 to a foreign official to influence the official to award a public contract
C. A foreign company that is publicly traded on the securities exchange transfers Sh.2,300,000 to a foreign official to influence the official to award it a public construction contract
D. All of the above (1 mark)

20. Which of the following statements in regard to the Bribery Act 2016, UK Bribery Act, and the US Foreign Corrupt Act is NOT CORRECT?

A. The Bribery Act 2016 and the UK Bribery Act have broader applications than the US Foreign Corrupt Practice Act
B. Unlike 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. All the above are correct (1 mark)

21. Which one of the following is a type of corruption offence under the Anti-corruption and Economic Crimes Act?

A. Embezzlement or misappropriation of public funds
B. Fraud
C. Abuse of office
D. All the above (1 mark)

22. 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 which of the following offence, under the Anti-corruption and Economic Crimes Act

A. Deceiving the principal
B. Conflict of interest
C. Corruption
D. Forgery (1 mark)

23. 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 knows 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 does not commit the offence of giving a bribe if the person offers, promises or gives a financial or other advantage to another person 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 by a person directly or through a third party (1 mark)

24. Which of the following statements is MOST ACCURATE about the U.S. Foreign Corrupt Practices Act (FCPA) in relation to the Kenya Bribery Act 2016?

A. The first part criminalises the bribery of a foreign public official to obtain or retain business
B. The second part require that publicly traded companies to adopt policies, procedures, and internal controls to prevent bribery
C. The U.S. Foreign Corrupt Practices Act (FCPA) applications are not as broad as the Bribery Act 2016 and the UK Bribery Act
D. All the above (1 mark)

25. Which of the following is the BEST defence against a tax fraud charge if the tax payer can provide evidence?

A. Reliance on an auditors advise
B. No of tax liability
C. Unintentional failure to pay taxes
D. Reliance on a tax expert (1 mark)

26. Which of the following is a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

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 (1 mark)

27. Which of the following is an offence under the Proceeds of Crime and Anti-Money Laundering (POCAMLA)?

A. Money laundering
B. Failure to report suspicion regarding proceeds of crime
C. Financial promotion of an offence
D. All the above (1 mark)

28. Which of the following is a recommendation that the OECD made to their member countries on combating bribery in international business in relation to bribery of foreign public officials?

A. To enhance criminal, civil, and administrative laws
B. To enhance banking and accounting requirements and practice
C. To enhance tax systems and regulations
D. All the above (1 mark)

29. Which of the following statements is NOT true about official and commercial bribery?

A. Official bribery refers to the corruption of a public official to induce an official act of government.
B. Bribery Payments to public officials can be prosecuted as criminal offences, and the penalties are severe
C. Kenya Bribery Act 2016 and US Foreign Corrupt Practice Act do not prohibit commercial bribery
D. US anti-bribery Act does not prohibit facilitation fees (1 mark)

30. 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 (1 mark)

31. Under the Bribery ACT 2016, which of the following does NOT constitute a bribe?

A. Loan
B. Interest in a property
C. Reward or gift
D. None of the above (1 mark)

32. Which of the following statements is NOT true about embezzlement?

A. The prosecution must prove that perpetrator had a fiduciary relationship 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 (1 mark)

33. Which of the statements is 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 in court
B. A person can be found guilty of making a false statement even if the false statement was unintentional
C. A person can be found guilty of making a false statement even if the government did not suffer a loss
D. A person can be found guilty of making a false statement only if the statement is made directly to a governmental department or agency (1 mark)

34. Which of the following statements is TRUE with regard to Computer Misuse and Cybercrime?

A. Unauthorised access is an offence 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 by gaining unauthorised access is another offence in addition to the unauthorised access
D. All the above (1 mark)

35. Which of the following statements is correct in regard to bid rigging?

A. Bid rigging is a type of a corruption offence that is perpetrated by 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. All the above (1 mark)

36. A person commits a securities market manipulation if they enter into one or more transactions, which causes which of the following effects?

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 by the same company or a related company, or such other listed securities
B. Reduce, or are likely to reduce, the price with the intention of inducing another person to sell or to refrain from purchasing, securities issued by the same company or a related company, or such other listed securities; or
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 by the same company or by a related company, or such other listed securities
D. All the above (1 mark)

37. Which of the following statements about securities laws and regulations is 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. None of the above (1 mark)

38. 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 (1 mark)

39. 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 something of value
B. The defendant acted with corrupt intent
C. The government suffered damages as a result
D. None of the above (1 mark)

40. Under the Bribery Act 2016 which of the following is a relevant function or activity.

A. Function of a public nature
B. Any function carried out by a State officer or public officer, pursuant to his or her duties,
C. Any activity performed by or on behalf of a body of persons whether corporate or otherwise
D. All the above (1 mark)

41. Which of the following statements is NOT correct 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 (1 mark)

42. 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 by 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. This would be in addition to the protection under the Witness Protection Act (1 mark)

43. The Bribery Act imposes heavy penalties for bribery-related offenses. Which of the following is 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 (five times the amount of the benefit and/or loss)
D. All the above (1 mark)

44. The Bribery Act imposes heavy penalties for bribery-related offenses, which of the following statements 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
C. Being barred from holding public office but penalty does not apply to a director or partner in Kenya
D. Disqualification from an elective person and disqualification from serving as a director or partner in Kenya (1 mark)

45. Which of the following statements is TRUE 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 an agreement to commit an illegal act
D. All of the above (1 mark)

46. Generally, which of the following statements is CORRECT in regard to criminal tax liability?

A. The taxpayer can claim that he/she relied on an attorney or a tax expert
B. The taxpayer can claim that they engaged in proper tax avoidance and not schemes designed to avoid tax
C. The taxpayer can claim that evasion or avoidance was not wilful
D. All of the above (1 mark)

47. Which one of the following is NOT ACCURATE in relation to objects of the 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 (1 mark)

48. 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, by 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 (1 mark)

49. Which of the following is NOT correct about unauthorised access by 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 (1 mark)

50. 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 by 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 (1 mark)

51. 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 by a person with authorised or unauthorised access
B. Unauthorised interference can only be committed by a person with authorised or unauthorised access
C. Unauthorised interference can be committed by a person with unauthorised access
D. All the above (1 mark)

52. Which of the following is NOT TRUE about the U.S. Foreign Corrupt Practices Act (FCPA)?

A. The FCPA prohibits bribes to foreign officials and also to directors of private entities
B. It requires publicly traded companies subject to the FCPA’s jurisdiction to keep accurate books and records and adopt internal controls to prevent improper use of corporate funds
C. It does not prohibit facilitation fees
D. All the above are not correct (1 mark)

53. Which of the following statements about the United Nations Convention Against Corruption (UN Convention) is CORRECT?

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. Member states must criminalize acts of corruption committed within their territories or by their nationals
D. All of the above (1 mark)

54. If a public officer took and converted public funds which is in his possession legally, which of the following BEST describes the offense committed under the Anti-corruption and Economic Crimes Act.

A. Corruption
B. Economic crime
C. Fraud
D. Embezzlement (1 mark)

55. Which of the following statements is TRUE in regard to the offence of conspiracy?

A. The government must prove that the defendant knew all the details or objectives of the conspiracy
B. The government must prove that all the defendant knew all the participant of the conspiracy
C. The government must prove that at every conspirator committed at one direct action for the furtherance of the offence
D. None of the above (1 mark)

56. Richard, a computer programmer, works in an office environment with cubicles. While on his way back from the restroom, Richard notices that Alice, a cashier, left her cash drawer unlocked. Richard steals fifty thousand from the drawer and walks away. During an internal investigation, Richard admitted that he took the money Which of the following BEST describe the offence committed by Richard?

A. Embezzlement
B. Theft
C. Fraud
D. All the above (1 mark)

57. Which of the following is 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 that he had a duty to disclose
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 (1 mark)

58. 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. An agent of a public body who knowingly acquires or holds, directly or indirectly, a private interest in any contract, agreement or investment emanating from or connected with the public body is not guilty of an offence, if the interest is disclosed (1 mark)

59. The Tax Procedure Act 2015, criminalized the following action(s).

A. Schemes designed to Tax avoidance
B. Tax evasion
C. Fraudulent claims
D. All the above (1 mark)

60. Which of the following statements 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 (1 mark)

61. 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 by 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 (1 mark)

62. Robert is on the boards of two companies that compete in the urban road construction. Robert does not disclose this conflict, and he does not step down from the board of either company. Which of the following offence did Robert commit?

A. Corruption
B. Breach of trust
C. Conflict of interest
D. None of the above (1 mark)

63. The OECD Recommendation on Combating Bribery in International Business (Recommendation) focuses on the “supply side” of bribery (the offering side of the bribery bargain), but not the “demand side” (the solicitation and receipt of bribes).

A) True
B) False (1 mark)

64. 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. (1 mark)

65. 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, by 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 (1 mark)

66. Which of the following is NOT CORRECT about unauthorized access by 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 unauthorized 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 (1 mark)

67. 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 by 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 (1 mark)

68. 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 by a person with authorised or unauthorised access
B. Unauthorised interference can only be committed by a person with authorised access
C. Unauthorised interference can be committed by a person with unauthorised access
D. All the above (1 mark)

69. Which of the following statements is CORRECT in regard to the Financial Action Task Force and Anti-money laundering efforts?

A. The Financial Action Task Force (FATF) is an intergovernmental body 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 (1 mark)

70. Basically, 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. Offense of receiving, soliciting, giving or offering of any benefit, under the Anti-Corruption and Economic Crimes Act is type of a strict liability
B. “It shall not be 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 not be a defense 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 (1 mark)

71. The Ethics and Anti-Corruption Commission (EACC) cannot enter into a settlement with any person against whom the Commission has already brought an application in court. The above statement is:

A) True
B) False

72. 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 a `
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 (1 mark)

73. Claude is a payroll accountant at XYZ state corporation. In the cause of his duties of preparing the payroll, he enters ghost employees into the payroll. The ghost employees were paid for a period of two years before the fraud was discovered causing the corporation a financial loss of approximately 250 million shillings. Which of the following BEST describes the offenses committed?

A. Computer forgery and Deceiving Principal, under the Computer Misuse and Cybercrime and the Anti-
Corruption and Economic Crimes Act respectively                                                                                                                                                       B. Corruption and Cybercrime
C. Economic Crime and Cybercrime
D. Asset Misappropriation (1 mark)

74. Jean is a Principal accountant at ABC. Jean is responsible for authorizing creditors’ payments. In collusion with the procurement manager, they agreed that Jean authorize 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 BEST describes the perpetrators ‘offences?

A. The principal accountant, if proved, will be guilty of conspiracy, computer fraud, and failure to protect government property or revenue
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 (1 mark)

75. Which of the following statements 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 real evidence of corruption
D. All the above (1 mark)

76. 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 (1 mark)

77. Which of the following documents has made recommendations against international anti- money laundering

A. International Organisation for Economic Development (OECD)
B. The United Nations Convention
C. The Financial Action Task Force (FATF)
D. All the above (1 mark)

78. Money laundering has three stages. In which of the following stage is much easier to detect money laundering?

A. Layering
B. Integration
C. Placement
D. All the above (1 mark)

79. Though Kenya is not yet a member of the Financial Action Task Force, reporting institutions have benchmarked with FATF Recommendations in developing their anti-money laundering programs. Which of the following should financial institutions implement as part of their anti-money laundering programs?

A. Employee background checks procedures
B. An ongoing employee training program
C. A designated compliance officer
D. All of the above (1 mark)

80. Which of the following statements is ACCURATE under the POCAMLA

A. This act applies to accountants preparing or carrying out transactions for 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. All the above (1 mark)

81. Which of the following statements 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 misappropriated 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 (1 mark)

82. Which of the following statements is CORRECT in regard to forgery?

A. A fraudulent invoice presented to a procuring entity is a forgery committed by the contractor or vendor
B. Procuring another person’s signature or is forgery
C. Offences related to forgery are stipulated under the Kenya Law Penal Code and the Computer Misuse and Cybercrime
D. All the above (1 mark)

83. Money launders use various methods to launder money. 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 by paying someone at the direction of Broker B. Which of the following best describes this payment scheme?

A. Back-to–back loan
B. Pre-paid access
C. Alternative remittance system
D. Money services business (1 mark)

84. Any institution dealing with money can be ideal for laundering money. Which of the following financial institutions would provide a conducive environment for laundering money?

A. A currency exchange bureau
B. A prepaid access card provider
C. A SACCO
D. All the above (1 mark)

85. Economic crime and corruption offences are closely connected. Economic crimes are those crimes which are fraudulent and unlawful. Which of the following is CORRECT in regard to Economic crimes under the Anti- Corruption and Economic Crimes?

A. Payments for goods not supplied
B. 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
C. Failure to pay taxes or levies payable to public body
D. All the above (1 mark)

86. Which of the following Kenya laws define soliciting or receiving an inducement as an offense?

A. Bribery Act 2016
B. Anti-corruption and Economic Crimes Act
C. Public Finance Management Act
D. All the above (1 mark)

87. Which of the following offense is accompanied by other offenses?

A. Conflict of interest
B. Conspiracy
C. Abuse of office
D. All the above (1 mark)

88. 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, friend and business associates of corporate officers, directors and employees trade their corporate securities based on insider information
C. Employees of law firms, accounting firms or stock brokers trade their securities based on insider information
D. All the above (1 mark)

89. Which of the following BEST describe government 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. None of the above (1 mark)

90. Which of the following statements is CORRECT in regard to sactions or penalties for violating the duty to preserve documents relevant to anticipated or ongoing litigation. Sanctions can arise only from intentional acts, not from negligent acts.

A) True
B) False (1 mark)

91. Which of the following statements in relation to false statement to government is NOT 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 must have suffered loss
D. All the above (1 mark)

92. Under the law of evidence in adversarial jurisdictions, the appellate court reviews issues of the law but not does not address issues of facts

A) True
B) False (1 mark)

93. Which of the following is considered obstruction of justice?

A. Influencing a witness with bribes
B. Contacting a government investigator
C. Subpoenaing a government witness
D. Showing disrespect to a judge (1 mark)

94. Which of the following statements about the UK Bribery Act is NOT correct?

A. The UK Bribery Act has broader application than the FCPA because, unlike the FCPA, it makes commercial bribery a crime.
B. Unlike the FCPA, the UK Bribery Act does not contain an explicit exception for facilitating payments
C. The UK Bribery Act exercises jurisdiction over all individuals and corporate entities for acts of corruption when any part of the offences occurs in the UK.
D. If an organisation’s anti-corruption programme complies with the FCPA, it will be adequate for the purpose of complying with the UK Bribery Act. (1 mark)

95. Which of the following is TRUE in regard to computer forgery?

A. Computer forgery involves 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 purposes as if it were authentic
B. Computer forgery is a crime under the Computer Misuse and Cybercrime
C. Computer forgery has underlying crime facilitated by the forgery
D. All the Above (1 mark)

96. Which of the following is TRUE in regard to computer fraud?

A. A person who, with fraudulent or dishonest intent unlawfully gains or occasions unlawful loss to another person
B. Obtains an economic benefit for oneself or for another person, through any of the means described in subsection
C. In addition to computer misuse and cybercrime offence there is usually an underlying crime facilitated by computer fraud
D. All the above (1 mark)

97. XYZ 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 XYZ anti money laundering program?

A. The designation of a compliance officer at the management level
B. Reporting of all foreign bank transfers to the government
C. A mandatory waiting period before cash deposits can be transferred
D. All the above (1 mark)

98. Real Red Corporation filed a bankruptcy proceeding in which all of its assets will be sold and the proceeds will be distributed to creditors. Under the World Bank Principles and Guidelines for Effective Insolvency and Creditor Rights Systems, which of the following parties is an appropriate option for managing Real Red estate in the proceedings?

A. Acme’s directors
B. Acme’s creditors
C. An independent insolvency representative
D. All of the above (1 mark)

99. In a planned bust-out scheme, which of the following types of assets does the fraudster typically purchase on credit and then sells prior to closing the business?

A. Business insurance policies
B. Legal or accounting services
C. Inventory or goods
D. Real estate (1 mark)

100. 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 ensuring that markets are fair, efficient and transparent
B. Enhancing the financial system’s growth
C. Harmonizing securities laws and standards across the global
D. Eliminating mark risk (1 mark)

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