GT FAFI Procurement

What is procurement fraud?

• A lawful method to streamline an organization's procurement process.

• A strategic approach to improve supplier efficiency.

• A deliberate deception intended to influence any stage of the procure-to-pay lifecycle for financial gain.

• An effective negotiation technique for favorable pricing.

Which of the following is an example of pre-contract procurement fraud?

• Encouraging competitive bidding.
• Transparently awarding contracts.
• Falsifying statements to justify a sole-source procurement situation.
• Ensuring supplier quality and efficiency.

Post-contract procurement fraud can include:

• Defective material substitution.
• Competitive bidding.
• Accurate record-keeping.
• Vendor selection based on merit.

Which of the following is a red flag for collusion among bidders?

• A discernible rotation pattern among winning bidders.
• All qualified contractors participate in the bidding process.
• Bids meet the essential requirements specified in the solicitation documents.
• The bidding pool consists of diverse contractors.

What constitutes consumer fraud?

• Legal business practices causing no financial loss.
• Deceptive business practices leading to consumer financial or other losses.
• Transparent online transactions.
• Legitimate prize or free gift offers.

What is a Ponzi scheme characterized by?

• A legitimate investment strategy with high returns.
• An ethical way of generating returns for investors.
• Generating returns for older investors by acquiring new investors.
• A transparent financial model with clear asset allocation.

Asset misappropriation fraud involves:

• The ethical use of one’s occupation for organization enrichment.
• The misuse or misapplication of the employing organization's resources for personal enrichment.
• Transparent financial reporting.
• Investing in employee training for fraud prevention.