LAW RELATED TO FRAUD APRIL 2023 PAST PAPER

WEDNESDAY: 26 April 2023. Morning Paper. Time Allowed: 3 hours.

Answer ALL questions by 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. Which of the following statements in regard to the law against fraudulent financial reporting in government entities in Kenya is NOT accurate?

A. An accounting officer of a government entity would be liable for furnishing false financial statements and can be charged under the Penal Code Cap 63 section 331.
B. An accountant will be liable for making any false entry in any such book, document or account that would result in fraudulent financial reporting. If convicted shall be liable to imprisonment for seven years
C. An accounting officer convicted of fraudulent financial reporting under the penal code shall be liable to a fine not exceeding one million shillings or to imprisonment for a term not exceeding ten years or both
D. An accounting officer cannot be liable for fraudulent financial reporting under the penal code if they were not aware of the false accounting entries and financial statements prepared by the accountants

2. Which of the following Kenyan law is NOT one of the laws that are violated in relation to fraudulent financial reporting in the Government and private entities.

A. Penal Code
B. Computer Misuse and Cybercrime Act, 2018
C. Capital Markets Act
D. None of the above

3. Which of the following laws have NOT defined corrupt acts as an offence?

A. Anti-corruption and Economics Crimes Act 2003
B. Public Finance Management Act 2012
C. Public Procurement and Assets Disposal Act 2015
D. None of the above

4. The Public Procurement and Assets Disposal Act has defined fraudulent act as an offence under section 176(i), misrepresentation on material facts is a type of a fraudulent act which of the following is NOT a legal element related to misrepresentation of material facts?

A. Misrepresentation of material facts
B. The person making the representation knows that the statement is false
C. The user of the material statement relies on the misrepresentation
D. Failure to disclose material facts

5. Under the Public Finance Management Act 2012, Public officers are personally liable for losses incurred by the National and County government. Which of the following statements is NOT accurate in relation to above law?

A. The accounting officer will be personally liable for losses incurred in their ministry or government entity,
even if he/she was not directly involved in action that led to the losses
B. The accounting officer will be personally liable for losses incurred in their ministry or government entity, if they engage in a fraudulent act
C. The accounting officer will be personally liable for losses incurred in their ministry or government entity if they engage in a corrupt act
D. None of the above

6. Which of the following statements is NOT accurate in regard to penalties 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 where 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 and the initial fine
D. None of the above

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

A. Under the Bribery Act, confiscation of property would be in addition to penalties of a fine and
imprisonment
B. Under the Bribery Act, if a person is charged with bribery, he/she will be disqualified from serving as a director in addition to penalties of a fine and imprisonment
C. Under the Bribery Act, being barred from holding public office would be in addition to penalties of a fine and imprisonment
D. None of the above

8. Which of the following is NOT a type of a corrupt act under the Public Procurement and Assets Disposal Act 2015?

A. Misrepresentation of material facts related to a procurement tender
B. Knowingly withholds the notification of a ward to a successful tenderer
C. Unduly influence or exert pressure on any member of an opening committee or any other committee
established under this act
D. All the above

9. Which of the following is NOT correct in regard to the Bribery Act 2016?

A. The Bribery Act 2016 have wide implications for client in or operating into Kenya from abroad.
B. Bribery attracts hefty penalties; therefore, the implications should be factored into procurement and finance 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 statutes on bribery
D. All the above

10. Which of the following statements is ACCURATE in regard to liability for misappropriation of assets by employees where management is not involved in fraudulent activities?

A. Executives and directors cannot be held liable for any offence related to employees’ misappropriation if they were not involved
B. Any employee, entrusted with the custody and administration of the organisation assets can be charged for breach of trust if found guilty of misappropriation
C. Offences of breach of trust related to misappropriation of organisation’s assets can be brought to court as criminal offences against the executives
D. None of the above

11. Which of the following laws have NOT defined misrepresentation of material facts as an offence?

A. Capital Markets Authority Act
B. Public Finance Management Act
C. POCAMLA
D. None of the above

12. Which of the following law has NOT defined forgery as an offence?

A. The Penal Code
B. Computer Misuse and Cybercrime Act, 2018
C. The Bribery Act
D. All the above

13. Any institution dealing with money can be ideal for laundering money, which of the following institution would NOT provide a conducive environment for laundering money?

A. Casinos
B. Restaurants
C. Real Estate
D. None of the above

14. 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. Which of the following laws provides heavier penalties than the Anti-Corruption and Economic Crimes Act, for computer related offences?

A. Penal Code
B. Computer Misuse and Cybercrime Act
C. Public Finance Management Act
D. All the above

15. Which of the following Kenyan law does NOT 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. None of the above

16. Which of the following offenses NOT is accompanied by other offenses?

A. Computer forgery
B. Conspiracy
C. Forgery
D. None of the above

17. 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 public
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. None of the above

18. Which of the following is NOT a requirement 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 not a requirement for government officers to obtain search warrant if the offences are committed in the presence of a police officer

19. Which of the following is NOT an obstruction offence?

A. Hindering an officer to perform their duty under any law
B. Threatening a witness
C. Destroying documents relevant to the facts in issue
D. None of the above

20. 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 involve unauthorized access
C. Computer forgery is an offence on its own in addition to the underlying crime facilitated by the forgery
D. All the Above

21. XYZ Bank has an anti-money laundering program that has put in place internal controls, procedures to prevent money laundering and a regular independent audit function to evaluate the effectiveness of the bank’s anti money laundering program. Which of the following should be included in the anti-money laundering program?

A. Money laundering awareness training for employees
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

22. Banana Corporation filed bankruptcy proceedings 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 an appropriate option for managing Banana’s estate in the proceedings?

A. Apple Corporation directors
B. Apple creditors
C. Apple Corporation’s bankers
D. None the above

23. 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. Property
B. Legal or accounting services
C. Inventory
D. None of the above

24. Which of the following is ACCURATE 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 accountable to the IOSCO
B. Enhancing the financial system’s growth
C. Harmonising securities laws and standards across the global
D. None of the above

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

A. The Bribery Act, 2016 is modelled to the UK Anti Bribery Act
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. None of the above

26. Which of the following statements is ACCURATE in relation to the laws 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 does not impose express duties on private entities and individuals to prevent and
report incidents of bribery
C. The Bribery Act 2016 has not made it a requirement for private entities to have in place procedures for
the prevention of bribery
D. None of the above

27. Which one of the following acts is NOT criminalised by the Bribery Act 2016?

A. A Kenya company promises to pay a foreign official $ 100,000 as a facilitation fee
B. A Kenya company transfers $100,000 to a foreign official to influence the official to award it a public
construction contract
C. A Kenyan company pay a government official Kshs I00,000 as facilitation fees t
D. None of the above

28. Which one of the following fraudulent activities does the Tax Procedures Act criminalise?

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

29. Which of the following statements is ACCURATE in regard to false or misleading statements under the Tax Procedures 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. None of the above

30. Under the Anti-corruption and Economic Crimes Act, which of the following statements is NOT accurate?

A. Misappropriation of public funds is defined as a corruption offence
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 the above

31. Claude is a public officer of XYZ Ministry. Claude fraudulently and unlawfully used the Government payment system to make payments for services that were not offered. Which of the following Kenya laws was NOT violated by Claude’s conduct?

A. Anti- Corruption and Economic Crimes Act
B. Computer Misuse and Cybercrime Act
C. Public Finance Management Act
D. None of the above

32. Which of the following statements is 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
discloses the interest the agent will have committed an offence.
B. 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 constitute a conflict of interest
C. If an agent of a public body knowingly acquires or holds, directly or indirectly, private interest in any
contract agreement or investment, will be guilty of an offence
D. All the above

33. 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

34. 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. Misappropriation of public funds
D. None of the above

35. 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 offences under the Anti-corruption and Economic Crimes Act BEST describes the offence?

A. Abuse of office
B. Conflict of interest
C. Corruption
D. Deceiving the principal

36. Which of the following statements is NOT accurate 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 by a person directly or through a third party.

37. Which of the following statements is NOT accurate about the U.S. Foreign Corrupt Practices Act (FCPA)?

A. The first part criminalises the bribery of foreign public official officers 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 as broad as the Bribery Act 2016 and the UK Bribery Act
D. A company operating in Kenya and trading securities in the US is subject to US Foreign Corrupt Act

38. Which of the following is NOT a proper defence against a tax fraud charge?

A. No tax liability
B. Unintentional failure to pay taxes
C. Reliance on an accountant
D. None of the above

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

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. None of the above

40. Which of the following is NOT an offence under the Proceeds of Crime and Anti-Money laundering (POCAMLA)?

A. Misrepresentation
B. Tipping off
C. Malicious reporting
D. None of the above

41. OECD urged their member countries to combat bribery in international business, which of the following is NOT one of the recommendations that they made?

A. To enhance criminal and civil laws
B. To enhance banking and accounting requirements and practice
C. To enhance tax systems and regulations
D. None of the above

42. Which of the following statements is NOT accurate in regard to official and commercial bribery under the Bribery Act 2016?

A. Bribery Act 2016 makes commercial bribery an offence
B. Bribery Act 2016 makes official bribery an offence
C. Bribery Act 2016 does not stipulate commercial bribery as an offence
D. None of the above

43. Which of the following is NOT 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. None of the above

44. Under the Bribery Act 2016, which of the following does NOT constitute a bribe?

A. Interest in a business enterprise
B. Liquidation of any loan
C. Discharge of any obligation or other liability
D. None of the above

45. Which of the statements below 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 only if the government suffered 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

46. Which of the following statements is NOT accurate 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 by gaining unauthorized access will be in addition to the
unauthorised access
D. None of the above

47. Which of the following statements 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 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. Refraining from submitting a tender, proposal, quotation or bid

48. 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 by the same company or a related company, or
such other listed securities;
B. Stabilise, or are likely to stabilize, 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
C. False trading and market rigging
D. None of the above

49. Which of the following statements about securities laws and regulations is CORRECT?

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

50. 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

51. 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 an inducement or a reward
B. The defendant engaged in a with corrupt act
C. The recipient is a government official
D. None of the above

52. 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 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. None of the above

53. 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 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.
D. None of the above

54. 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

55. The Bribery Act imposes heavy penalties for bribery-related offenses. Which of the following is NOT accurate 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 (five) times the amount of the benefit and/or loss)
D. None of the above

56. The Bribery Act imposes heavy penalties for bribery-related offences, 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 of bribery
C. Being barred from holding public office or being a director or partner in Kenya
D. Disqualification from an elective position but not from serving as a director or partner in Kenya

57. 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. None of the above

58. Which one of the following is NOT accurate in relation to objects of the Computer Misuse and Cybercrime?

A. Prevent the unlawful use of computer systems
B. Facilitate for prevention, investigation, prosecution and punishment of cybercrimes
C. Facilitate international co-operation on matters covered under this Act
D. None of the above

59. Which of the following is NOT accurate in regard to unauthorised access by 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 unauthorized access is not directed at any particular program or data program or data of any kind
C. If the unauthorized access is not directed at any program or data held in any particular computer system, the action will still be considered as unauthorised access
D. None of the above

60. Which of the following statements is NOT accurate 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 unauthorized 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 unauthorized access will not be an additional offence

61. 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 be committed by a person with authorised access
B. Unauthorised interference can be committed by a person with unauthorised access
C. Unauthorised interference is an offence on its own and can result to another crime like theft of identity
D. None of the above

62. 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 a must that member states criminalise acts of corruption committed within their territories or by their nationals
D. None of the above

63. If an accounting officer authorized payments for goods not supplied, which of the following laws would provide the heaviest penalty as punish for the economic crime and also to act as a deterrence to potential offenders?

A. Finance Act
B. Anti-Corruption and Economic Crimes Act
C. Public Finance Management Act
D. None of the above

64. 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 acted with a corrupt intent
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

65. Which of the following statements is NOT accurate in regard to conflict-of-interest 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 authorize its agent to vote or participate in the proceedings of the public body and the voting or participation of an agent as so authorised

66. Which of the following is NOT accurate Under the Tax Procedures Act 2015, in regard to criminalising tax related actions?

A. The law criminalises schemes designed for tax avoidance
B. The law criminalises tax evasion
C. The law does criminalise fraudulent claims
D. None of the above

67. 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

68. Ahmed is a board member of two companies that compete in the high road construction. Ahmed, failed to disclose this conflict. Which of the following BEST describes the offence that Ahmed committed?

A. Corruption
B. Breach of trust
C. Economic crime
D. None of the above

69. Which of the following is ACCURATE in regard to OECD recommendations on Combating Bribery in International Business?

A. OECD focuses on the “the bribe payer”
B. OECD focuses on the “demand side”
C. OECD focuses on both the “supply side” and “demand side”
D. None of the above

70. 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 international cooperation on matters covered under this Act                                                        D. None of the above

71. Which of the following is NOT accurate about unauthorized 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. None of the above

72. Which of the following statements is NOT accurate in regard to unauthorized 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 unauthorized 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. None of the above

73. Which of the following statements is NOT accurate in regard 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

74. Which of the following statement is NOT accurate in regard to the Financial Action Task Force and Anti-money laundering efforts?

A. The Financial Action Task Force (FATF) is an international policy making body
B. The FATF recommendations are standards but not law
C. The FATF’s Recommendations, revised in 2012, created the most comprehensive standard and a basic
framework that its members should have.
D. None of the above

75. 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 Bribery Act, which of the following statements is ACCURATE?

A. An offence of receiving, soliciting, giving or offering of any benefit, under the Anti-Corruption and
Economic Crimes Act require prove of intent just like any other criminal offence
B. It is a defence 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. None of the above

76. John is a revenue accountant at XYZ state corporation. In the course of his duties he entered fictitious sales invoices into the system. Which of the following BEST describes the offenses committed by John?

A. Misrepresentation of material facts
B. Corruption and Cybercrime
C. Economic Crime and Cybercrime
D. None of the above

77. Felistus is a principal accountant at XYZ government agency. Felistus is responsible for authorizing payments. In collusion with the procurement manager, they agreed that Felistus entered fraudulent invoices into the system and authorised payments. Which of the following is NOT accurate in regard to the offence committed by Felistus and the vendors?

A. The vendors, if proved, will be guilty of conspiracy, economic crime under the protection of government
property and revenue, for fraudulently acquiring public property
B. Felistus, if proved, will be guilty of corruption offences and economic crime, conspiracy
C. Felistus, if proved, will be guilty of computer forgery
D. None of the above

78. Which of the following statements is NOT accurate in regard to evidence of corruption under the Anti-corruption and Economic Crimes Act?

A. Unexplained assets 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. None of the above

79. Which of the following statements is NOT accurate in regard to corruption offences?

A. Corruption offences usually is accompanied by conspiracy offence
B. An attempt to commit a corruption offence, where the offence is not accomplished is an offence under the Anti-Corruption and Economics Crime Act
C. Abuse of office is a type of corruption offence, which is in addition to an underlying offence
D. None of the above

80. Which of the following organizations is NOT established under the POCAMLA?

A. Central Bank of Kenya
B. The Asset Recovery Agency
C. The Ethics and Anti-Corruption Commission
D. None of the above

81. Money laundering has three stages. In which of the following stages is it easier to detect money laundering?

A. Layering
B. Integration
C. Detection
D. None of the above

82. Which of the following statements is NOT accurate under the POCAMLA?

A. This Act applies to accountants or advocates preparing or carrying out transactions on behalf of their
clients
B. This Act puts 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 puts an obligation on the reporting institutions to establish and maintain customers record
D. None of the above

83. Which of the following is NOT a purpose of the Public Finance Management Act?

A. Provide for the effective management of public finances by 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

84. 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. If an accounting officer fails to ensure that the resources of the respective entity are used in a way that is lawful and authorised, they will not be liable for a legal offence but rather internal disciplinary action
D. Ensure that all expenditure made by the entity are authorised and lawful

85. Which of the following statements is NOT accurate 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. All contracts entered into as long as there was prior planning are lawful
D. None of the above

86. Which of the following is CORRECT in regard to requirement for a search warrant, when conducting an investigation in jurisdictions with laws granting people the right to be free from unreasonable search and seizure?

A. Both government officers and private investigators must obtain search warrants
B. Government officers are required to obtain search warrants
C. Government officers must always obtain search warrants
D. None of the above

87. Which of the following statements under the Bribery Act 2016 is NOT accurate?

A. Under the Bribery Act, all entities private and public are now required to put in place equal procedures for the prevention of bribery and corruption
B. Under the Bribery Act, both public and 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 director or a senior officer
D. Failure of private entities to put in place such procedures is an additional offense on the part of the entity

88. Which of the following statement is ACCURATE, under the POCAMLA Act in regard to financial institutions?

A. Under the POCAMLA Act, financial institution includes designated non-financial institutions
B. Under the POCAMLA act, designated non-financial institutions do have reporting obligations
C. Under the POCAMLA act, financial institution does not include designated non-financial institutions
D. All the above

89. Which one of the following statements related to bribery activities is NOT 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 unknowingly receives a bribe is not guilty of a bribery offence
D. All the above

90. Which of the following is NOT accurate in regard to foreign official as defined under the Bribery Act 2016?

A. A person holding a legislative, administrative or judicial office of a foreign country, whether appointed or elected
B. Any person exercising a public function for a foreign country, including for a public agency or public
enterprise
C. An international civil servant or any person who is authorised by such an organisation to act on behalf of that organisation
D. Any person exercising a private function for a foreign country, including for a public agency or public
enterprise

91. Which of the following statements in relation to the Anti-Corruption and Economic Crimes Act is NOT accurate?

A. A person who attempts to commit an offence involving corruption or an economic crime is not guilty of a criminal offence if the commission of the offence is completed
B. For the purposes of this section, a person attempts to commit an offence of corruption or an economic crime if the person, with the intention of committing the offence, does or omits to do something designed to its fulfilment but does not fulfil the intention to such an extent as to commit the offence.
C. A person who conspires with another to commit an offence of corruption or economic crimes is guilty of an offence.
D. A person who incites another to do any act or make any omission of such a nature that, if that act were done or the omission were made, an offence of corruption or an economic crime would thereby be committed, is guilty of an offence

92. Which of the following is NOT a bid rigging offence?

A. Refraining from submitting a tender, proposal, quotation or bid because of an inducement or reward
B. withdrawing or changing a tender, proposal, quotation or bid because of an inducement or reward
C. submitting a tender, proposal, quotation or bid with a specified price or with any specified inclusions or exclusions because of an inducement or reward
D. Refraining from submitting a tender, proposal or quotation

93. Which of the following statements is ACCURATE in regard to prosecution of embezzlement?

A. The prosecution must prove that perpetrator was in a position of trust with the principal when he/she
embezzled the funds
B. The prosecution must prove that the perpetrator was not entrusted with the money or property
C. The prosecution is not required to prove that the perpetrator’s intent to embezzle the money or property
D. None of the above

94. In a prosecution of an offence that involves a benefit that is an inducement or reward for doing an act or making an omission, which of the following is NOT accurate in regard to defence under the Anti-Corruption and Economic Crimes Act?

A. That the act or omission was not within a person’s power
B. Person did not intend to do the act or make the omission
C. That the act or omission did not occur
D. It can only be an offence if the act or omission occurred

95. Which of the following is NOT accurate in regard to legal element of perjury?

A. The defendant made a false statement
B. The defendant made the false statement while under oath
C. The false statement was material or relevant to the proceeding
D. The defendant can only be found guilty of perjury for false statement made in court under oath

96. Which of the following Kenyan Laws has NOT defined obstruction or hindering an authorised person in performing their duty under any law as an offence?

A. Capital Markets Act
B. POCAMLA Act
C. Public Procurement and Assets Disposal Act
D. Bribery Act 2016

97. Which of the following is NOT legal element of false claims to the Government?

A. Making a false claim even in the claim was not made directly to government department or agency.
B. Making a false statement or claim even if the government was not deceived by the falsity
C. Making a false statement or claim even if the government did not rely on the falsity
D. Making a false statement or claim and the government suffered loss in reliance of the falsity

98. Which of the following statement is NOT correct in regard to professional negligence?

A. Cases of professional negligence are usually civil actions
B. Cases of professional negligence are hard to prove
C. Failure to exercise due care in the performance of a duty by a professional is an example of professional negligence
D. A clerk or a servant can be liable for professional negligence for failure to balance the books of account

99. Which of the following statement is NOT accurate in regard to the private and public entities obligation to put procedures in place to prevent bribery

A. The Bribery Act,2016 has criminalised failure to put procedures in place to prevent bribery
B. Failure to put measures in place will be presumed as consent by the entity’s senior officer not to prevent bribery
C. EACC has not yet published guidelines to assist both private and public to put in place to prevent bribery
D. EACC has published guidelines to assist both private and public to put in place to prevent bribery

100. The Tax Procedures Act does NOT criminalise 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. None of the above

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