LAW RELATED TO FRAUD AUGUST 2023 PAST PAPER

WEDNESDAY: 23 August 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 is NOT accurate in regard to the Bribery Act 2016?

A. Before the Bribery Act 2016 the Anti- corruption and Economic Crimes Act had also imposed significant anti- bribery responsibilities on the private sector
B. The Bribery Act 2016 imposes express duties on private entities and individuals to prevent and report
incidents of bribery
C. The Bribery Act 2016 has 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)

2. Which of the following statements is ACCURATE in regard to why other jurisdictions out of the U.S should be familiar with the U.S. Foreign Corrupt Practices Act’s (FCPA)?

A. Jurisdictions outside U.S need to understand the U.S. Foreign Corrupt Practices Act’s (FCPA) because the law has extra territorial application
B. Jurisdictions, outside U.S need to understand the U.S. Foreign Corrupt Practices Act’s (FCPA) because the law has broader applications than other anti- bribery laws
C. Jurisdictions outside U.S need to understand the U.S. Foreign Corrupt Practices Act’s (FCPA) because
unlike the other anti- bribery laws, the law addresses bribery in the private sector
D. None of the above (1 mark)

3. Which of the following activities is NOT criminalised by the Tax Procedure Act?

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, 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. All the above (1 mark)

4. Which of the following statements is NOT accurate in regard to false or misleading statements under the Tax Procedure 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 intentionally omits from a statement made to an authorised officer any matter or thing without which the statement would be false or misleading in immaterial 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 (1 mark)

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

A. Misappropriation of public funds is defined a corruption offence
B. Failure to protect public property and revenue is defined as an economic crime
C. Fraud and embezzlement are defined as corruption offence
D. Abuse of office to confer an economic benefit is an economic crime (1 mark)

6. Jean, a tax payer who has no tax returns experience, completed tax documents for her new business. The information required was complex and therefore the returns were improperly completed. Which of the following statements is NOT accurate?

A. Jean will be liable for criminal penalties even if the government did not suffer loss, if the act was intentional
B. Jean will have tax liability even if she unintentionally completed the documents improperly
C. Jean will not have tax liability if she unintentionally completed the documents improperly
D. None of the above (1 mark)

7. Which of the following activities intended to enable bribery 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 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. None of the above (1 mark)

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

A. Under the Bribery Act, private and 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
B. Under the Bribery Act, directors of private entities can personally be held responsible for failure to put in place procedures for the prevention of bribery and corruption
C. Failure of private entities to put in place such procedures can only be held vicariously liable
D. None of the above (1 mark)

9. Which of the following is NOT a penalty under the Bribery Act 2016?

A. Imprisonment (maximum of ten years)
B. Imposition of a fine (not exceeding Sh.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) in addition to the initial fine of Sh.5,000,000
D. None of the above (1 mark)

10. 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, a person cannot be disqualified from serving as a director or partner of a private entity, 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 (1 mark)

11. Which of the following is NOT a type of fraudulent or corrupt procurement offence under the Public Procurement and Assets Disposal Act?

A. Misrepresentation of material facts related to a procurement process
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, and the awarding of contract beyond the prescribed period
D. None of the above (1 mark)

12. Which of the following is NOT accurate 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. Since penalties are hefty, the implications should be factored only in high risk areas like procurement
functions 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. None of the above (1 mark)

13. Bob is an agent of XYZ government agency. Bob makes a document to the principal indicating that the agency requires a computer system with a higher capacity to increase efficiency. Bob prepares the procurement documents and the procurement is authorised. The agency has utilised only fifty of the modules and the system is working efficiently according to the users. The procurement of the system cost the agency two billion Kenya shillings, which was not necessary. The agent received a benefit from the procurement. Under the Anti–Corruption and Economic Crimes Act, which of the following is NOT an offence in regard to the scenario above?

A. Bribery of agents
B. Conflict of interest
C. Abuse of office
D. Kickback (1 mark)

14. Allen is a public servant of XYZ Ministry. Allen fraudulently and unlawfully used the government payment system to make payments for goods that were not supplied. Which of the following, under the Anti-Corruption and Economic Crimes Act, is NOT an offence related to the above scenario?

A. Abuse of office
B. Failure to protect government property and revenue
C. Misappropriation of public funds
D. None of the above (1 mark)

15. Which of the following statements is NOT accurate in regard to conflicts of interest, under the Anti- Corruption and Economic Crimes Act?

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. 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
D. None of the above (1 mark)

16. 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. Upon the coming into force of this Act (POCAMLA), a reporting institution shall undertake customer due diligence on the existing customers
B. The POCAMLA does not make it an obligation for a reporting institution to undertake customer due
diligence on the existing customers
C. 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
D. None of the above (1 mark)

17. Which of the following acts would NOT constitute violations under the U.S. Foreign Corrupt Practices Act’s (FCPA) anti-bribery provisions?

A. To promise to pay a foreign official $100,000 to induce an award of a contract
B. A U.S company makes a payment of $100,000 to a foreign official to influence the official to award a
public contract
C. A German company that is publicly traded on the New York Stock Exchange transfers $230,000 to a foreign official to influence the official to award it a public construction contract.
D. None of the above (1 mark)

18. Which of the following statements in regard to the Kenya’s Bribery Act 2016, UK Bribery Act, and the US Foreign Corrupt Act is NOT accurate?

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)

19. Which of the following is an economic crime under the Anti-corruption and Economic Crimes Act?

A. Embezzlement or misappropriation of public funds
B. Fraud
C. Abuse of office
D. None of the above (1 mark)

20. 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. Conflict of interest
B. Corruption
C. Forgery
D. None of the above (1 mark)

21. Which of the following statements is ACCURATE in regard to giving an inducement or reward 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 does not commit an 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 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. None of the above (1 mark)

22. 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 a foreign public official to obtain or retain business
B. The second part requires 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. None of the above (1 mark)

23. Which of the following defences would remove tax liability against a tax payer?

A. Reliance on an auditors advise
B. Unintentional failure to pay taxes
C. Reliance on a tax expert
D. None of the above (1 mark)

24. Which of the following is a legal element, that is NOT a must to be shown, to prove a claim for fraudulent misrepresentation of material facts, in a criminal proceeding?

A. The misrepresentation was material
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)

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

A. Tipping off
B. Failure to report suspicion regarding proceeds of crime
C. Financial promotion of an offence
D. None of the above (1 mark)

26. Which of the following is NOT 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. To enhance only criminal and civil laws (1 mark)

27. Which of the following statements is NOT accurate about official and commercial bribery in Kenya and the U.S?

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

28. Under the Bribery Act 2016, which of the following is NOT a method of paying bribes?

A. Payment of credit cards by the vendor
B. Shareholding in a business
C. Loans guaranteed and paid by the vendor
D. None of the above (1 mark)

29. Which of the following statements is NOT accurate about prosecution of an embezzlement case?

A. The prosecution must prove that perpetrator was in a position of trust
B. The prosecution must prove that the perpetrator was entrusted with the money or property
C. The prosecution must prove that the perpetrator’s intent to embezzle the money or property
D. All the above (1 mark)

30. Which of the following 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 even if the false statement was unintentional
B. A person can be found guilty of making a false statement only if the government suffer a loss
C. A person can be found guilty of making a false statement only if the statement is made directly to a
governmental department or agency
D. None of the above (1 mark)

31. Which of the following statements is NOT accurate 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, the offence committed is an additional offence
C. The offence committed under any other law by gaining unauthorized access is another offence in addition
to the unauthorised access
D. None of the above (1 mark)

32. Which of the following statements is NOT accurate in regard to bid rigging under the Anti- Corruption and Economic Crimes Act?

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. None of the above (1 mark)

33. Which of the following statements in regard to the Kenya’s Bribery Act 2016 and UK Bribery Act, and is NOT accurate?

A. The Bribery Act 2016 and the UK Bribery Act have broader applications than the US Foreign Corrupt
Practice Act
B. Unlike the Bribery Act 2016, the UK Bribery Act criminalize payment of commercial bribery
C. Unlike the US Foreign Corrupt Practice Act, the Bribery Act 2016 and the UK Bribery Act criminalize
payment of facilitation fees
D. None of the above (1 mark)

34. Which of the following is NOT a type of corruption offence under the Anti-corruption and Economic Crimes Act?

A. Bid rigging
B. Bribery of agents
C. Abuse of office
D. Protection of public property and revenue (1 mark)

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 offence under the Anti-corruption and Economic Crimes Act, BEST describe the offence?

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

36. Which of the following statements is 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 even if the person’s performance of a relevant function is not improper
B. It shall 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
C. It shall matter whether the advantage is offered, promised or given by a person directly or through a third party
D. None of the above (1 mark)

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

A. The law applies to all traded companies even those operating outside U.S if they are trading their securities in the U.S
B. The second part require that publicly traded companies to adopt policies, procedures, and internal control to protect the company’s resources
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. None of the above (1 mark)

38. Which of the following statements in regard to allegations of tax is NOT accurate?

A. Tax liability survives a tax payer; therefore, the death of a tax payer is not a proper defence
B. No tax liability is the best defence against allegations of tax fraud liability
C. Reliance on a tax expert can properly be used as a defence against criminal penalties
D. None of the above (1 mark)

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 trial?

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)

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

A. Misrepresentation
B. Malicious reporting
C. Misuse of information
D. None of the above (1 mark)

41. 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. Trading shares based on inside information for their own benefit
C. Stabilize, 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
D. None of the above (1 mark)

42. Which of the following statements about securities laws and regulations is NOT 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. All the above (1 mark)

43. Which of the following is NOT tax avoidance scheme?

A. Smuggling goods to another jurisdiction
B. Fraudulent claim for refund of a value-added tax
C. Transferring assets to another person or entity to lower tax liability
D. None of the above (1 mark)

44. 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 acted with corrupt intent
C. The recipient is a government official
D. None of the above (1 mark)

45. Under the Bribery Act 2016, which of the following is NOT a relevant function or activity.

A. 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)

46. Which of the following statements is ACCURATE in regard to prevention of bribery under the Bribery Act 2016?

A. Only public and big 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 only a corporate offence.
C. The Bribery Act has broader applications in relation to anti bribery than the Anti- Corruption and Economic Crimes Act
D. All the above (1 mark)

47. Which of the following statements is NOT accurate 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 not an offence for an organisation to punish a whistle-blower or witness for offences committed by the whistle-blower or witness
D. None of the above (1 mark)

48. The Bribery Act imposes heavy penalties for bribery-related offenses. Which of the following is NOT correct in regard to a penalty under the Bribery Act?

A. Imprisonment (maximum of ten years)
B. Imposition of a fine (not exceeding Sh.5,000,000)
C. Where the person received a quantifiable benefit or any other person suffered a quantifiable loss, imposition of additional mandatory fine (two times the amount of the benefit and or loss)
D. None of the above (1 mark)

49. The Bribery Act imposes heavy penalties for bribery-related offenses, which of the following statements is NOT accurate in regards to penalty under the Bribery Act

A. Requirement to pay five times the benefit received
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. None of the above (1 mark)

50. Which of the following statements is NOT a legal element of 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. The defendant knew all the details of the illegal act (1 mark)

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

A. Protect the confidentiality, integrity and transparency of computer systems, programs and data
B. Prevent the unlawful use of computer systems
C. Facilitate for prevention, investigation, prosecution and punishment of cybercrimes
D. Facilitate international co-operation on matters covered under this Act (1 mark)

52. 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 be considered as unauthorised access
B. It is immaterial that the unauthorised access is not directed at any particular program or data program or data of any kind
C. If the unauthorised 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 (1 mark)

53. 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 unauthorised access will not be in additional to the unauthorised access 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 (1 mark)

54. 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. Member states must criminalise acts of corruption committed within their territories or by their nationals
D. None of the above (1 mark)

55. Which of the following statements is NOT accurate in regard to 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. None of the above (1 mark)

56. Which of the following statements is NOT accurate in regard to access with intent to commit further offence?

A. Authorised access with the intent to commit an offence under any law, or to facilitate the commission of a further offence by that person or any other person, commits a computer misuse offence
B. The further offence under any law committed through the access will be an additional offence
C. Authorised access with the intent to commit an offence under any law, or to facilitate the commission of a further offence by that person or any other person, commits a computer cybercrime
D. None of the above (1 mark)

57. Which of the following statements is NOT accurate in regard to unauthorised interference, to a computer system, program, or data?

A. Unauthorised interference can be committed by a person with both authorised and unauthorised access
B. Unauthorised interference can be committed by a person with authorised access
C. Unauthorised interference can be committed by a person with unauthorised access
D. None of the above (1 mark)

58. Which of the following statements 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 law making body
B. The FATF recommendations are standards but not a 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 (1 mark)

59. To prove a criminal case in a court of law in the common law jurisdictions, prosecution must prove intent. In regard to intent under the Anti- Corruption and Economic Crimes Act, which of the following statement 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 not 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. An offence of receiving, soliciting, giving or offering of any benefit, under the Anti-Corruption and
Economic Crimes Act is an offence of strict liability (1 mark)

60. 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 computer fraud
B. Corruption and Cybercrime
C. Economic Crime and Cybercrime
D. Misappropriation (1 mark)

61. Phares is a principal accountant at XYZ government agency. Phares is responsible for authorising payments. In collusion with the procurement manager, they agreed that Phares enter fraudulent invoices into the system to be considered for payments. Which of the following is NOT accurate in regard to the offence committed by Phares and the vendors?

A. The vendors, would be charged with conspiracy and economic crime under the protection of government property or revenue and revenue and forgery
B. Phares would be charged with computer forgery, economic crime and conspiracy
C. The procurement manager would be charged with conspiracy and economic crime
D. None of the above (1 mark)

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

A. Corruption offences are usually accompanied by a 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 incorporates all other associated offences and are
charged as one offence
D. None of the above (1mark)

63. Which of the following organisations is established under the POCAMLA?

A. Central Bank of Kenya
B. Financial Reporting Centre
C. The Ethics and Anti-Corruption Commission
D. Asset recovery agency (1 mark)

64. At which of the following stages is it harder to detect money laundering

A. At the placement stage
B. At the integration
C. At the detection
D. At the layering stage (1 mark)

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

A. This Act applies only to financial institutions
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 (1 mark)

66. 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 (1 mark)

67. 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 be liable for a legal offence
D. None of the above (1 mark)

68. Which of the statements is NOT accurate in regard to accounting officers?

A. The accounting officer would be held responsible for the loss of resource of their entity
B. The accounting officer must ensure the financial statements are accurately presented
C. The accounting officer has the primary responsibility for the management of the resources of their entity, and therefore would be personally held responsible for any mismanagement of the entity’s resources
D. None of the above (1 mark)

69. Which of the following statements is ACCURATE 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. Law enforcement officers are required to obtain search warrants to conduct searches and seizure
C. All government officers must obtain search warrants to conduct any investigations
D. None of the above (1 mark)

70. 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 will attract corporate liability in addition to the director’s personal liability (1 mark)

71. Which of the following statements is NOT 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 not have reporting obligations
C. Under the POCAMLA Act, financial institution does not include designated non-financial institutions
D. None of the above (1 mark)

72. Which 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 knowingly assists a private or public 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
D. All the above (1 mark)

73. Which of the following statement 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. None of the above (1 mark)

74. Which of the following statements under the Anti-Corruption and Economics Crime 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 did not occur
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 in addition to the underlying offence
D. A person who incites another to do any act or make any omission of such a nature that, if that act was done or the omission were made, an offence of corruption or an economic crime would thereby be committed, is guilty of an offence (1 mark)

75. Which of the following is NOT a bid rigging offence under the Anti- Corruption and Economic Crimes Act?

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. Withdrawing or changing a tender, proposal, quotation or bid
D. Submitting a tender, proposal, quotation or bid with a specified price or with any specified inclusions or exclusions because of an inducement or reward (1 mark)

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

A. The prosecution must prove that perpetrator owed the principal fiduciary duty when he/she embezzled the funds
B. The prosecution must prove that the perpetrator was officially the custodian of the money or property that he/she embezzled
C. The prosecution is not required to prove that the perpetrator’s intent to embezzle the money or property
D. None of the above (1 mark)

77. In prosecution of an offence that involves receiving a benefit that is an inducement or reward for doing an act or making an omission, which of the following is a 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 was not completed
D. None of the above (1 mark)

78. 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 cannot be found guilty of perjury for false statement made outside the court (1 mark)

79. Which of the following Kenyan law 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. Computer Misuse and Cybercrime Act (1 mark)

80. Which of the following is NOT a legal element of false claims to the government?

A. Making a false claim even if 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. None of the above (1 mark)

81. Which of the following statements 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. An accountant can be held liable for professional negligence for misrepresentation of the organisation’s financial performance (1 mark)

82. Which of the following statements is ACCURATE in regard to the private and public entities obligation to put procedures in place to prevent bribery

A. The Bribery Act,2016 has not criminalised failure to put procedures in place to prevent bribery, because failure to put procedures in place is a civil action
B. Failure to put procedures 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. None of the above (1 mark)

83. The Tax Procedure Act does NOT criminalise which 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, 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 (1 mark)

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

A. The Bribery Act, 2016 (the Bribery Act) came into force in 2017 with the object of providing a framework
for the investigation, and punishment of bribery and related offenses
B. The Bribery Act 2016, come in awake with an initiative to combat corruption in all sectors of the country’s economy
C. The Act applies to both private and public sectors.
D. None of the above (1 mark)

85. Which of the following statements under the Anti- Corruption and Economic Crime is NOT accurate?

A. A public officer or state officer who is charged with corruption or economic crime shall be suspended, at half pay, with effect from the date of the charge until the conclusion of the case
B. A public officer or state officer who is convicted with corruption or economic crime shall be suspended, at half pay, until the outcome of the appeal
C. A public officer or state officer who is convicted of corruption or economic crime shall be dismissed
immediately without any pay
D. None of the above (1 mark)

86. 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 evidence of corruption
C. An oral direct testimony is evidence of corruption
D. None of the above (1 mark)

87. Which of the following is NOT a recommendation that the United Nations Convention made to their member countries on combating bribery in international business.?

A. To enhance only criminal laws
B. To enhance banking and accounting requirements and practice
C. To enhance tax systems and regulations
D. None of the above (1 mark)

88. Which of the following statements is NOT accurate in regard to official and commercial bribery under the Foreign Practice act, UK Bribery Act and the Bribery Act 2016?

A. Official bribery refers to the corruption of a public official, to induce an official act of government under the three anti-bribery laws above
B. Receiving of bribes by public officials in positions of trust in Kenya can be charged with abuse of office in addition to bribery
C. Bribery Act, 2016 criminalise commercial bribery
D. Bribery Act, 2016 does not criminalise commercial bribery (1 mark)

89. 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 (1 mark)

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

A. Promise for future employment or contract
B. Payment made to shell companies
C. Discharge of any obligation or other liability
D. None of the above (1 mark)

91. Which of the following statements is ACCURATE in regard to misappropriation?

A. The prosecution must prove that perpetrator was in a position of trust 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 for their benefit or another person’s benefit
D. All the above (1 mark)

92. Which of the following 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 prosecution can prove that the statement
was intentional and the statement was material
B. A person can be found guilty of making a false statement only if the government did suffered loss
C. A person cannot be found guilty of making a false statement if the government did not rely on the statement
D. None of the above (1 mark)

93. Which of the following statements is ACCURATE with regard to Computer Misuse and Cybercrime?

A. All computer related offences are cybercrimes
B. Computer misuse and cybercrime are the same
C. Computer Misuse and Cybercrime are two laws in one, computer misuse is a law against misusing computer and cyber cybercrime is a law against the use of computer and internet to perpetrate a crime
D. All the above (1 mark)

94. Financial institutions are under obligation to report any suspicious transactions. Which of the following statements is ACCURATE in regard to reporting?

A. The report should be made to the Central Bank of Kenya
B. The report should be made to the Financial Reporting Centre (FRC)
C. The reporting institutions should only report suspicious transactions of new customers
D. None of the above (1 mark)

95. Know your customer/Anti-Money Laundering (AML)/CFT guidelines are measures to prevent the bank from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. What does “C” stand for in “CFT”?

A. Countering
B. Case
C. Current
D. Combating (1 mark)

96. Which of the following statements is ACCURATE in regard to Financial Action Task Force?

A. Kenya is a member of the Financial Action Task Force
B. Financial Action Task Force, membership requirements are very stringent and not all countries including Kenya, have been able to meet the requirements
C. Only a few countries globally are not full members of the Financial Action Task Force
D. None of the above (1 mark)

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

A. This act does not apply to stock brokers and saccos carrying out transactions on behalf of 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. None of the above (1 mark)

98. Which of the following statements is NOT accurate in regard to bid rigging?

A. Bid rigging is a type of a corruption offence under the Bribery Act 2016
B. Refraining from submitting a tender, proposal, quotation or bid because of a promise of a sub contract is a bid rigging offence
C. Withdrawing or changing a tender, proposal, quotation or bid because of an advantage or benefit
D. None of the above (1 mark)

99. Which of the following Kenyan laws is NOT related to fraudulent financial reporting in a government entity?

A. Public Finance Management Act
B. Computer Misuse and Cybercrime Act, 2018
C. Capital Markets Act
D. Public Procurement and Assets Disposal Act (1 mark)

100. Which of the following statements is ACCURATE in regard to money laundering?

A. Money laundering is a type of a corruption offence
B. Money laundering is a type of an economic crime
C. Money laundering offences are tried by the anti- corruption courts

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