Principles of Fraud Examination, 4th Edition

EXHIBIT 10-1

CHAPTER 10

CORRUPTION

LEARNING OBJECTIVES

After studying this chapter, you should be able to

10-1	Define corruption
10-2	Identify the four categories of corruption
10-3	Define bribery
10-4	Compare and contrast bribery, extortion, and illegal gratuities
10-5	Identify the two categories of bribery schemes
10-6	Understand kickback schemes and how they are committed
10-7	Understand bid-rigging schemes and explain how they are categorized
10-8	Describe the types of abuses that are committed at each stage of the competitive bidding process
10-9	Be familiar with the controls and techniques that can be used to prevent and detect bribery
10-10	Define conflicts of interest
10-11	Differentiate conflicts of interest from bribery schemes and billing schemes
10-12	List and understand the two major categories of conflicts of interest
10-13	Understand the provisions of U.S. and U.K. anti-corruption legislation
10-14	Be familiar with proactive audit tests that can be used to detect corruption schemes

CASE STUDY: WHY IS THIS FURNITURE FALLING APART?¹

A number of years ago, the Washington Post ran a series of articles detailing charges of waste, fraud, and abuse in the General Services Administration (GSA), the federal government's housekeeping agency. In particular, for more than a decade a furniture manufacturer in New Jersey had churned out $200 million ...