Risks and Controls Exam 2 Practice

Corruption fraud schemes specifically involve the misuse of power or influence to benefit oneself illegally. The correct answer includes bribery, which is the act of offering something of value to influence an official's actions. Conflicts of interest arise when individuals have competing interests that might corrupt their decision-making. Economic extortion involves coercing an individual or entity to provide something of value under threat. Illegal gratuities are payments made to someone for a favor or service that is intended to influence their decisions or actions.

The reason this answer is most appropriate is that it encompasses the core components of corruption, which relies on unethical influence and improper personal gain. Each element defined in the answer is a recognized form of corruption that can be used to manipulate decisions or actions to benefit the perpetrator. Understanding these categories is vital for recognizing and preventing corruption in various contexts, such as business and government.