FACTORS AND MOTIVATION OF FRAUD IN THE CORPORATE SECTOR: A LITERATURE REVIEW Shivam Kakati*, Chandana Goswami** INTRODUCTION No one is born-fraudster; it is the situation and environment that motivates a person to become one. The study is conducted to identify these extraordinary situations which lead to frauds in the corporate sector. Scandals such as WorldCom, Enron, Satyam Computers, Lehman Brothers etc. have taken the corporate sector by storm. Frauds are basically motivated due to the individual’s or group’s current situation and environment. The behavior and attitude towards a particular situation by an individual or a group and their integrity plays a vital role in the occurrence of fraud. A study found 66% of the reported frauds were motivated by personal fnancial gain and greed (Ross, 2016). MEANING OF FRAUD According to International Standard of Auditing 240 (2009), fraud is an intentional act by one or more individuals, including management and those charged with governance, employees or third parties, which involves the use of deception to obtain an unjust or illegal advantage. The act (act of fraud) will be considered as fraud if the perpetrator has the knowledge about the act and has the intent to deceive, and the victim has suffered loss or damage due to such act (Fisher, 2015). Hence, in corporate sector, fraud means any act done or withholding the knowledge of such act being done, to get an unjust and illegal advantage. Ramamoorti and Olsen (2007) defned fraud as a human endeavor, involving deception, purposeful intent, intensity of desire, risk of apprehension, violation of trust, rationalization, etc. METHODOLOGY The objective of the study is to identify the factors that motivate frauds in the corporate sector. There is a big pool of knowledge regarding motivations for committing fraud. This paper aims to consolidate and conduct a literature review to identify the most prominent motivation factors resulting into fraud in the corporate sector. The study also aims to fnd out prevention and detection techniques for such fraud in an organization. The data for the study was collected from 66 different secondary sources such as books, journals, reports etc. FRAUD MOTIVATION MODELS: A BRIEF HISTORY Dorminey, Fleming, Kranacher, and Riley (2012) studied the evolution of fraud theories. The study found that the basic model for fnancially motivated crime in the 1600s and 1700s was just the characteristics of the perpetrator. Sutherland * Research Scholar, Department of Business Administration, Tezpur University, Assam, India. Email: shivamkakati@gmail.com ** Professor, Department of Business Administration, Tezpur University, Assam, India. Abstract Purpose: In the wake of big corporates houses failing to evade corporate frauds, a study was needed to identify primary factors leading to fraud. The main purpose of this paper is to identify the major factors and motivations for fraud in the corporate sector. Design/Methodology/Approach: There is a big pool of literature regarding the motivation of fraud. This paper aims to consolidate and conduct a literature review to identify the most prominent motivation factors resulting into fraud in the corporate sector. The data for the study was collected from secondary sources such as books, journals, reports etc. Findings: The study formulated a new fraud motivation model, where the integrity of the manager or the individual is given more importance than other factors. The study also identifed various individual and business pressures that could motivate the managers or individuals that could lead to irrational behavior and fraud. The study identifes integrity as the most important factor for that motivates an individual to commit fraud. Research Limitation/Implications: The study is based on secondary source of data. The model prepared is yet to be applied. Originality/Value: A new fraud motivation model based on integrity, pressure, opportunity, capability and rationalization was structured. Keywords: Fraud Motivation, Fraud Models, Integrity Journal of Commerce & Accounting Research 8 (3) 2019, 86-96 http://publishingindia.com/jcar/