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PART C: ACCOUNTING AND REPORTING SYSTEMS, CONTROLS AND COMPLIANCE 
 
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'bribes' (or 'gifts'), for example, vary widely. 'Lying' is also a very fluid concept: some cultures 
value 'saving face' (or agreeing) over giving strictly truthful responses.) 
2.1.2 Motivation 
In addition to a general predisposition or willingness to act dishonestly, should the opportunity arise, the 
individual needs a specific motivation to do so. We will be discussing the concept of motivation in 
Chapter 15 but, broadly, it involves a 
calculation
of whether a given action is worthwhile. Individuals 
weigh up: 
(a) The 
potential rewards
of an action: the satisfaction of some need, or the fulfilment of some goal; 
in relation to
(b) The 
potential sanctions
or negative consequences of an action, or the deprivations required to 
carry it through. 
The individual's goal or motive for fraudulent behaviour may be: 
(a) 
Financial needs or wants, or envy of others (in the case of theft or fraud for monetary gain) 
(b) 
A desire to exercise negative power over those in authority 
(c) 
A desire to avoid punishment (in the case of cover ups, say) 
2.1.3 Opportunity 
Even if a person is willing to act dishonestly, and has a motive for doing so, they must still find an 
opportunity or opening to do so; a 'loophole' in the law or control system that: 

Allows fraudulent activity to go undetected, or

Makes the risk of detection acceptable, given the rewards available. 
An individual will have a high incentive to commit fraud if they are predisposed to 
dishonesty 
and the 
rewards 
for the particular fraud are high and there is an 
opportunity 
to commit fraudulent action with 
little chance of detection 
or with insignificant sanctions if caught.