Research paper on Corruption Schemes made for submission to Institute of Chartered Accountants of India for FAFD Course(Forensic Accouting and Fraud Detection).

1. Prepared By:- CA Shivam Gupta
M.No:434316
Registration Number : 7971
Purpose : For submission to
Digital Accounting & Assurance board

2. Motive Of Research:-
 To Understand Factors Causing Corruption :-
o Greed of Money
o Desires
o Complicated Systems
To get overview of Various Corruption Models
Adopted by Fraudsters.

3. Background
 Corruption may include many activities
including bribery and embezzlement.
 A study conducted by Transparency International in
2015 recorded that more than 62% of Indians had at
some point or another paid a bribe to a public official
to get a job done.
 The largest contributors to corruption is entitlement
programs and social spending schemes enacted by the
Indian government.

4. Factors Causing Corruption
 “Corruption will occur if the corrupt gain is greater
than the penalty multiplied by the likelihood of being
caught and prosecuted”
 Greed of money, desires.
 Excessive regulations.
 Complicated tax and licensing systems.
 Lack of commitment to the society.
 Low levels of education.
 Lack of transparent laws and processes

5. Corruption Schemes
 Bribery
 Land and property
 Tendering processes and
awarding contracts
 Hospitals and health
care
 Income tax department
 Preferential award of
mineral resources
 Indian black money in
Switzerland
 Domestic black money
 Gold purchases
 Donations
 Multiple bank
transactions

6. Conclusion
 The most frequently occurring fraud scheme is
corruption and bribery, which is part of about 30% of
all fraud that is uncovered.
 At present there are no legal provisions to check graft
in the private sector in India. Government has
proposed amendments in existing acts and certain
new bills for checking corruption in private sector.
 Corruption may lead to further bureaucratic delay and
inefficiency if corrupted bureaucrats introduce red
tape in order to extort more bribes.