AS8001:2003 Fraud and Corruption Control

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AS80012003 Fraud and Corruption Control
Dean NewlanPartner, McGrathNicolForensic
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Background of Standard

• One of five standards released in June 2003 by
  Standards Australia to address a broad range of
  governance issues
• Corporate collapses in United States, Australia
  and elsewhere which eroded public confidence in
  the integrity of capitals markets
• Sense of escalating losses arising from fraud and
  corruption in Australia
• Poor example setting by some directors and senior
  executives
• AS 80012003 provided 18 keys attributes of a
  robust fraud and corruption control program
• Similar in style to a number of government sector
  pronouncements but more prescriptive
• Broad-based application
• Issued contemporaneously with the ASX Governance
  Guidelines
• Fraud Resistance a practical guide (SIRCA)

SYDNEY OPERA HOUSE
STANDARDS AUSTRALIA SECURITY FORUM
19 JULY 2006
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Objectives of the Standard

• The objective of this Standard is to outline a
  suggested approach to controlling fraud and
  corruption against and by Australian entities.

SYDNEY OPERA HOUSE
STANDARDS AUSTRALIA SECURITY FORUM
19 JULY 2006
4
New for 2006

• Structural changes
• Increased focus on information systems as a means
  of committing fraud and as a means of detecting
  fraud
• Upgraded role of the internal audit function in
  controlling the risk of fraud and corruption
  (referenced to International Standards for the
  Professional Practice of Internal Auditing)
• Example setting by senior executives
• Upgraded fraud risk assessment methodology
  (referenced to AS/NZ43602004)
• Upgraded employment screening guidelines
  (referenced to DR 05024)
• New customer and supplier vetting guidelines
• Reference to the role of the external auditor in
  fraud detection (referenced to AUS 210)

SYDNEY OPERA HOUSE
STANDARDS AUSTRALIA SECURITY FORUM
19 JULY 2006
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Key elements/scope of the Standard
SYDNEY OPERA HOUSE
STANDARDS AUSTRALIA SECURITY FORUM
19 JULY 2006
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Approval process for 2006 amendments
Working party review Completed Selected industry
road test Completed Exposure period of six
weeks August late September 2006 Working party
review submissions October 2006 Release of
amended standard November 2006
SYDNEY OPERA HOUSE
STANDARDS AUSTRALIA SECURITY FORUM
19 JULY 2006