Report 7

Fraud Prevention and Detection in the Public Sector

Auditor General’s Overview

Fraudulent and corrupt activities by definition involve deception and dishonesty. Such behaviour by its nature can be difficult to detect so organisations need to be vigilant. Fraud and corruption can have a significant impact on an organisation reputation and resources. The incidence of fraud and corruption in government agencies appears to be on the increase. The Western Australian Police and the Corruption and Crime Commission have advised us of their concern at the number of reported allegations involving government agencies. The best strategy for addressing fraud is to identify and raise awareness of the risks and put in place effective controls to mitigate those risks. The intent of this audit is to promote awareness of fraud and corruption risks and good practice approaches to managing them.

The nine agencies in this report undertake widely differing activities and so possibly face quite different risks for fraud and corruption. In fact, seven of these agencies have experienced fraud or corruption in recent years. However, no agency had a coordinated approach to managing its fraud and corruption risks though all agencies had directed some of their activity towards managing these issues. While for some agencies bringing their fraud and corruption controls up to standard, will require only a little extra effort, for others a more concerted approach is needed. I expect this report will assist all agencies in adopting a more proactive stance to address their fraud and corruption risks.

 
Page last updated: June 19, 2013

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