Fraud and corruption control

Expected to be tabled in March 2018


Objective To determine whether fraud and corruption controls are well designed and operating as intended.

Issues Fraud is dishonest activity involving deception that causes actual or potential financial loss by an entity or others. Corruption is dishonest activity in which an employee of an entity acts contrary to the interests of the entity and abuses their position of trust in order to achieve personal gain or advantage.

Fraud and corruption investigations by the Independent Broad-based Anti-corruption Commission (IBAC) and various performance audits have found that the integrity systems intended to control fraud risks have been applied inconsistently and that these systems require regular testing.

Our 2012 audit Fraud Prevention Strategies in Local Government concluded that the five councils examined had not effectively managed their exposure to fraud risk, as none had developed a strategic and coordinated approach to controlling fraud. This audit will extend this examination to a state government department and its agencies.

Proposed agencies The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) and Public Transport Victoria (PTV).