RSM Australia

Better practice fraud and corruption control guide AS 8001 in final draft for imminent release

Technology Insights

Many who have responsibility for fraud and corruption control within their business (whether private or public sector) will know of the better practice guidance from the Australia Standard AS 8001 Fraud and Corruption Control.

In Australia, AS 8001-2008 has been the backbone of guidance on how to prevent, detect, and respond to the risks of fraud and corruption as per the following graphic from page 18 of AS 8001-2008.

AS 8001-2008

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Source: Australian Standard® AS 8001-2008 Fraud and Corruption Control, p18

There was an information session webinar to the public facilitated by the NSW Independent Commission Against Corruption (ICAC) on 7 July 2020 on the revision to AS 8001. From that presentation, the following depicts the current situation (prior to the revised draft) and the Governance Series of Australian Standards in which AS 8001 fits.

Background to AS 8001-2008

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Source: NSW Independent Commission Against Corruption (ICAC) webinar presentation on the revision to AS 8001, 7 July 2020

AS 8001 is now undergoing a refresh with a revised draft called DR AS 8001:2020 released to the public for comment from 27 May 2020 to closing on 29 July 2020. It is clear that there has been a great deal of hard work contributed into DR AS 8001:2020 from a number of volunteers who comprise the Standards Australia AS 8001 revision Committee. The quality is excellent and is due for release either late 2020 or early 2021.

as_8001_graphic3_new.jpg

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Source: DR AS 8001:2020

The main changes from AS 8001-2018 to the current draft DR AS 8001:2020 (or 2021) are as follows according to the draft released for public comment and the public presentations:

  1. Minor restructuring but still with an emphasis on fraud and corruption prevention, detection and response

  2. Minimum requirement clarification in terms of ‘shall’ do certain things to conform to the standard

  3. A ‘Fraud and Corruption Control System (FCCS)’ replaces a ‘Fraud and Corruption Control Plan’ with documentation still required but as part of the overall system

  4. Harmonising AS 8001 with AS/ISO 37001-2019 Anti-Bribery Management Systems

  5. The introduction of normative references which are other standards with which conformance is required before AS 8001 conformance can be achieved

  6. Updated definitions

  7. Updated guidance on fraud and corruption prevention, detection and response for

    • The role of ‘Governing Body’ and ‘Top Management’risk checklist
    • External attack particularly cyber attack
    • Whistleblowing
    • Supplier vetting
    • Fraud and corruption risk assessment
    • Immediate action on the discovery of a fraud or corruption event, including digital evidence first response
    • Capture and analysis of digital evidence
  8. Introduction of the concept of ‘pressure testing’ for internal control systems

  9. Introduction of guidance on the impact of fraud and corruption on third parties and whether to inform third parties


What does this mean for you?

Effectively, no matter what organisation or type of business you are, there will be something you can get out of the new AS 8001:2020 (or 2021) Fraud and Corruption Control standard when finalised. This may be a complete comparison of what your business has in place against the revised AS 8001 for continuous improvement and filling those fraud/corruption mitigation gaps, to smaller businesses getting tips and tricks on what to do to help the business reducing loss from such key business risks, which for some business can mean the difference between profit and loss.

For more information

If you have any questions or would like to discuss how the new AS 8001:2020 (or 2021) and better practices in fraud and corruption control can help you and your business, please do not hesitate to contact Roger Darvall-Stevens, National Head of Fraud & Forensic Services at RSM.

Learn more about the Fraud and Forensic Services at RSM >>

Authors

Roger Darvall-Stevens
National Head of Fraud & Forensic Services
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