Culture = Key

It is fair to state that the ‘culture’ of an organisation contributes to the incidences of fraud, bribery and corruption, yet internal controls are seen as of higher importance.

As a result of poor leadership, an organisation’s culture can become complacent with respect to fraud control (Australian National Audit Office, KPMG, 2011).  The Fraud Control Framework, displayed in Fraud Control in Australian Government Entities Better Practice Guide (2011), illustrates the essential conditions of effective fraud control.  The framework shows that effective fraud control measures begin with leadership and culture.  It also displays requirement to govern the recommended fraud control structure of AS8001-2008: monitoring, evaluation and reporting; prevention; detection; and response.

Fraud Control Framework (Australian National Audit Office, KPMG, 2011).

It is fundamental the organisation establishes a culture of honesty and integrity in order to minimise the risk of fraud, bribery and corruption.  There are three main elements to establishing an anti-fraud culture, consisting of:

1.    Preparing a statement of ethical behaviour which outlines what is/is not tolerated in the organisation;

2.    Recruiting honest staff by screening staff to identify past dishonest conduct; and

3.    Maintaining a good working morale (Button & Brooks, 2009, p. 232).

To assist in establishing an anti-fraud culture, organisations should avoid contributors to fraud, such as inadequate pay, poor promotion opportunities and lack of recognition (Van Akkeren, 2016).  My workplace performs remuneration reviews biannually and holds monthly meetings where team members who display the visions and values of the firm are recognised.  This maintains a good working morale and an anti-fraud workplace.

References

Australian National Audit Office.  (2011).  Fraud Control in Australian Government Entities Better Practice Guide.  Retrieved from: https://blackboard.qut.edu.au/bbcswebdav/pid-6300325-dt-content-rid-6139363_1/courses/AYB115_16se1/Fraud%20Controls%20in%20Australian%20Govt%20Entities%202011.pdf

Button, M., & Brooks, G. (2009). "Mind the gap", progress towards developing anti-fraud culture strategies in UK central government bodies. Journal of Financial Crime, 16(3), 229-244. doi: 10.1108/13590790910971784

Standards Australia.  (2008).  Fraud and Corruption Control (AS 8001-2008).  Retrieved from: https://www.saiglobal.com/PDFTemp/Previews/OSH/AS/AS8000/8000/8001-2008.pdf

Van Akkeren, J.  (2016).  AYB115 Governance, fraud and investigation: Lecture 9 [Slides].  Retrieved from: https://blackboard.qut.edu.au/webapps/blackboard/content/listContent.jsp?course_id=_123312_1&content_id=_6144812_1