Fraud strategy statement
The Fraud Rule requires the accountable authority to ensure that officials in the entity are made aware of what constitutes fraud. A widely distributed fraud strategy statement can assist in raising awareness within the entity. A fraud strategy statement typically forms part of other corporate documentation, including the entity’s fraud control plan. The fraud strategy statement assists officials to understand what fraud is, their entity’s attitude to fraud, and what to do if they suspect fraud is being perpetrated.
A fraud strategy statement can contain the following:
- Definition of fraud and outline of the entity’s position on fraud
- The entity’s tolerance for fraud risk
- Statement of the entity’s commitment to investigating and prosecuting fraud or pursuing other remedies
- Statement of officials’ and contractors’ responsibilities relating to preventing and reporting fraud, and the protocol for how fraud is to be reported
- Summary of the consequences of acting fraudulently
- Assurance that allegations and investigations will be handled confidentially
- Directions on how allegations and incidents of fraud are to be managed
- Advice on where further information can be found.