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One
Boards are
held accountable for actions of management especially
fraud:-
- In Australia it is estimated. $5.8 billion p.a. is lost to fraud
every year.
- 85% of major frauds are committed by employees
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Two
Your-Call
is totally independent of your organisation and its
internal & external audit teams. Our independence
will encourage fraud reporting, corrupt conduct,
questionable accounting or auditing matters and serious
adverse behaviour such as bullying and sexual harassment.
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Three
Disclosures and fraud reporting by employees are one of the most effective methods of
fraud detection and are more likely to detect fraud
ahead of internal and external audits.
Association of Certified Fraud Examiners
USA reported that fraud reporting or "tip offs"
by employees accounted for 46% of internal fraud detections.
Please click on the following link CFE
2006
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Four
Organisations
with fraud reporting "hotlines" reduced internal theft
& fraud by up to 50% through early detection and
the deterrence effect created by the external line's
presence.
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Five
Directors
and officers have increasingly onerous responsibilities
and personal liabilities, with the potential for criminal
actions for a host of issues in their organisation including:-
- Certain breaches of Occupational Health & Safety
Laws are classified as criminal offences.
- Vicarious liability is a legal doctrine, which holds
an organisation responsible for the wrongful actions
of another, meaning employers are legally responsible
for the discriminatory acts of their employees.
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Six
Australian
Auditing Standards 210 requires directors to sign a
declaration that they are not aware of Irregularities,
Including Fraud, Other Illegal Acts and Errors in their
company.
Note:
From 1 July 2004, CEOs and CFOs must make a written
declaration to the Board that the financial statements
are in accordance with the Corporations Act 2001 and
Accounting Standards, that the statements present a
true and fair view of the company’s financial
position and that the company’s financial records
have been kept in accordance with the Corporations Act
2001.
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Seven
Government,
regulators and the business community have lifted the
bar in terms of good governance, disclosures and protection
for whistleblowers:-
- All Australian states have enacted whistleblower
protection legislation to support the reporting of
corrupt conduct in the Public Sector.
- Standards Australia has released AS8004 Whistleblower
Protection Programs for entities intended for public
& private companies.
- ASX principles recommend that Australian listed
companies have a whistleblower system.
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Eight
Corporate
Law Economic Reform (CLERP 9) provides for a voluntary
fraud reporting or whistle blower service within companies.
Corporations
Act 2001 Section 1317 provides a disclosure may be made
to A.S.I.C.; the company's auditor, secretary or senior
manager of the Company or a person authorised by the
company to receive disclosures.
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Nine
Pre-position
your organisation to comply with potential future legislative
change, particularly that which is anticipated within
Australia
- U.S.A. Sarbanes Oxley Act 2002 requires all publicly
listed companies traded on the US Stock Exchange to
provide a confidential, anonymous reporting mechanism
for employees.
Note:
Australian Entities listed on the US stock exchange
also have to comply.
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Ten
Improved workplace
culture is recognised as a key driver of brand, reputation,
performance, profit, and customer and employee satisfaction.
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