New pressure testing tool to help assess fraud

Fraud controls are individual measures, processes or functions that help entities prevent, detect and respond to fraud.

Not all fraud controls have the same impact on the management and reduction of the risk. Some fraud controls, such as authentication controls, may be absolutely critical to the management of the risk, while other fraud controls may only have a minor impact on the risk.

The Centre has recently developed a new tool to help entities assess the criticality of fraud controls. The tool uses a rating system against 4 criteria to help inform control criticality assessments:

1. Probability – the likelihood of fraud occurring if the control is ineffective or partially effective
2. Frequency – the frequency of fraud occurring if the control is ineffective or partially effective
3. Duration – the length of time fraud could remain undetected if the control is ineffective or partially effective
4. Impact – the impact of fraud if the control is ineffective or partially effective.

The tool is designed to provide a consistent approach to criticality assessments and can be useful in assisting entities to determine where to focus their efforts in pressure testing activities.

To find out more or gain access to the tool, email info@counterfraud.gov.au