This audit would examine the effectiveness of the Department of Home Affairs’ (the department’s) arrangements to identify, manage and report on fraud and integrity risks.

Auditor-General Report No. 33 of 2016–17, Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2016, raised a Category B finding that the reporting of fraud instances to the department’s Audit Committee was not sufficient to facilitate appropriate review, and independent advice and assurance, about the appropriateness of the department’s fraud control and anti-corruption framework.

In 2017–18, the Department of Home Affairs reported the implementation of a number of new fraud and integrity measures. The Australian National Audit Office’s closing letter on the department’s 2017–18 financial statements acknowledged this progress by reducing the relevant finding to Category C, while identifying ongoing concerns about the completion of fraud risk assessment work for all Home Affairs functions, and the level of ongoing reconciliation and analysis of outputs from this risk assessment work.

A performance audit of the department’s fraud and integrity arrangements would assess the effectiveness of progress in addressing the financial statements audit finding, implementing the new measures, and improving the associated reporting arrangements.