The Independent Australian Industry Capability (AIC) Plan Assurance framework provides a transparent audit process for AIC Plans. These audits are performed by independent audit firms and allow for ongoing remediation action monitoring.

Early intervention, analysis of audit outcomes and identification of systemic issues or trends allow improvements to AIC Plan content and structure, project management practices and how policy intent is being achieved.

Through audits, noncompliance (or risk of noncompliance) of individually contracted AIC Plans can be:

• detected
• referred for assessment
• validated
• reported.

Audit selection process

All contracts with a mandated AIC Plan can be audited. Contracted providers will be selected for audit via one of 2 mechanisms:

1. an annual audit program that uses risk criteria for ‘sample-based’ or ‘triggers’ to identify the risk of non-compliance
2. direct referrals of potential noncompliance to either Defence or the Minister for Defence Industry.

Defence does not usually name which projects and companies are being audited. Naming of companies undergoing an AIC Plan audit will be in consultation with the company and the Federal Government.

Reporting

The results of individual audits will be reported to Defence, the Minister for Defence and the Minister for Defence Industry. Results will be analysed over time, and reports will be completed annually. Defence releases individual audit results publicly without any commercially sensitive information.