Small Retail Business Strategies to Detect and Prevent Employee Fraud

• In Event: Internal Control and Fraud Detection

Abstract

Employee fraud can jeopardize the sustainability of small businesses. Using Cressey’s fraud triangle theory, this multiple case study explored strategies used by managers and owners of small retail businesses to detect and prevent employee fraud. Participants from 5 small retail businesses participated in the study including 5 owners and 5 managers of small retail businesses who have implemented strategies to detect and prevent employee fraud. Through methodological triangulation, observations and documentary evidence supplemented data collected through semistructured interviews. Using thematic analysis by coding narrative segments, the research findings included themes of controls and communication, cash register accountability, segregation of duties, monitoring, and action against perpetrators. Managers and owners of small businesses may benefit from the findings of this study by gaining awareness of the need to detect and prevent employee fraud.

Authors

• Comfort Akuh, Kalamazoo Valley Community College

• Roger Mayer, SUNY College at Old Westbury

• Wen-Wen Chien, SUNY College at Old Westbury