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- Title
PREVENTING EMPLOYEE FRAUDS IN SMALL BUSINESSES WITH LOW-COST METHODS.
- Authors
Treadwell, Gregory W.
- Abstract
Large businesses employ layers of managers, have an abundance of internal controls, and provide employee oversight. In contrast, many small business managers are unwilling or unable to spend existing funds to develop internal controls or provide employee oversight. For these and other reasons, desperate or disgruntled employees often target small businesses. Therefore, the purpose of this study was to reduce small business fraud by identifying what assets motivated employees choose to misappropriate. Then, to determine how motivated employees steal employer assets and to identify what these perpetrators purchase with the stolen items once converted to cash. This emerging information can then help managers of small businesses identify and implement low-cost methods that can help prevent small business employee fraud. Low-cost fraud reduction methods that small companies often adopt include purchasing employee theft insurance, adopting a code of conduct, implementing acceptable hiring practices, and hiring office workers with fraud training. Management may also choose to establish a fraud reporting system and train managers to question why documents are missing or manipulated. Finally, management should learn to listen and look for fraud and use exit interviews to identify ongoing fraudulent activities.
- Subjects
SMALL business; EMPLOYEE theft; WHITE collar workers; EMPLOYEE selection; INTERNAL auditing; EXIT interviewing; INSIDER trading in securities
- Publication
Journal of Business & Accounting, 2021, Vol 14, Issue 1, p3
- ISSN
1944-2874
- Publication type
Article