Preventing Employee Theft – Accounting

Preventing Employee Theft – Accounting

Employee theft is a major problem in the U.S. retail industry. Information obtained from SecurityInfoWatch reported that twenty-three (23) major retailers alone apprehended over 1.1 million shoplifters and dishonest employees, and recovered more than $189 million from these thieves in 2012. Watch J. Farrell’s video below titled “Prevent Employee Theft in Your Business,” and provide at least two (2) examples of internal controls that could be implemented to reduce theft in the U.S. retail industry.

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Internal control measures are very vital in averting possible fraud in the retail market. Owners of retail stores must have proper internal control methods to help in cross-checking possible fraudulent avenues. It is essential to separate duties of the employees in the retail store and make each accountable concerning a specific task. It is also prudent to put in place a well-defined system of authorization to make sure not all employees have access to some information on the business (Niehoff, 2000).

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