Small businesses have an important role to play in the U.S. economy. However, employee fraud can jeopardize the sustainability of small businesses. Grounded on Cressey's fraud triangle theory, the purpose of this multiple case study was to explore strategies used by selected managers and owners of small retail businesses to detect and prevent employee fraud. Ten participants from 5 small retail businesses participated in the study. Nine participated in a face-to-face semistructured interview, and 1 participated in a telephone interview. These participants included 5 owners and 5 managers of small retail businesses in the state of Michigan in the United States who have implemented strategies to detect and prevent employee fraud. Through a process of methodological triangulation, casual 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. The implications for positive social change may include the potential to increase appropriate controls over employee fraud, thus enabling owners of small retail business an opportunity to operate effectively and efficiently, which could increase employment opportunities. Increased employment opportunities could create a positive effect on other small retail businesses and allow local communities to prosper.

This thesis focuses on the problems of the accounting fraud published in media. The first chapter describes the basic concepts of economic crime and its statistical development in the Czech Republic. The second and third chapters define the types of fraudulent action and its used methods on the theoretical basis. The fourth part creates a practical analysis of the accounting fraud. There is used the monitoring of media reports, which serve as a view of accounting manipulations.

Fraudulent behaviour by management has become a global problem that cuts across cultural and ideological divides. Therefore, given the high incidence and cost of fraud internationally and locally, as well as the fact that stakeholders, including shareholders, governments and non-governmental organisations, are increasing the pressure on organisations to manage unethical behaviour more effectively, it is astonishing that fraud per se has not attracted more research efforts. Enron, WorldCom and Arthur Andersen, among others, have underscored the fact that the current modes which are governing companies are not sufficient to protect investors and public interests, because it is easy for otherwise honest people to be swept along in a climate of corruption. The aim of this study was to propose a model to predict potential risk of management fraud based on the organisational climate of the organisation. An interpretative framework was used to develop a conceptual model. Analytical induction and Lawshe’s content validity ratio were applied to validate the conceptualised model. The conceptual model assumes that there are certain organisational climate factors (determinants and dimensions) within an organisation which could indicate the direction of climate within the organisation. The determinants are leadership style, managerial values, trustworthiness, and organisational values. The following dimensions were identified: level of individual autonomy, reward system of organisation, degree of open communication between employees and management, perceived individual pressure, and fairness and innovation. The conceptual model further assumes that, although employees’ acceptance and/or tolerance of unethical behaviour might be high, not all managers will engage in fraud, as the various aspects of the fraud diamond also impose a form of constraint on the organisation. The level of individual constraint as imposed by the fraud diamond is moderated by an individual’s gender, tenure, education and age, which form part of an individual’s capability and comprise the acquired traits of an individual. Apart from these biographical traits, the model includes personal traits that will also have an impact on an individual’s capability. The limitations, practical implications and recommendations for future research are also discussed. This study, not only augments fraud literature, but also contributes to industrial/organisational psychology by studying individual deviance from an organisational perspective. / Psychology / D. Phil. (Consulting psychology) : illustrated (some colored)

The world economy loses an estimated $3.5 trillion annually due to fraud. A weakened economy leads to additional hardships for individuals, families, and organizations. General strain theory (GST) posits that certain strains lead to negative emotional responses, and the result is delinquent behavior. The purpose of this research was to analyze the relationship between strain and occupational fraud through the theoretical framework of GST. The research questions addressed (a) occupational frauds as measured by strain levels of perpetrators, (b) the relationship between strain scores and the different occupational fraud types, and (c) the significance of the relationship between fraud motivation and each of the occupational fraud types. A quantitative, cross-sectional study using secondary data from the ACFE Report to the Nations on Occupational Fraud and Abuse database, was conducted to examine the relationship between strain, negative emotionality, and occupational fraud crimes. To examine this relationship, a sample of 2,910 cases were tested using nominal regression, logistic regression, and Pearson correlation. The results indicated that strain is significantly related to asset misappropriation and financial statement frauds. The results also showed that work-related motivation is significantly related to financial statement frauds. Scholars and practitioners should focus on agendas related to strain, work-related motivation, and financial statement frauds. Fewer fraud losses will positively impact society through increased employment opportunities, additional tax revenues for all levels of government, and increased cash flows for investors.

Fraudulent behaviour by management has become a global problem that cuts across cultural and ideological divides. Therefore, given the high incidence and cost of fraud internationally and locally, as well as the fact that stakeholders, including shareholders, governments and non-governmental organisations, are increasing the pressure on organisations to manage unethical behaviour more effectively, it is astonishing that fraud per se has not attracted more research efforts. Enron, WorldCom and Arthur Andersen, among others, have underscored the fact that the current modes which are governing companies are not sufficient to protect investors and public interests, because it is easy for otherwise honest people to be swept along in a climate of corruption. The aim of this study was to propose a model to predict potential risk of management fraud based on the organisational climate of the organisation. An interpretative framework was used to develop a conceptual model. Analytical induction and Lawshe’s content validity ratio were applied to validate the conceptualised model. The conceptual model assumes that there are certain organisational climate factors (determinants and dimensions) within an organisation which could indicate the direction of climate within the organisation. The determinants are leadership style, managerial values, trustworthiness, and organisational values. The following dimensions were identified: level of individual autonomy, reward system of organisation, degree of open communication between employees and management, perceived individual pressure, and fairness and innovation. The conceptual model further assumes that, although employees’ acceptance and/or tolerance of unethical behaviour might be high, not all managers will engage in fraud, as the various aspects of the fraud diamond also impose a form of constraint on the organisation. The level of individual constraint as imposed by the fraud diamond is moderated by an individual’s gender, tenure, education and age, which form part of an individual’s capability and comprise the acquired traits of an individual. Apart from these biographical traits, the model includes personal traits that will also have an impact on an individual’s capability. The limitations, practical implications and recommendations for future research are also discussed. This study, not only augments fraud literature, but also contributes to industrial/organisational psychology by studying individual deviance from an organisational perspective. / Psychology / D. Phil. (Consulting psychology)

This thesis deals mainly with internal fraud. In the first section, a definition of fraud is mentioned. The second section briefly describes the internal and external fraud and provides their basic structure. The third section deals with the reasons for committing fraud. The fourth section is concerned with the specific forms of internal fraud which come under the basic groups of corruption, misappropriation of assets and statements manipulation and other forms of fraud which may be between the internal and external fraud. The last section provides examples of large and small accounting examples relating to the internal fraudulent activities.

The dissertation thesis at large discusses the problems of unlawful conduct in the economic area, possibilities for its exposure and prevention issues. Every human conduct, apart from the legal viewpoint, may also be assessed from the moral viewpoint, whereas in this context, law is designated as the "moral minimum". From this relationship, we arrive at the conclusion that every instance of unlawful conduct is also immoral. On the contrary, conduct that complies with the law always need not be in compliance with the moral norms. In the Czech Republic, the New Criminal Code came into force on 1 January 2010, which also punishes the most severe forms of unlawful conduct and fundamentally affects performance of the accounting and auditing professions. Apart from some concept changes, this Codex also introduced, for instance, changes in the punishability of planning crimes. From the viewpoint of the auditor, tax adviser and accountant, barring of perpetration, whose commitment or planning authentically comes to the knowledge of the auditor, tax adviser or accountant seems to be fundamental. The issues of occupational fraud are mainly related to the problems of the auditing profession. These unlawful acts take various forms, which can be split into three basic groups, which are asset misappropriation, fraudulent statements and corruption. When exposing occupational fraud, as well as other forms of unlawful conduct, confidentiality issues are fundamental. In some cases, the law anticipates breaking through this confidentiality, mainly, for the purpose of exposing the most severe forms of unlawful conduct. Within the framework of prevention of occupational fraud, internal control systems play an essential role. It is possible to evaluate the existence of ethical codices, respectively, building of ethical corporate culture as very fundamental.