Question

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 <89 million from these thieves in 2012

Watch J. Farrell's video titled "Prevent Employee Theft in Your Business":

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Provide at least two (2) examples of internal controls that could be implemented to reduce theft in the U.S. retail industry.

Answer 1

The U.S retailers are losing heavy through this employee theft on a regular basis. This is one of the major elements prevailing in the retail industry to get affected. Steps to avoid this element are mentioned below.

Internal controls that could be implemented to reduce theft in the U.S retail industry:

1. Employee Awareness: The initial point to reduce theft from the employee side is getting aware of him through his background check through his several social media accounts and term he is going to stay within the organization so that he will retain with the organization. Also, making him aware of the charges he will be under if violating the anti theft practices etc,. and also sharing the thefts that are undergone in the organization previously and the action they've taken.

2. Financial Analysis: There should be constant analysis of the financial statement so that they can evaluate the reasons to decline in the revenue of the organization where this element could be detected and regulated as early as possible without the organization get affected in the long run.

3. Adopting latest technology: Keeping a constant watch on the employee with the latest technological surveillance so that the theft is reduced to the optimal level and also this will be indirectly affecting your revenue by making a strong ethical environment within the business.