STRATEGIES FOR DEVELOPING AND IMPLEMENTING INTERNAL CONTROLS TO MINIMIZE FRAUD IN SMALL MERCHANDISE COMPANIES

Abstract

This paper explores strategies for developing and implementing effective internal controls to minimize fraud in small merchandise companies. Fraud is a significant risk for businesses of all sizes, but small companies are particularly vulnerable due to limited resources and informal business practices. The research examines key components of internal controls, focusing on the unique challenges faced by small merchandise companies, and provides actionable strategies to enhance their fraud prevention measures. The study emphasizes the importance of creating a strong control environment, implementing regular audits, and fostering a culture of ethical behavior. Through a combination of literature review, case studies, and expert interviews, this paper outlines best practices and provides recommendations for small business owners and managers. The paper is structured into four sections: literature review, research methodology, discussion, and conclusion. The literature review discusses the role of internal controls in fraud prevention, while the research methodology section explains the approach used in the study. The discussion identifies the most effective strategies for small businesses, and the conclusion provides recommendations for practical implementation.