Internal Controls: Identifying Control Elements and implementation Dynamics Facing Retail Companies.

Retail company managers face challenges that include how to protect their companies from theft, embezzlement, and fraud. Retail companies lose up to 5% of their revenue to frauds annually. However, in most cases, managers\u27 understanding, design, and implementation of strong internal control systems could minimize the problem. The purpose of this case study was to explore strategies managers used to strengthen internal control. The purposive sample included 5 experienced company managers from large and medium-size retail companies in Virginia. The conceptual framework consisted of the treadway committee of sponsoring organizations model and the criteria of control. Participant interviews, document reviews, and observation led to rich data. Interview data were transcribed, coded, and analyzed using the modified Van Kaam method to identify themes such as control, technology, evaluation, adaptability, efficiency, and accountability. Findings showed that deficiencies caused changes in the control systems, personnel, and evaluation that figure centrally in internal control reviews. Managers\u27 use of technologies emerged as the key strategy for minimizing risk. Business leaders could use these findings to strengthen operational practices and inculcate in employees\u27 ethics of internal control. Business leaders may thereby produce civil members within their operating communities. Resultant lower product prices could benefit consumers, improve community-company relationships, and make the community safer