Please use this identifier to cite or link to this item:
https://etd.cput.ac.za/handle/20.500.11838/3896
DC Field | Value | Language |
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dc.contributor.advisor | Le Roux, Suzaan | en_US |
dc.contributor.advisor | Dubihlela, Jobo | en_US |
dc.contributor.author | Asisa, Wive Lutiku | en_US |
dc.date.accessioned | 2024-01-16T09:59:50Z | - |
dc.date.available | 2024-01-16T09:59:50Z | - |
dc.date.issued | 2023 | - |
dc.identifier.uri | https://etd.cput.ac.za/handle/20.500.11838/3896 | - |
dc.description | Thesis (Master of Internal Auditing)--Cape Peninsula University of Technology, 2023 | en_US |
dc.description.abstract | SMMEs have been reported to encounter the highest fraud instances. Ineffective/inadequate internal controls constitute the major challenge faced by SMMEs. It consequently causes SMMEs to be more susceptible to fraud, which negatively affects their ability to achieve their business objectives and business continuation. Fraudulent activities in SMMEs happen because of weaknesses in the control environment. The aim of this study was to investigate the effectiveness of the control environment to mitigate internal fraud in retail SMMEs located in the Cape Metropole. This research falls within the positivist paradigm as it adopted the quantitative research approach, which focuses on recording empirical evidence to allow for the collection and analysis of numerical data. The quantitative data collection tool was a questionnaire consisting of closed and open-ended questions. Non-probability sampling methods, particularly purposive sampling and convenience sampling, were used to select a representative sample size of 100 respondents. Of the 100 structured questionnaires that were distributed to owners and/or managers of retail SMMEs operating in the Cape Metropole, South Africa, 96 were completed and returned to the researcher. The quantitative data obtained were analysed using descriptive and inferential statistics. From the analysed data, it was found that the sampled retail SMMEs were aware of the risk of internal fraud and made use of customised fraud prevention measures and internal control as a way to combat the risk of internal fraud. It became apparent that the sampled retail SMMEs had a control environment which fostered the implementation of a handful of customised control measures to mitigate the adverse effects of the fraud risk. The management (leadership) of the sampled retail SMMEs mostly assumed the responsibility of establishing a sound control environment within their business entities to mitigate internal fraud. The respondents further portrayed a positive attitude towards ethical behaviour and establishing counter-fraud initiatives. From the research findings it is evident that retail SMMEs have a sound control environment that contributes to the mitigation of internal fraud. SMMEs have become more sensitive and prone to the risk of fraud. Although the majority of these sampled businesses seemed to promote a fraud free environment, it is evident that some internal control deficiencies have led to the realisation of various risks, including the risk of internal fraud. This research provides SMME owners and managers with valuable information on how the control environment can be used effectively to mitigate internal fraud in SMMEs. Moreover, this research promotes the awareness, improvement and understanding of fraud mitigation measures within an SMME control environment. | en_US |
dc.language.iso | en | en_US |
dc.publisher | Cape Peninsula University of Technology | en_US |
dc.subject | Retail trade -- Auditing | en_US |
dc.subject | Small business -- Auditing | en_US |
dc.subject | Auditing, Internal | en_US |
dc.subject | Fraud -- Prevention | en_US |
dc.subject | Business losses -- Prevention | en_US |
dc.title | The effectiveness of the control environment in mitigating internal fraud in retail SMMEs in the Cape Metropole | en_US |
dc.type | Thesis | en_US |
Appears in Collections: | Internal Auditing - Masters Degrees |
Files in This Item:
File | Description | Size | Format | |
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Asisa_Wive_Lutiku_214013022.pdf | 11.38 MB | Adobe PDF | View/Open |
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