An action research to strengthen the internal controls to detect fraud in franchise stores under the MPM franchise group operating in the San Pedro, Laguna Area

• Main Author: Mariano, Victor Philip
• Format: text
• Language: English
• Published: Animo Repository 2016
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5272
• Institution: De La Salle University

This action research explored the opportunity to strengthen the internal controls to detect fraud in four company XYZ franchise stores under the MPM franchise group operating in the San Pedro, Laguna Area. This issue was highlighted during an incident wherein a delivery of product didn't have the proper documentary to make the delivery official. Through the action research and the investigations conducted, deeper issues surfaced for the organization which was caused by the group manager. The goal of this action research is to 1.) To enhance internal controls through policies and procedures. 2.) To determine what extent of fraud is happening inside/outside concerning the organization. 3.) To determine if there are any culpability or connivance among employees or individuals working inside or outside the organization. I performed four-step action research process guided by Coghlan and Brannick (2010), used Kurt Lewins Three-stage model theory of change as my guide in implementing the intervention, and adopted COSO (2013) Integrated Internal Control Framework as my conceptual framework. Collaboration discussions were implemented as a way of taking action and informal discussions took place with co-researchers was also implemented. Action and activities were documented whenever possible so that those interested in this research would be able to understand the process on how certain decisions and changes were realized based on the organizations current situation. Two surveys were disseminated to the employees to better understand the employee perceptions and opinions about the organization. The first one was an assessment and the second one was after the changes were implemented.