Abstract
Internal fraud plagues companies worldwide, and Many of these businesses are prone to internal fraud, threatening their survival and long-term profitability despite their considerable economic impact on UK life.While prevailing literature often attributes internal fraud in small businesses to weak or absent internal controls, alternative explanations have been posited but remain inadequately explored in relation to internal fraud, especially in small hospitality enterprises. Thus, it is unclear if internal control weaknesses primarily drive internal fraud in small hospitality businesses in the UK.
This qualitative study investigates internal fraud in small hospitality businesses to determine if internal controls (or their lack thereof) remain the primary explanation for internal fraud, as the small business fraud literature has suggested. The study interviews insiders, vendors, and accountants with small hospitality clients. In addition to interviews, online media coverage of internal fraud incidences in small UK hospitality enterprises was analysed. The underlying causes of internal fraud in these establishments were identified using Braun and Clarke's (2006) thematic analysis.
Findings reveal that internal fraud is widespread in small UK hospitality organisations, often beyond internal controls. The presence or absence of internal controls may not affect internal fraud incidents in these firms as much as many previous studies have suggested.
This research advanced theoretical discourse by showing how routine activity and situational crime prevention theory apply to internal fraud in UK small hospitality organisations. These frameworks improve the understanding of internal fraud in small UK hospitality organisations.
This study also identifies and explores internal fraud reduction challenges in this environment. These issues encompass various factors, from external pressures and regulatory constraints to personnel dynamics. This analysis illuminated these difficulties to help design targeted approaches and actions that improve internal fraud prevention in small hospitality firms in the UK and beyond.
The study's findings can spark talks about minimising internal fraud in small hospitality organisations in the UK and beyond.
By understanding the nuances of internal fraud in small UK hospitality firms, we can build more comprehensive and practical strategies to protect them.
| Date of Award | 13 Nov 2024 |
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| Original language | English |
| Awarding Institution |
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| Supervisor | Karen McBride (Supervisor) & Roza Sagitova (Supervisor) |