Graduate School of Business
Doctor of Business Administration (DBA)
Fraud Education, Employee Embezzlement, Small Construction Contractors, Internal Controls
Accounting | Business
Smith, Karen L., "Using Fraud Education to Deter Embezzlement in Small Construction Companies" (2019). Doctoral Dissertations and Projects. 2205.
Fraud education is important in helping small business owners to formulate a strategy for the detection and deterrence of employee embezzlement. This research study was developed to examine cases of employee embezzlement within small construction contractors in efforts to determine the importance of fraud education and to identify factors leading to being victims. Participants were interviewed concerning their experiences with employee embezzlement schemes. The findings support the need for fraud education as none of the participants had any such education. Even those that had some formal business education expressed a lack of understanding of the principles of fraud. In addition to the lack of education, the findings also identified misappropriation of trust, a lack of oversight, and the weakness of internal controls as the common factors that played a part in the embezzlers’ ability to commit fraudulent activity. The analysis of the cases included in this study provide other small construction contractors with suggestions for areas that need attention in the quest to reduce the risk of being victims of employee embezzlement.