Forensic Investigations Regulations
Introduction
The Kroger cooperation is one of the largest American supermarkets found in the United States of America. The Kroger cooperation is known for supplying food products to other shopping malls and Americans. Kroger Bernard formed the supermarket in the year 1883 after practicing and opening various business activities. The Kroger cooperation supermarket is located in Ohio, Cincinnati and identified as one of the largest retail shopping mall in the entire world. The ranking of the supermarket are based on the revenue and the sales attained from the grocery to the customers. The Kroger cooperation is identified to have made almost ninety point four million dollars in the last financial year (Plunkett, & Plunkett Research, 2005). Ranked as one of the largest supermarkets in the entire world, various activities take place in the supermarket. For this reason, the management has to delegate some duties to the employees. However, the delegation procedure keeps the organization at risk because of the fraud activities. Although the levels of fraud activity in the entire business fraternity have reduced, fraud in the Kroger cooperation is still experienced.
One of the major fraudulent activities that take place in the Kroger cooperation is the increased theft conducted by the cashier. The Kroger supermarket employs various personnel to conduct the role of the cashier because of the increased number of the customers. However, from time to time, there are various complains that are attained in relation to the cashier (Plunkett, & Plunkett Research, 2005). It has been noted that the number of the clients that complain of lack of contribution of the appropriate balance from the cashier. Most of the employed cashiers are known for giving the customers inappropriate change. For this reason, the cashier steals from the customers to make their own profitable gain.
An additional fraud conducted in the Kroger cooperation is the cashier increasing the price of the commodity to make additional benefits from the customers. Since the customers lack enough information concerning the products in the supermarkets, it is easier for the cashiers to steal money. The cashiers increase the amount of the products to attain more credit profits from the customers. The cashier at the end makes more money gains especially if she/he steals from every customer in the supermarkets. Although there are installed cameras to record the fraud instances in the supermarkets, such fraud cases are visible from the cameras. For this reason, the cashier continues stealing from the customers (Plunkett, & Plunkett Research, 2005).
In the Kroger cooperation the overall risks concerning the financial losses have been reduced because of the management increased sensitivity and scrutiny of the employees. To assist in the reduction of the risks associated with the financial losses the managers have increased the security measures in the Kroger cooperation supermarket. For instance, the number of the cameras has been increased. The employees are also searched before and in the evening after retiring from duty (Cressy, Cumming, & Mallin, 2011).
The managers of the Kroger cooperation supermarket might be motivated to overstate the sales revenue because of the poor salary that they are paid by the owner of the firm. Most of the managers are tempted into participating into exaggerating the sales revenue because of the poor earnings that are received from the employers. Since the manager’s needs are more than the salary earned, they might still be tempted into earning more salary through fraud. Having knowledge of the profitable gain made by the supermarket also contributes to overstate of the sales revenue (Cressy, Cumming, & Mallin, 2011).
References
Cressy, R, Cumming, D & Mallin, C. (2011). Entrepreneurship, Governance and Ethics. Springer Verlag.
Plunkett, J. W., & Plunkett Research, Ltd. (2005). Plunkett’s retail industry almanac 2006: The only comprehensive guide to the retail industry. Houston, Tex: Plunkett Research.
