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Sunshine Fashion: Fraud, Theft and Misbehaviour among Employees  
 
Product Ref: 10/483C Company: Sunshine fashion Co. Ltd

Product Type: Case Industry: Apparel, Accessories and Luxury Goods

Related Product(s): Teaching Note
Shenzhen-based Sunshine Fashion Co. Ltd ("Sunshine") is a Sino-Japanese venture that has grown from mere original equipment manufacturing of cashmere sweaters for export to include retailing, with 220 retail points throughout China. In order to manage its retail operations, it has set up both regional and branch offices to handle stock and to support and monitor its retail points. It has installed an ERP system for tracking its goods and monitoring sales. The implementation of the ERP system has improved the situation. For example, the system has helped Sunshine to manage its domestic business considerably through reliable and consistent reporting from the retail points and branch offices. Nonetheless, fraudulent behaviour among employees has cost the retail chain the equivalent of almost 5% of its domestic sales. What more can the management do to control such behaviour and reduce its loss?
Functional Area : Accounting & Control

Learning Objective: To provide students with a basic understanding of how the absence of appropriate control mechanisms can impact a business; to analyse strengths and weaknesses of an internal control system using the COSO framework; to explore the importance of personal ethical integrity within a commercial organisation; and to explore the challenges of running a retail operation in China's developing market.
Length: 6 pages Country: China (People's Rep. of)

Pub. Year: 2011 Level of Difficulty: 2
         
This product type is available in the following language(s):      English
         
Related Information: N/A
 
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