Question 5 (16) Consider a situation in which a fictional company, the XYZ Group, loses an average of R10 000 per month

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Question 5 (16)
Consider a situation in which a fictional company, the XYZ
Group, loses
an average of R10 000 per month in profits from its high-end
sunglasses
due to employee theft. It has been determined that the items are
being
stolen from the company warehouse. Senior executives establish a
plan
to eliminate the theft and the executives establish a goal of zero
thefts
within three months. XYZ installs cameras in the warehouse and
places
locks on the cabinets where the most expensive sunglasses are
stored.
Only the warehouse managers have keys to these cabinets.
After three months, XYZ managers contact the bookkeeper to get
the
sales and inventory figures for this period and compare them with
the
previous period, taking into account orders for deliveries, returns
and
defective merchandise. They determine that the company lost R2000
the
first month, R3000 the second month and R2000 the third month due
to
theft, which is an improvement but short of the goal. Managers
then
suggest adjustments to the control system. XYZ senior
executives approve of the suggestion to institute a zero-tolerance
policy for employee theft. Now, if there is evidence that an
employee has stolen a pair of sunglasses, that employee’s job will
be terminated. The employee handbook is updated to include the
change, and XYZ executives hold a meeting with all warehouse
employees to communicate the policy change. Source:
Lumenlearning.com
5.1Indicate the five steps of the control process shown in the
case study above. Link the relevant aspects of the scenario to each
step. (16)