to the entity’s inventory (Rawat, 2015).Theoretical FrameworkThis study was supported by the following studies:Naliaka&Namusonge (2005) emphasized that demanding situations ofinventory management and control were around for a completely long timemainly in fields of discrepancies, theft, fraud, obsolescence, deterioration andbreakages. Businesses sometimes do not control their inventory holdingwhich cause them to stay off production with low stocks resulting to businessineffectiveness thus developing problems between inventory control andbusiness effectiveness, profitability and productivity. An excessive amount ofinventory consumes physical space, creates financial burden and increasepotentiality of spoilage, damage and loss.Effective internal management control, if implemented effectively can leadto success in business areas. This is supported by the theories of (Hayes,1995 &Synder et al, 1989) Doyle et al, 2007), by noting that improved internalmanagement control should result to more reliable internal data andinformation such as inventories, payable and performance level, thereforeleading to improved operations, better internal decision making and loweremployee fraud.
15Ingram (2012), emphasized that internal business controls such asinventory audit, physical inventory counts on hand and compare it withinternal inventory records, purchase records and sales records to help detectoccurrence of theft, spoilage or other forms of frauds.This study is premised on the assumption that in any businesses,especially Concessionaires, a careful study of inventory managementpractices is needed to ensure better performance, thus influences fraudcontrol implementation. More relevant than the others, the above threetheories will be used as basic ground in determining the relationship betweenthe two variables.Conceptual FrameworkThis study is aimed to determine the correlation between inventorymanagement and fraud control implementation of concessionaires in amongUniversities in Davao City.Figure 1 illustrates the conceptual framework of the study. It shows therelationship between the variable X indicated by level inventory managementin terms of 1.) Stock Outs and 2.) Surplus Stock; and variable y indicated bythe level fraud control implementation in terms of 1.) Inventory Theft and2.)Physical Inventory Count.Variable XVariable YFraud Control ImplementationSegregation of Duties Physical Inventory CountInventory ManagementInventory PlanningInventory Control
16Figure 1. Conceptual Framework Showing the Variables of the Study
17Chapter IIIThis chapter presents and discusses the research design, researchrespondents, research instruments, data gathering procedure and statisticaltools to be used in this study.Research DesignThis study uses the descriptive-correlation design. Since this study aimedto determine the correlation between inventory management and fraud controlimplementation of concessionaires among Universities in Davao City, thisresearch design was the most suitable to use as stated on the writings ofCreswell (2014). He mentioned that this research design is used by