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Assignment
Koss Corporation (Ticker: KOSS), a manufacturer of headphones, was subject to a significant case of fraud perpetrated by its Principal Accounting Officer. Research and discuss the prevalent facts of this high-profile case, using the following questions as a guide:
• How long did the fraudulent activities persist and how much was the total loss due to fraud?
• What were the chief administrative and organizational structure shortcomings that provided motivation, rationalization, and opportunity for the Principal Accounting Officer?
• What is your perception of the company's stock performance since the fraud was publicized? Does the company appear to have recovered?
• Name a single internal control procedure that could have prevented the opportunity for the Principal Accounting Officer to commit fraud. Do not duplicate those procedures proposed by classmates.
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