Koss Fraud: We didn’t bother to look at the endorsements on our own checks, but Grant Thornton should have!
The latest news in the Koss Corporation fraud committed by ex-VP of Finance Sue Sachdeva is a lawsuit filed by the company against Sachdeva and auditors Grant Thornton. It’s unlikely that the company will collect much from Sachdeva, but the auditors are a great target because they have deep pockets (especially in the form of [...]
“Monitoring” That Works
Guest Post by Ronald Kral, MBA, CPA, CMA Managing Partner of Candela Solutions LLC All organizations use some form and degree of monitoring in reaching strategic, operational, reporting and compliance objectives. Yet, many organizations do not fully leverage the power of monitoring in reaching objectives or in supporting their regulatory control assessments. This article explores [...]
Update on Koss fraud
The story of the alleged $31 million fraud at Koss Corp by the company’s former VP of Finance, Sue Sachdeva, hasn’t gotten much air time over the last month or so. Aside from the usual class action lawsuits when there is a fraud discovered at a public company, the only bits of news that are [...]
Medifast changes auditors: Was Barry Minkow right when he criticized former auditors?
Last week, Medifast Inc. (NYSE:MED) announced that it changed auditing firms. The company previously used Bagell, Josephs, Levine and Company, and they were criticized for the choice of auditors by Fraud Discovery Institute and Sam Antar. FDI’s criticism was summed up in a press release: Expert’s letter sites possible stock-touting of Medifast (NYSE:MED) stock by [...]
Koss Fraud: Unrecorded revenue?
How does a company with about $40 million in annual revenue fall victim to a $31 million (or more) fraud by the VP of Finance? Simply, Koss Corp. gave Sue Sachdeva the keys to the castle. She apparently ran the company’s finance function with little oversight from anyone else. Koss has done something I think [...]
More fallout from Koss fraud, but Michael Koss stays on Strattec board
The latest news related to the $31 million fraud committed by Koss Corp.’s ex-VP of Finance Sue Sachdeva is activity at Strattec. Laughably, Michael Koss was the chairman of Strattec’s audit committee since 2003. In January, he was removed as head of that committee, but still remains on the board and on the audit committee. [...]
Koss says they’ll be more profitable now that their VP of Finance isn’t stealing $31 million from them
Koss Corporation (NASDAQ:KOSS) filed a 10-Q with the Securities and Exchange Commission yesterday that pointed out the obvious… Now that their VP of Finance isn’t stealing at least $31 million from them, they think they’ll be more profitable. The company says they’ll be restating the financial statements for the fiscal years ended June 2008 and [...]
Compliance Week article: Koss Fraud Spotlights Small Filers’ Internal Control Issues
An article in today’s Compliance Week, Koss Fraud Spotlights Small Filers’ Internal Control Issues (subscription required), quotes me on internal controls and the auditors as it relates to the huge fraud committed by VP of Finance Sue Sachdeva at Koss Corp (NASDAQ:KOSS). I’m no fan of Sarbanes-Oxley because I believe it was ridiculously expensive, and [...]
Sachdeva and Koss Corp.: The indictment, the clothes, and the auditors
The case of the alleged theft of at least $31 million by Sue Sachdeva from Koss Corp. (NASDAQ:KOSS) carries on. Last week, Sachdeva was charged with 6 counts of wire fraud. Experts are saying this indictment came much faster than usual, as the Feds usually spend much more time thoroughly investigating cases. They’re speculating that [...]
The move to IFRS: All about greed
Professor David Albrecht wrote a great piece today about the push to move from U.S. GAAP (Generally Accepted Accounting Principles) to IFRS (International Financial Reporting Standards). His conclusion? The push to switch is motivated purely by greed. Accounting standards exist so that financial statements have some uniformity. Users of financial statements outside of the companies [...]
