KOSS CORPORATION 3
The independent auditor at failed to provideinformation or notice the financial wire transfers that were beingdone in the corporation. This puts the auditors at a position ofresponsibility. Grant Thomton LLP were the official independentauditors in the corporation. However, as the reading indicates, theywere suspended for their failure to identify the financial fraud thatwas being conducted by Sujata (Johnstone et al., 2014). It is theresponsibility of the auditor to identify any misstatement onfinancial matters in any organization. Therefore, the auditors werepartly to blame for the huge loss of revenue in the organization.This is enhanced by the fact that the embezzlement was going on for along time. The vice president of finance and secretary of thecorporation, Sujata, Sachdeva, was solely responsible for theembezzlement in the corporation (Sandretto, 2011). Sujata had theresponsibility of maintaining integrity, honesty and openness. Shehad the responsibility of protecting the wealth of the corporation.
The directors, together with the management have the responsibilityof oversight in order to ensure that there is not money that is lost.The embezzlement of the funds has persisted for a long time and itwould have been prudent if the managers and the directors haddetected the embezzlement earlier enough. Therefore, this is a clearindication that the management and the board of directors had a rolein the loss at .
must ensure that the any electronic fund transfershas the signatory of at least three of the directors and the chieffinance officer. This would ensure that no single individual wouldembezzle any funds without being noticed. The firm must also ensurethat it hires auditors who can identify any fraud in electronic moneytransfer. This would ensure that any fraud is noted as early aspossible and dealt with appropriately.
Sandretto, M. J. (2011). Cases in financial reporting. Mason,Ohio: South-Western.
Johnstone, K. M., Gramling, A. A., & Rittenberg, L. E. (2014).Auditing: A risk-based approach to conducting a quality audit.Mason, OH: South-Western Cengage Learnin
Koss Corporate history. and unauthorizedfinancial transactions. In ACP IAC CS Ebk for undergraduateaccounting capstone 1 year, 11th ed. Koss museum.