Koss Corporation is one of the leading companies in making stereo headphones, and other related accessory products. The company was found in 1953 and its headquarter is in Milwaukee, Wisconsin. The company has manufactured the high quality headphones, Bluetooth speakers, computer headsets, noise canceling headphones, and other entertainment products in the United States that were sold at some stores nationwide. Koss’s products were widely accepted by consumers in early 1960s because of the baby booming generation during that period. Its sale and profit grew significantly with profit after tax at around 10%. Koss Corp. was published 1967 with sales around $1 million. Koss Corp’s earning was declined during 1970s and 1980s. It recovered its sales lately in 1990s after changing the management …show more content…
As a part of public traded company, Koss was required to have an audit financial statements filed with SEC and released to financial users. The purpose of audit procedure is to give a reasonable assurance on company’s financial reports and detects material misstatement to protect the company’s assets. However, Koss Corp. faced the big embezzlement, which was discovered in 2009 by the fraud of Vice President of Finance, Sujata Sue Sachdeva who worked for the company from 1989 and Julie Mulvaney, a Senior Accountant who helped her in this fraud scheme. Sachdeva started her career as a temporary position and was promoted to Vice President of Finance within a year. Sachdeva stole over $31 millions from company’s account during five fiscal years from 2005 to 2009. To perpetrate into the fraud, Sachdeva authorized at least 206 wire transfers from Koss bank accounts to pay for her American Express credit card bills and issued over 500 cashier’s checks from company accounts to pay for her personal expenses. Sachdeva and Mulvaney easily stole company’s assets because they are both doing bookkeeping and reconciliation. Sachdeva always replied on Mulvaney’s reconciliation and both
...not have occurred (again the out-dated accounting system shortfall). Further, analytical procedures could be used to compare budgets / forecasts to actual results and variations could be investigated (i.e. expenses higher than anticipated or profit less than anticipated). The following is article by Tracy Coenen is more critical of KOSS' management than of the auditor, Grant Thorton. She contends that while auditor should have caught this fraud, management is more to blame because of not addressing internal control issues. http://www.sequenceinc.com/fraudfiles/2010/01/koss-corp-fraud-defending-grant-thornton-no/
Shelly Zumaya (2220 East Hennepin Avenue, Minneapolis, MN 55413) is the president and sole shareholder of Kiwi Corporation (stock basis of $400,000). Incorporated in 2003, Kiwi Corporation’s sole business has consisted of the purchase and resale of used farming equipment. In December 2011, Kiwi transferred its entire inventory (basis of $1.2 million) to Shelly in a transaction described by the parties as a sale. According to Shelly and collaborated by the minutes of the board of directors, the inventory was sold to her for the sum of $2 million, the fair market value of the inventory. The terms of the sale provided that Shelly would pay Kiwi Corporation the $2 million at some future date. This debt obligation was not evidenced by a promissory note, and to date, Shelly has made no payments (principal or interest) on the obligation. The inventory transfer was not reported on Kiwi’s 2011 tax return, either as a sale or a distribution. After the transfer of the inventory to Shelly, Kiwi Corporation had no remaining assets and ceased to conduct any business. Kiwi did not formally liquidate under state law. Upon an audit of Kiwi Corporation’s 2011 tax return, the IRS asserted that the transfer of inventory constituted a liquidation of Kiwi and, as such, that the corporation recognized a gain on the liquidating distribution in the amount of $800,000 [$2 million (fair market value) - $1.2 million (inventory basis)]. Further, because Kiwi Corporation is devoid of assets, the IRS assessed a tax due from Shelly for her gain recognized in the purported liquidating distributi...
Target must compete vigorously and fairly in the marketplace using our independent judgment to make the best decisions for the Company.
Adopted from: CVS Caremark company website. Vision Statement: We strive to improve the quality of life. Mission Statement: We provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers. Proposed Vision Statement: CVS Caremark’s vision is to improve the quality of life through convenient and cost-efficient offerings. Proposed Mission Statement: At CVS Caremark, our mission is to provide quality products and services through our pharmaceuticals and consumer products.
Madura, Jeff. What Every Investor Needs to Know About Accounting Fraud. New York: McGraw-Hill, 2004. 1-156
management should always strive to power downward to empower folks at all levels. A manager
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
The Consumer and Industrial Products, Inc a company where their headquarters is based in the United States , also doing business internationally with facilities in Europe, Asia and South America. They are a manufacturing company what produced well known products to individuals and industries. This company is experiencing a great deal of trouble with their internal Payable Audit System (PAS) and how it would purchase goods; receive goods and pays for them. They are challenged with the redundancy and the lack of productivity to their system. They were finding ways to lower costs and eliminating steps in how these processes are getting accomplished. They decided that they needed to change their system and the way they did things at their business. There are some people, their roles and departments that will be closely involved with the process of this project. Some of these important roles will come from Ted Anderson director of disbursements, Peter Shaw the user project manager and Linda Watkins project director for the Payable Audit System (PAS). In addition, the Steering Group and the IS management department will have some important roles to the project too. Finally, there will be several major problems with the development of the project and how the one person would deal with these issues.
Don Bradish was recently hired to fix scheduling issues with the new company in which he works, The Fitzgerald Machine Company. There are a few relevant facts that were given in this case study. The first and foremost fact is Mr. Bradish was hired because the company is having issue with their scheduling. This is important because he comes in with a relevant degree and years of experience with a reputable company. He is going to be looked for to find a solution to the issue outlined in the case study. The second relevant fact in the case study is that the company that The Fitzgerald Machine Company is working with is having labor issues. This is considerable because the $300,000 order is a considerably large
Corections corporation of America was started in 1980 by Don Hutto, Tom Beasley, and Dr. Robert Crants. They created the first private prison that was able to save the government and tax payer’s money. They did so by industrializing the industry and specializing in the industry. Since 1980 they have become one of the largest prisons in America. CCA define itself as “being the first and leading corrections corporation in America that partners with the government agencies Federal Bureau of Prisons, Immigration & Customs Enforcement, and the Unites States Marshals Service. CCA considers itself an innovative and cost efficient business that provides safe, nurturing, educating, and rehabilitating service facilities. “ (We Are CCA, 2013) CCA aims to be the best corrections company in the United States. I think that CCA mission statement applies for both present and future, they want to be the best and will need to continuously be innovative in order to obtain the results and benefits for all people that are affected. “the company states that it is the fifth-largest corrections organization only outdone by the federal government and three states (Who We Are, 2013). The corporation is proud to be a private corrections company but with close ties to
Ford Motor Company Introduction This paper will address an analysis of the key success factors in strategic planning for the Ford Motor Company, including planning, product offerings, marketing and sales. The paper will also include financial characteristics and a competitive analysis of the Ford Motor Company. Ford Motor Company The Ford Motor Company inspired a manufacturing revolution with its mass production assembly lines in the early 20th century. Ford and Lincoln are one of the world's most well known automotive brands, most known for the Ford Mustang, and F-Series pickup trucks.
YakkaTech Corp. is growing IT services firm which mainly installs and upgrades enterprise software systems and related hardware. They have grown and consolidated as well as become more efficient at their business but this isn’t without growing pains. Their employees seem to lack job satisfaction and their customers feel that the employees “seem indifferent to their problems.” The company’s voluntary quit rates have risen above the industry average while management raises pay rates in the hopes that customer service quality and productivity would improve. However, customer service complaints and productivity remain low and employee moral seems to be low as well.
Due to such lack of monitoring, management continued to be unaware of such transactions that continued to impact the company negatively. This provided the Rigas family many opportunities to override controls since the lack of corporate governance enabled the decisions to be made by Rigas family without oversight. For example, the article “Adelphia Officials are Arrested, Charged with ‘Massive’ Fraud” discuses how Timothy Rigas had to limit himself to $1 million a month of compensation that was withdrawn from the company for personal use. All decisions were continuously made by such members of the family, in which case for Adelphia, was the team of management. With the lack of controls creating opportunity, they were free to do what they wished- which is something they took incredible advantage
In today’s day and age, there is a lot of news that is related to corporate accounting fraud as companies intentionally manipulate their financial statements to show a better picture of their financial health. The objective of financial reporting is to provide financial information about a company to its various stakeholders such as investors and creditors so that these stakeholders can make decisions accordingly. Companies can show a better image of their financial well being by providing misleading information. This can be done by omitting material information from the books or deceitful appropriation of assets such as inventory theft, payroll fraud, check forgery or embezzlement. Fraudulent financial reporting will have an effect on the This includes but is not limited to; check forgery, inventory theft, cash or check theft, payroll fraud or service theft.