AccountingScandal

How to Spot Suspicious Quarterly Earnings

For many companies, meeting or beating quarterly earnings estimates matters more than anything else. All too often, the drive to perform bleeds into a temptation to cook the books. But astute investors can see behind the numbers to glimpse the truth. Here are a few of the major red flags.

Koss Corp: Anatomy of an Alleged Fraud

How does the alleged $31 million fraud at Koss Corp., a company with sales of no more than $45 million, go undetected for years? Blame management. It gave the employee charged with misappropriating funds far too much autonomy. And it never told auditors to do more than just the required audit.