sachdeva

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.

The news keeps getting worse at embattled stereo-headphone maker Koss Corp. The Milwaukee company now fears that the amount that disappeared from its coffers is closer to $31 million, according to a filing by CEO Michael Koss with the U.S. Securities Exchange Commission. The company last month...