Koss Corporation Ability
Koss Corporation Ability To Regain Share Holder Confidence
September 18, 2012
Abstract
This paper will address the economics challenges of Koss Corporation. Based in Milwaukee, Wisconsin, Koss Corporation designs, manufactures, and sells stereo headphones and related accessory products. This report will focus on the ability of Koss to regain consumer and shareholder confidence since the reported $34 million embezzlement by the former vice president of finance from 2004 thru 2010. Koss will direct its efforts in four directions: corporate responsibilities, training, employee morale, and future company recommendations that demonstrate financial, moral and ethical values.
Koss executives are throwing themselves at the feet of their investors and customers, begging for mercy and promising to do better. However, it will require more than apologizes to settle the $34 million dollar embezzlement by the former vice president of finance. The executive team of Koss must establish an aggressive training plan that demonstrates fiscal responsibility, restores the faith of shareholder, employees and customers that ensures investors the demand of future innovation will meet the company’s product supply. Koss Corporation said it maintained a system of disclosure controls and procedures that were designed to and believed to provide reasonable assurance that information, which is required to be timely, disclosed, is accumulated and communicated to management in a timely fashion. (Finance, 2010) Furthermore, although numerous actions were taken beginning in late December 2009 following the discovery of the unauthorized transactions, including changes relating to the Company's banking procedures and certain other internal policies and procedures, as well as the other actions described in the Explanatory Note. The Company implemented no formal changes in the Company's internal control over financial reporting during the
September 18, 2012
Abstract
This paper will address the economics challenges of Koss Corporation. Based in Milwaukee, Wisconsin, Koss Corporation designs, manufactures, and sells stereo headphones and related accessory products. This report will focus on the ability of Koss to regain consumer and shareholder confidence since the reported $34 million embezzlement by the former vice president of finance from 2004 thru 2010. Koss will direct its efforts in four directions: corporate responsibilities, training, employee morale, and future company recommendations that demonstrate financial, moral and ethical values.
Koss executives are throwing themselves at the feet of their investors and customers, begging for mercy and promising to do better. However, it will require more than apologizes to settle the $34 million dollar embezzlement by the former vice president of finance. The executive team of Koss must establish an aggressive training plan that demonstrates fiscal responsibility, restores the faith of shareholder, employees and customers that ensures investors the demand of future innovation will meet the company’s product supply. Koss Corporation said it maintained a system of disclosure controls and procedures that were designed to and believed to provide reasonable assurance that information, which is required to be timely, disclosed, is accumulated and communicated to management in a timely fashion. (Finance, 2010) Furthermore, although numerous actions were taken beginning in late December 2009 following the discovery of the unauthorized transactions, including changes relating to the Company's banking procedures and certain other internal policies and procedures, as well as the other actions described in the Explanatory Note. The Company implemented no formal changes in the Company's internal control over financial reporting during the