SEC v. Koss Corporation
The SEC v. Koss Corporation case sheds light on the intricate relationship between auditors, such as Grant Thornton, and the companies they audit. Koss Corporation attempted to shift responsibility onto its auditors for failing to uncover the fraud within the company. This situation prompts a critical examination of the control environment and the pivotal role of management in maintaining effective internal controls. Choose 2 of the following discussion points to elaborate on:
- Discuss the key components of the control environment and their significance in preventing and detecting fraud.
- Evaluate how Koss Corporation’s control environment might have contributed to the failure in internal controls, leading to the fraud going undetected.
- Analyze the impact of a weak control environment on the auditor’s ability to fulfill their responsibilities effectively.
- Identify lessons that auditors, such as Grant Thornton, can learn from the SEC v. Koss Corporation case to enhance their effectiveness in uncovering fraud.
Your paper should be 2-3 pages in length and conform to APA guidelines
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-22138
