Thursday, January 7, 2010
CFO.com reports on the alleged $31 million embezzlement by the former vice president--finance of Koss Corp., a small public corporation that has been exempt from the Sarbanes-Oxley 404(b) requirement that its auditor evaluate its internal controls. Small business advocates have argued that 404 is too costly for small businesses, and the regulatory reform bill that passed the House in December would make the exemption permanent. Would better internal controls have prevented the alleged embezzlement? CFO.com, Fraud Case Feeds Sarbox-Exemption Critics.