Koss Corp. (KOSS) said that following the discovery of unauthorized financial transactions, Sujata Sachdeva, the company's Vice President of Finance and Secretary, has been terminated. Sachdeva served as the company's Principal Accounting Officer. Also, two members of the company's accounting staff who served under Sachdeva were placed on unpaid administrative leave.
The scope of the company's previously disclosed internal investigation of unauthorized financial transactions has been expanded to include fiscal years since 2006 and to the present. Preliminary estimates indicate that the amount of unauthorized transactions since fiscal year 2006 through the present may exceed $20 million, but at this point the company and its advisors cannot assess the potential impact on its financial statements or identify the extent that specific fiscal periods may be affected. Nor can the Company and its advisors yet assess the extent of the possible offsets through insurance, asset recoveries and other mechanisms related to the unauthorized transactions.
As a result, the company has concluded that its previously issued financial statements at least since the end of its 2006 fiscal year should no longer be relied upon. The company plans to restate its financial statements for such periods as further investigation indicates.
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