Free The White Collar Crimes Essay Sample
In the case of Koss Corp Company is against the former vice president of Finance after she was declared liable by the court for the loss of 31million dollars in the company. In this case it was right to hold the vice president in Finance liable as she had breached the contract. On the other hand the company also blames the company's auditors, Grant Thornton, who was serving at the moment the fraud was discovered. Such a crime is referred to a white collar crime whereby it is committed by a person who is least suspected to do so.
According to the FBI, America is well known for losing a lot of its money through the white collar crimes. Due to this, many companies are encouraged to practice interpersonal interaction with their members because the best way to monitor behavior is through interaction. Companies should avoid placing all their trust in those employees who have served them for long but should ensure personal interaction with them.
In the case above, firing the auditors just because they suspected them was not a solution. In any case, the Koss Corp Company should be liable for breach of contract with the auditors as they did not have a right to terminate the contract without reasonable action. Conversely, the auditors owed no obligation towards the company for their loss because they were just independent contractors and not agents. In this case the verdict was that the Grant Thornton auditors had no liability towards the company for the loss they incurred and if they were to be fired, the company should pay for all the work done. Companies should be more cautious of the white collar crimes which are least expected yet they come along with huge losses.
Diving deeper into the aftermath of the Koss Corp case, it's essential to explore the role of internal audits. Companies, in light of the prevalent white-collar crime scenario, should consider bolstering their internal audit functions. These audits serve as an additional layer of protection, helping identify irregularities before they escalate into significant financial losses. The FBI's stance on white-collar crimes underscores the need for collaborative efforts between law enforcement agencies and businesses. Establishing channels for reporting and sharing information can enhance the collective ability to detect and prevent such crimes. This cooperative approach goes beyond individual company initiatives and contributes to a broader network of vigilance.
In examining the termination of Grant Thornton's contract, the legal landscape surrounding contract termination gains prominence. Companies are encouraged to draft contracts with clear termination clauses to avoid potential legal entanglements. Understanding contractual obligations becomes paramount to ensure that actions taken align with legal frameworks. Expanding on the concept of personal interaction, companies should consider implementing ethical training programs. These programs go beyond surveillance and actively instill a sense of ethical responsibility among employees. Investing in ongoing education about ethical conduct can create a culture of integrity, reducing the vulnerability to white-collar crimes.
In conclusion, navigating the complexities of white-collar crimes requires a multifaceted approach. Enhancing internal audits, fostering collaboration with law enforcement, clarifying contractual obligations, and investing in ethical training collectively contribute to a more resilient defense against unforeseen financial losses. As companies evolve to meet these challenges, a comprehensive strategy becomes paramount in safeguarding financial interests.