Ms, Sue is the principal accounting officer of Koss Corporation. At Koss Corporation Ms. Sue embezzled $31 million over 5 years to fund her lavish lifestyle. This was a material amount in relation to a net income of $5 million. The fraud was not detected by the auditors. Ms. Sue used wire transfers from the company account to her AMEX card, company manual checks, and traveler's checks drawn on the company's account to fund her purchases. The stealing was concealed by overstating assets and the cost of sales and understating liabilities through the collusion of two employees in the accounting department. At the time Ms. Sue was arrested, more than 22,000 items were confiscated from her home that had been purchased using Koss Corporation funds. Below are a few examples taken from the court complaint filed. AMEX payment for: $127,400 from Malabar Jewelers $255,000 from Georgio-Armani, and $1,358,000 from Valentina Boutique clothing store Required Questions: 2 points each: 1. Is this fraud, a fraudulent financial reporting, or an asset misappropriation of assets? Explain 2. Ms. Sue came from a wealthy family so the theft was not necessary to live comfortably. What incentive, opportunity, and/or rationalization/attitude do you believe drove Ms. Sue to embezzle? Explain 3. What internal controls could Koss Corporation have had in place to prevent employee collusion in the first place? 4. Do you believe the auditors should be held liable for not detecting fraud when management attempts to hide fraud and there is employee collusion