Case Study : Navistar International Corporation

1148 WordsJul 12, 20155 Pages
Navistar International Corporation “In my opinion, the Case would be improved by including the following summary” An American agriculture of the nineteenth century Cyrus McCormick, invented a company that produced farming equipment called McCormick Harvesting Machine Company. In 1902 his son Cyrus McCormick II merged the company with three competitors renaming it the International Harvester Company. By the late 1980’s the company had moved from producing farming equipment to manufacturing automotive products, trucks, and school buses. In the late 1980’s International Harvester company was renamed Navistar International Corporation. Over the years NIC changed and one of the most dramatic changes was the relationship with its longtime auditor Deloitte. (Knapp, 2015) In 2005, NIC was dissatisfied with a decision the independent audit firm made to replace an engagement Partner. Although, nearly complete with the Audit, the new Partner was not willing to rely on the finding of the previous Partner, which prolonged the audit (Weirich). Deloitte had been NIC auditor since 1908 and the business community was shocked to learn of the termination of their relationship. After 98 years as their accountants Navistar filed a lawsuit against Deloitte for 500 million dollars for allegations of malpractice that caused the manufacturing company to revise its financial statements. According to law360, “Navistar claimed that Deloitte accountants misrepresented them between the years of 2002

More about Case Study : Navistar International Corporation

Open Document