- Apr 10, 2006
Navistar to-do list: Restate company financials, hire new auditor
Earlier this year, Navistar delayed the filing of its annual report and blamed it on accounting errors by its auditor. Now, the truckmaker has stated that it will fire Deloitte and Touche and will retain the services of KPMG for its auditing needs. The relationship with Deloitte went back nearly a century.
Navistar has stated that it will be restating its financials for 2002 through 2004 and for the first three quarters of 2005. The difficulties come about from the timing of receivables, costs related to warranty coverage that was offered outside of the official coverage period, and some transactions at one of Navistar's foundries.
General Motors, another one of the companies that Deloitte audits, has had a bit of its own accounting troubles as of late. The auditing company has apparently come under fire for its consulting work in recent years due to concerns about conflict of interest.
[Source: Reuters via Yahoo Business]