Government Probing Deloitte's Audit of Navistar
The Public Company Accounting Oversight Board, a regulatory agency created by the Sarbanes-Oxley Act of 2002, is investigating Deloitte & Touche’s audit of truck and engine manufacturer Navistar International, Bloomberg News reported Friday.
Bloomberg said the investigation was the first probe of the so-called “Big Four” accounting firms: Deloitte, Ernst & Young, PricewaterhouseCoopers and KPMG LLP.
The regulatory board issued an investigation order in May, Bloomberg News reported.
In December, Navistar restated its financial results for the 2004 fiscal year, as well as the 2002 and 2003 reporting periods, Bloomberg said. A company spokesman said the restating of results came after the PCAOB told Deloitte that the truck maker’s accounting was incorrect, Bloomberg reported.
Earlier this year, Navistar said the Securities and Exchange Commission had begun an investigation into the restatement. (Click here for previous coverage.)
