Deloitte in Trouble Again: PCAOB Goes After the Big D for Navistar Audit FAIL
Our friends at Deloitte show us how to royally screw up an audit in 3 simple steps.
The Public Company Accounting Oversight Board said Wednesday it has fined a Deloitte & Touche partner $75,000 for allegedly helping Navistar International Corp. (NAV) and unit Navistar Financial Corp. avoid restating 2003 financial results.
This marks the second time the U.S. oversight board for public company auditors has ever assessed a civil money penalty against an individual accountant since it was created by Congress in 2002. The other fine was also against a Deloitte partner for signing off on Navistar's erroneous 2003 financial results.
In the latest case, the PCAOB said Chicago-based Deloitte accountant Thomas J. Linden has consented to pay the $75,000 fine without admitting or denying the allegations. He is also barred from being associated with a registered public accounting firm, but can petition the board to be reconsidered in two years. He no longer works for Deloitte, and the company was not named in the proceeding.
A lawyer for Linden declined to comment, and a spokeswoman for Deloitte said the company is "pleased that Mr. Linden resolved this matter with the PCAOB."
According to the PCAOB, Navistar Financial discovered in 2003 it had $19.7 million worth of errors in its financial statements, which boosted its earnings, revenue and assets.
The parent company, however, had already announced its fourth-quarter earnings when the overstatement was discovered.
The PCAOB said that Linden "helped Navistar International Corporation avoid the possibility of a revision of its reported results."
The interesting part is that the PCAOB has only levied monetary penalties against accountants for poor practices (if that's even the right phrase here) three times, all of them against Deloitte staff members.
Red flag anyone?
Let's consult my SLGG Magic 8-ball to see if we should consider this "a trend"
SLGG Magic 8-ball, will Deloitte continue to get pounded by the PCAOB?
"YOU CAN COUNT ON IT"