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(1) An introduction covering the background information of the case (2 paragraphs).
(2) Key issues of the case (about two pages).
Here you would identify and discuss the various accounting fraud that occurred at Navistar. I
would like you to discuss why Navistar’s auditors were unable to prevent them from engaging
in fraudulent activities. From an auditing standpoint, what audit procedures should Deloitte
have conducted to detect the fraudulent accounting by Navistar’s management? One way you
can approach this analysis is to identify the fraudulent accounting actions that occurred at
Navistar, and discuss the audit procedures that should have been followed to detect the fraud.
You will find some discussion of the omitted audit procedures in the case. However, you should provide additional insights based on our class discussions and from other sources such as your textbook and auditing standards.
(3)Conclusion (2 paragraphs)
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