Case Study : Navistar International Corporation

An implicit theme of this case that I want students to recognize is the contrast between the persistent and vigorous efforts of David Sokol to “get to the bottom” of the suspicious items he uncovered in JWP’s accounting records versus what Judge William Conner referred to as the “spinelessness” of JWP’s auditors. The JWP audits were similar to most problem audits in that the auditors encountered numerous red flags and questionable entries in the client’s accounting records but, for whatever reason, apparently failed to thoroughly investigate those items. On the other hand, Sokol refused to be deterred in his investigation of the troubling accounting issues that he discovered. The relationships that existed between members of JWP’s accounting staff and the Ernst & Young audit team apparently influenced the outcome of the JWP audits. Of course, the Sarbanes-Oxley Act of 2002

This $490 million came from the netting manipulation when they offset their expenses with unrelated gains on the sale of assets. The geography manipulation allowed them to move millions of dollars to different sections of the income statement to “make the financials look the way we want to show them” said James Koenig, one of the primary forces behind the scandal. However, none of the fraudulent activities would have gone unknown for so long without the aid of the auditors, Arthur Anderson LLP, involved with Waste Management.

CVS Health Corporation is an integrated pharmacy healthcare and head quartered in Woonsocket, RI. The President and CEO of CVS is Larry J. Merlo. The company has three segments, Pharmacy services, Retail pharmacy and Corporate. CVS was previously known as Caremark Corporation and the name was changed to CVS on September 3rd 2014.

To start with, upon learning of the error in estimation made by Ligand, Deloitte inherited the responsibility to recommend the correction of the previous year’s financial statements. This responsibility stems from two main facts. First, auditors are Certified Public Accountants and as such, have a responsibility to serve the best interests of the public. (Louwers 583) By not recommending a restatement of the financial statements, Deloitte would be knowingly allowing the public to rely on information that is not accurate. Second, Deloitte should recommend the restatement to ensure that they are exercising due professional care, the lack of which could lead to lawsuit or penalty (which they eventually got).

Google Scholar requires some strict guidelines for inclusion. ASIB will need to ensure all documents are formatted correctly on their website to be considered for inclusion on Google Scholar. I have outlined some of the requirements below. For more detailed information on specific requirements, visit Google Scholars website at http://www.google.com/intl/en/scholar/inclusion.html#overview.

During the 1990’s the Carrier Corporation was working on a highly innovative new global chiller under 300 kW, called Aquasnap. The new design would integrate a Hydronic Kit inside the chiller, all previous versions required installation of the kit outside the chiller. While the new design would cost less, require less installation time, and save floor space, it did raise some concerns. Carrier was becoming deeply invested in the design and was worried if the world was ready for such an innovative product. The following sections answer some of the issues; what should Thierry Jomard’s (lead engineer) decision be, should the hydronic kit be integrated and how does Carrier address future environmental regulations, what are the

1) Evaluate HTC’s performance as described in the case. What are its competitive assets and liabilities?

Navistar was a worldwide leader in the manufacturing medium and heavy trucks for 17 consecutive years in the North American market. Navistar’s premium conventional trucks were produced at the Chatham assembly plant, which had almost 14 years experience in producing Navistar’s premium line since 1983. Navistar had forecasted increased industry demand for heavy and medium trucks in 1998. Especially, the Chatham assembly plant’s customers had strict requirements to the truck’s quality and delivery date. As the assembly supervisor in Chatham, Andy Ramsz encountered the interior trim quality and delivery problem for the truck. Andy had begun to gather data on the interior trim supply problem and he got the crucial reasons

This is a case study analysis on Nissan Canada Inc. (NCI) and its plan to move from a “make to stock” to a “make to order” process and the implementation of NCI’s Integrated Customer Ordering Network (ICON). Involved in the implementation of ICON, NCI is faced with several challenges in the conversion of its outdated ordering process to Manugistics, an Enterprise Resource Planning (ERP) system. (Hunter, 2007)

Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.

Telstra Corporation Limited (known as Telstra) is Australia 's biggest and leading telecommunications and media organization operating since 1901, which creates and runs telecommunications systems and markets voice, mobile, web access, pay TV and other entertainment items and administrations. In Australia Telstra provide 16.9 million mobile services, 7.2 million fixed voice services and 3.3 million retail fixed broadband services and that’s why we have an global existence covering 22 countries, including China.

Assigned auditors were more than aware of the accounting misrepresentation of financial statements, overstating net income. Still instead of walking away from the client and resign, Andersen in pursuing short-term goals stayed with the company and moreover played by the Giant’s rules. More and more accounting firms at that time started to provide consulting services along with auditing to the same companies which always indicates a conflict of interests. Auditors are the guardians and rules players where consultants are giving advices and showing how to avoid some accounting oversights. Andersen also in order to make good profits stepped on the side of combining two contradicting to each other services. Waste Management had lots of former Arthur Andersen employees which also led to close ties between two companies. That situation undoubtedly led to inability to turn down fraudulent accounting practices Waste Management was exercising at that time for a long period of time.

1. Evaluate the economics of Gulf's exploration and development program in net present value terms. How do Gulf's outlay for exploration and development compare to cash returns Gulf generates from these activities.

Alibaba currently operate mobile and online commercial center in the form of wholesale trade and retail trade, cloud computing and other information technology services, for example, Taobao, Tmall, Juhuasuan, Aliyun, Ant Financial Services Group, Cainiao Logistics, AliExpress, Alibaba.com, 1688.com and Alimama.

The Vodafone case study has given us a good overall view of the company and shown the companies good and bad points, whilst showing the mobile phone business as a whole and explaining the ups and downs of the industry.