Contemporary Auditing 10th Edition by Michael Knapp

Exercise 12

This case includes the following quote from a former PCAOB official: "The [audit] firm tends to be the subject of disciplinary action when there is a failure of oversight or supervision. Where a particular partner simply makes an error but the firm was not negligent, only the party may get named in the proceeding." Do you believe that Deloitte, in addition to Linden and Anderson, should have been sanctioned by the PCAOB in connection with the 2003 Navistar audit Justify your answer.