Ford 10 K Toyota 20 F a What are the key acquisition
Ford 10-K, Toyota 20-F
a. What are the key acquisition and inventory cycle accounts for Ford? What are the critical accounting policies for these accounts?
Ford 10-K, Toyota 20-F
b. Compare Ford and Toyota’s footnotes on inventory. Calculate the percentage of finished products that each company holds in inventory. What inferences do you draw from this analysis? How could this ratio be used to understand slow-moving inventory, for example, by geographic region or product line?
c. Think creatively, and develop ratios or comparisons that would help you understand this transaction cycle for these automotive companies. In addressing this question, it will be helpful to tailor the “usual” analytical procedures to this unique industry and business setting.
Ford 10-K
d. Ford lists a variety of risk factors associated with its business. Review those and identify which relate most to the acquisition and inventory cycle. What evidence might the auditor gather to understand how those risks may affect the financial statement line items associated with the acquisition and inventory cycle?
e. As an auditor, what is your obligation regarding the statements that management makes in its management discussion and analysis?

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