You were asked to review the accounting details for a specific manufacturing segment for Ford Motor Company.
Question:
You were asked to review the accounting details for a specific manufacturing segment for Ford Motor Company. While Ford has stated numerous times that they are considering shutting down that portion of the business, they are waiting for your assessment of the losses to make that decision. In your review you find that the segment of the business has not seen a profit in the nine years it has been in operation but you know the manufacturing segment functions as an intangible asset contributing to the overall success of the company. If you explain to them that the losses are significant, it could mean you along with everyone else would lose your job. If you tell them that it is “worth” continuing, the leadership could easily question your assessment abilities. What would you do? Explain how your conversation would go, and what information you would present the leadership with to make the ultimate decision.
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley