Variable interest entities were discussed in the chapter including an
Variable interest entities were discussed in the chapter, including an Auditing in Action Exhibit for Ford Motor Company. Why does consolidating the VIEs for which Ford Motor Company owns or controls less than a 50% interest seem to be an accounting treatment that differs from the typical treatment for consolidations? What would the audit procedures be for the consolidation of these VIEs? About which assertions would the auditor be concerned in addition to the proper accounting of the VIEs selected by management for consolidation?

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