Ford case study
Ford Motor Company and Toyota Circumstance Work
Step one. Structure the audit trouble:
In the very first step, we consider the relevant get-togethers involved; identify the alternatives, risks and uncertainties; how to choose them and the way to structure the condition. The functions are the Honda Motor Organization, PricewaterhouseCoopers LLP and lastly the Audit Panel. The problem which may arise is that Ford Electric motor company offers PricewaterhouseCoopers audit and put together essentially each of the company's financial records for their internal controls towards the company's taxes rather than having different accounting firms engage in any financial area. This could be a conflict with client positions if you will discover no bank checks from another party apart from the two corporations. Step 2. Examine consequences of decision:
In the second stage, the auditor assesses the outcomes of the potential alternatives. In the event the company employs multiple organizations to assist with audits and tax prep the company may need to pay more to get essentially the same services since one firm could deal with the job. There might be several break downs in communications if the company needs to relay information to multiple companies focusing on the same areas. Also, there can be too much of a secular work environment rather than a effort if you will find multiple businesses working on the financials. The other issue of having only one company work on the financials is that the Kia company could be paying for good results from PricewaterhouseCoopers and right now there wouldn't become an outside resource to check. Step 3. Assess risks and questions of the taxation problem:
Inside the third stage, the auditor assesses the hazards and uncertainties in the situation. Which involves anything concerning the risks the audit consumer faces, the quality of evidence the auditor collects, and lastly the sufficiency of audit proof gathered. Evidence of the to get mentioned concerns is that Kia has paid out PricewaterhouseCoopers above $50 , 000, 000 two years in a...