Ford 2004 Annual Report Download - page 94

We have completed an integrated audit of Ford Motor Company’s 2004 consolidated fi nancial statements and of its internal
control over fi nancial reporting as of December 31, 2004 and audits of its 2003 and 2002 consolidated fi nancial statements in
accordance with the standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits,
are presented below.
Consolidated fi nancial statements
In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of income, of stockholders’ equity
and of cash fl ows present fairly, in all material respects, the fi nancial position of Ford Motor Company and its subsidiaries at
December 31, 2004 and 2003, and the results of their operations and their cash fl ows for each of the three years in the period ended
December 31, 2004 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion,
the accompanying sector balance sheet and the related sector statements of income and of cash fl ows, presented for purposes of additional
analysis, present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated
fi nancial statements. The consolidated and sector fi nancial statements (collectively, the “fi nancial statements”) are the responsibility of the
Company’s management. Our responsibility is to express an opinion on these fi nancial statements based on our audits. We conducted our
audits of these fi nancial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are
free of material misstatement. An audit of fi nancial statements includes examining, on a test basis, evidence supporting the amounts and
disclosures in the fi nancial statements, assessing the accounting principles used and signifi cant estimates made by management, and
evaluating the overall fi nancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 9 to the fi nancial statements, on January 1, 2002, the Company adopted SFAS 142, “Goodwill and Other
Intangible Assets.” As discussed in Note 2 to the fi nancial statements, on January 1, 2003, the Company adopted Statement of
Financial Accounting Standards No. 148, “Accounting for Stock-Based Compensation – Transition and Disclosure.” As discussed in
Note 16 to the fi nancial statements, on July 1, 2003, the Company adopted Financial Accounting Standards Board Interpretation No.
46, “Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51.”
Internal control over fi nancial reporting
Also, in our opinion, management’s assessment, included in Management’s Report on Internal Control Over Financial Reporting
in this Annual Report, that the Company maintained effective internal control over fi nancial reporting as of December 31, 2004 based
on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), is fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, the Company
maintained, in all material respects, effective internal control over fi nancial reporting as of December 31, 2004, based on criteria
established in Internal Control – Integrated Framework issued by COSO. The Company’s management is responsible for maintaining
effective internal control over fi nancial reporting and for its assessment of the effectiveness of internal control over fi nancial reporting.
Our responsibility is to express opinions on management’s assessment and on the effectiveness of the Company’s internal control over
fi nancial reporting based on our audit. We conducted our audit of internal control over fi nancial reporting in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over fi nancial reporting was maintained in all material
respects. An audit of internal control over fi nancial reporting includes obtaining an understanding of internal control over fi nancial
reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and
performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis
for our opinions.
A company’s internal control over fi nancial reporting is a process designed to provide reasonable assurance regarding the reliability of
fi nancial reporting and the preparation of fi nancial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over fi nancial reporting includes those policies and procedures that (i) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly refl ect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of fi nancial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance
with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
fi nancial statements.
Because of its inherent limitations, internal control over fi nancial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
PricewaterhouseCoopers LLP
Detroit, Michigan
March 9, 2005
TO THE BOARD OF DIRECTORS AND STOCKHOLDERS FORD MOTOR COMPANY:
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM