Ford 2005 Annual Report Download - page 101

Ford Motor Company Annual Report 2005 98 Ford Motor Company Annual Report 2005 99
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders
Ford Motor Company:
We have completed integrated audits of Ford Motor Companyʼs 2005 and 2004 consolidated financial statements and of its internal
control over financial reporting as of December 31, 2005, and an audit of its 2003 consolidated financial 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 financial statements
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, of stockholdersʼ
equity and of cash flows present fairly, in all material respects, the financial position of Ford Motor Company and its subsidiaries at
December 31, 2005 and 2004, and the results of their operations and their cash flows for each of the three years in the period ended
December 31, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial
statements are the responsibility of the Companyʼs management. Our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these 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 financial statements are free of material misstatement. An audit of financial statements includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying
sector balance sheets and the related sector statements of income and of cash flows is presented for purposes of additional analysis and
is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
As discussed in Note 17 to the financial 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.” As discussed in Note 27 to the
financial statements, in the fourth quarter of 2005, the Company adopted Financial Accounting Standards Board Interpretation No. 47,
“Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No. 143.”
Internal control over financial reporting
Also, in our opinion, managementʼs assessment, included in Managementʼs Report on Internal Control Over Financial Reporting in
this Annual Report, that the Company maintained effective internal control over financial reporting as of December 31, 2005 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 financial reporting as of December 31, 2005, based on
criteria established in Internal Control - Integrated Framework issued by the COSO. The Companyʼs management is responsible for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over
financial reporting. Our responsibility is to express opinions on managementʼs assessment and on the effectiveness of the
Companyʼs internal control over financial reporting based on our audit. We conducted our audit of internal control over financial
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 financial
reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an
understanding of internal control over financial reporting, evaluating managementʼs 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 companyʼs internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A companyʼs internal control over financial reporting includes those policies and procedures that (i) pertain to the