III. Answer the following questions.

1. What are the purposes of accounting system?

2. What is the accounting organization responsible for?

3. How are asset protection devices used?

4. What is the task of internal auditors?

5. Why is the technique of processing data through electronic computers used?

IV. What meaning have the following word combinations?

Operating documents, the company's assets, tax returns, reimbursement of costs, employee payrolls, asset protection devices, unobserved thefts, past transactions, fictitious data, predetermined standard.

V. Complete each sentence with a phrase from the box.

accounting systems, past transactions, tax returns, internal auditors, payrolls

1. … are designed to provide information that managers and outsiders use in decision making.

2. Accounting systems provide data for company …

3. Accounting organizations prepare employee …

4. The task of … is to see whether prescribed data handling and asset protection procedures are being followed.

5. Examining samples of … for accuracy and fidelity is the task of internal auditors.

6. Providing data for use in the completion of the company’s … is the concern of tax accounting.

VI. Read the text and answer the question:

“What is the task of public auditing?”

Audit

Audit is examination of the records and reports of an enterprise by accounting specialists other than those responsible for their preparation. Public auditing by independent accountants has acquired professional status and become increasingly common with the rise of large business units and the separation of ownership from control. The public accountant performs tests to determine whether the management's statements were prepared in accord with acceptable accounting principles and fairly present the firm's financial position and operating results; such independent evaluations of management reports are of interest to actual and prospective shareholders, bankers, suppliers, lessors, and government agencies.

In English-speaking countries, public auditors are usually certified, and high standards are encouraged by professional societies. Most European and Commonwealth nations follow the example of the United Kingdom, where government-chartered organizations of accountants have developed their own admission standards.

VII. Read the text. Divide it into paragraphs. Give the title for each part. Retell the text. Bookkeeping

Bookkeeping is the recording of the money values of the transactions of a business. Bookkeeping provides the information from which accounts are prepared but is a distinct process, preliminary to accounting.

Essentially bookkeeping provides two kinds of information: (1) the current value, or equity, of an enterprise and (2) the change in value-profit or loss-taking place in the enterprise over a given period of time. Management officials, investors, and creditors all require such information: management in order to interpret the results of operations, to control costs, to budget for the future, and to make financial policy decisions; investors in order to interpret the results of business operations and make decisions about buying, holding, and selling securities; and credit grantors in order to analyze the financial statements of an enterprise in deciding whether or not to grant a loan.

Although bookkeeping procedures can be extremely complex, basically there are two types of books used in the bookkeeping process – journals and ledgers. A journal contains the daily transactions (sales, purchases, and so on), and the ledger contains the record of individual accounts. The daily records from the journals are entered in the ledgers. Each month, as a general rule, an income statement and a balance sheet are prepared from the trial balance posted in the ledger. The purpose of the income statement or profit-and-loss statement is to present an analysis of the changes that have taken place in the ownership equity as a result of the operations of the period. The balance sheet shows the financial condition of a company at a particular date in terms of assets, liabilities, and the ownership equity.