7. Translate into English.

1. Якщо фінансовий менеджер не вірно складе фінансовий план, фірма має малий шанс вижити, незалежно від її ефективності.

2. Великий вплив на прибуток компанії мають її інвестовані грошові кошти.

3. Інформація облікової звітності про планування, отримання фондів, управління податками а також дані про результати аудиторських перевірок є дуже важливою для фінансового менеджера.

4. Однією із функцій фінансів є повернення безнадійних та прострочених боргів.

5. Як правило малі та середні фірми мають менше грошових коштів та менший кредитний резерв ніж великі корпорації.

6. Жоден менеджер не може ефективно управляти фінансами, якщо він не розуміється у бух обліку.

Establishing Financial Control

Pre-reading task:

What do you know about financial control?

What are possible objects of financial control?

Read the text and make up three sentences that the best summarize each paragraph.

ESTABLISHING FINANCIAL CONTROL

Financial control means the actual revenues, costs, and expenses (including the cash flow projections) are periodically reviewed and compared with projections. Deviations can thus be determined and corrective action taken. Such controls provide feedback to help reveal which accounts, which departments, and which people are varying from the financial plans. Such deviations may or may not be justified. In either case, some financial adjustment to the plan may be made.

Taxes represent an outflow of cash from the business and must be paid. Therefore, they too fall under the scrutiny of finance. As tax laws and tax liabilities have changed, finance people have taken on the increasingly important responsibility of tax management. Tax management is the analyzing of tax implications of various managerial decisions in an attempt to minimize the taxes paid by the business. Businesses of all sizes must concern themselves with tax responsibilities.

Finally, often someone in the finance department serves as an internal auditor. It's the internal auditor who checks on the journals, ledgers, and financial statements prepared by the accounting department to make sure that all transactions have been treated in accordance with established accounting rules and procedures. If there were no such audits, accounting statements would be less reliable. Therefore, it's important that the internal auditor be objective and critical of any improprieties or deficiencies he or she might note in their evaluation. Regular internal audits offer the firm assistance in the important role of financial planning.

1. Answer the following questions.

1. What does financial control mean?

2. What can be done after establishing financial control?

3. What does financial control provide?

4. Why do taxes also fall under the scrutiny of finance?

5. What is tax management?

6. Why tax management is a financial concern to the firm?

7. Who performs the job of an internal auditor in the company?

8. What does the internal auditor do?

9. Why is it important that the function of internal auditing remains independent?

10. What do the regular internal audits offer the firm?