Unit 19

Phrase list

Listen to the tape and practise the pronunciation of the following words and word combinations, quote the sentences in which they are used in the unit. Consult a dictionary and translate them into Russian.

to approve the accounts

to ensure that somebody is reporting correctly to be in private practice

to be exempt from having to publish the accounts

Profit Statement (a Trading and Profit and Loss Account) Balance Sheet

Director’s Report

to deduct overhead charges depreciation on plant and buildings the capital employed

issued share capital retained earnings fixed assets

trade investments

compilation of net current assets less liabilities

The totals must agree. current liability

stock valuation to go into things

to be listed as goods paid for

to find no/the record of payment

to buy something on a sale or return basis to make out cheques to somebody

to total up the value of the cheques to pay in the staff member’s cheques

to draw out an equivalent sum of cash with the cheque a withdrawal on the bank statement

a paying-in voucher for the date to be a fiddle

to query the figure

to draw somebody’s pay in advance

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PRE-LISTENING

Task I

Consider the introduction to the unit. Answer the following questions and be ready to give a story line. Use the word combinations in brackets.

1. What is the main task of the auditors?

(to approve the accounts of a limited company; to act on behalf of the shareholders; to ensure that the directors are reporting correctly; the state of affairs of the company; to judge whether the directors are managing the company efficiently; to judge for themselves)

2. Why has H.G. changed the firm auditing the firm’s accounts?

(to audit the accounts of Harper & Grant; to be in private practice as an accountant; to be appointed; a privately owned limited company; to be exempt from something; to publish accounts; to have the accounts audited by independent auditors; to be connected with the company)

3. What is W. Buckhurst responsible for?

(to be Company Secretary; to be responsible for something; the period in question; to be ready for checking; to make a bad impression; the accounts department; to supply immediately any information wanted by the auditors)

4. Which three documents are in the focus of the auditors’ attention?

(to be satisfied; the Profit Statement; the Balance Sheet; the Directors' Report; a Trading and Profit and Loss Account; to arrive at the profit for the year; to start with net sales or income; to deduct the cost of materials, work and overhead charges; to leave a trading surplus; depreciation on plant and buildings; auditors' fees; administration and selling costs; to produce the net profit or loss; a summarised statement; the amount of funds employed in the business; to derive the funds from some sources)

5. What does the Balance Sheet show?

(to list the capital employed; the issued share capital plus reserves and retained earnings; the total cost of fixed assets; trade investments; a breakdown of net current assets; cash and stocks, plus what the firm is owed by its customers, less its liabilities; to be shown as a trade investment; a current liability; an item in the compilation of net current assets)

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6. Why is stock valuation a mixed blessing?

(to prepare accounts; to put a value on all goods in the hands of the company; to check against the suppliers' invoices; the value of commodities; to fluctuate; a company's stock; work in progress; finished stock; the volume of all stock is changing daily, if not hourly; to be taken at cost price or market price, whichever is the lower)

Task 2

Give the English equivalents for the following word combinations:

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LISTENING

Exercise 1

You are going to hear a talk between William Buckhurst and Mr. Brent. Before you listen to the conversation look at these statements, which you will mark T (True) or F (False) after you have listened to the tape.

1.Having spent three hours at the books in Harper & Grant Ltd., the chief auditor asked the chief accountant to go into two small things so that Hector Grant could try and get the information straight away.

2.The chief auditor started with the stock valuation and was puzzled by the figure for paint: it was listed as goods paid for, but he could find no record of payment.

3.Harper & Grant always buy paint on a sale or return basis and pay for it each quarter as we use it so Mr. Buckhurst presented a cheque for the total amount.

4.The chief accountant admitted his fault for the anomaly in stock valuation because it was him who accepted the figure in the Stock Department and they had forgotten the sale or return arrangement and put the paint in the wrong column.

5.Another anomaly was the cheques made out to members of the staff.

6.Clerks in the accounts department often cash cheques for staff as a service, the cheques are made out to the company by the individuals.

7.The chief accountant totals up the value of the cheques, comes to the cashier for a company cheque for the same sum, and then goes to the bank.

8.The staff members' cheques are paid in and an equivalent sum of cash is drawn out with the company cheque when the representative of the company goes to the bank.

9.According to the paying-in vouchers the amount paid in is less than the amount drawn out but the bank statement didn’t reflect it, which surprised Mr. Brent.

10.There was the difference of fifteen pounds between the amount paid-in and drawn out of the company.

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