Английский язык для бухгалтерского дела. English for Accounting. Учебное пособие

2.How long have you been studying English?

3.When do you eat your supper?

4.What is the work week in your country?

5.What year did you enter the institute?

6.How long does your English class last?

7.When do you usually go to sleep?

4. Prepositions of Cause and Purpose.

Ex. 3. Read the sentences and fill in the blanks with one of the above prepositions.

1.The man died __ a heart attack.

2.This pan is __ cooking omeletts.

3.He helped us out __ concern for our welfare.

4.The soldier died __ battle

5.Due __ poor attendance, the course has been cancelled.

5.Preposition plus Noun Clause.

Ex. 4. Read and translate the following sentences:

1.When you leave home, you have to live on whatever you earn.

2.The girl objected to what her brother did.

3.Make a note about what you might forget.

4.That man is responsible for what his dog did.

5.The two drivers couldn’t agree on what happened in the accident.

Ex. 5. Fill in the blanks with an appropriate preposition. Translate the sentences into Russian.

1.My father isn’t very good __ cooking.

2.We are interested __ learning more about the customs of other countries.

3.They didn’t have enough money, so __ going to fancy dinner, they went skating in the park.

4.As citizens we should be concerned __ maintaining peace.

5.The dieter lost weight __ not eating between meals.

6.I feel nervous __ living away from home.

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7.You are capable __ doing your homework yourself.

8.The police arrested someone __ breaking into the house.

9.They went to the movies __ getting our permission.

10.The student became proficient in English __ speaking every day.

Ex. 6. Fill in the blanks with an appropriate preposition. Translate the sentences into Russian.

1.Accounting is important … business … two reasons.

2.Management accounting is concerned … preparing information

…internal use.

3.Government agencies are mainly interested … regulating the business and collecting taxes.

4.It is important to determine how much money will be coming … and how much will be going … .

5.GAAP have been established and agreed … … the accounting profession … many years.

6.Most countries have a central bank, which is responsible … the operation … the banking system.

7.Public accountant are independent … the businesses, organizations, and individuals they serve.

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Read text B and do the task given after it. Ask questions on

Text B for your partners to answer. Use these answers for making up a summary of the text.

Text B

TYPES OF ACCOUNTANTS

The distinction between financial accounting and management accounting is reflected in the professional orientation of accountants themselves. They may be divided into two groups: public accountants and private, or corporate, accountants.

Public accountants

Public accountants are independent of the businesses, organizations, and individuals they serve. They are retained to prepare financial

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statements for individuals and some small organizations. For larger companies they are retained to prepare reports on the fairness of those statements. Sometimes such a report is based on an audit, a formal evaluation of the fairness and reliability of financial statements. The report accompanies the client’s published financial statements and indicates whether the statements have been prepared in accordance with GAAP as well as whether any disclosures about uncertainties that would materially affect the client’s financial position are necessary.

Public accountants’ detached position obligates them to be objective and, when necessary, critical. Thus, they are of value to anyone who must have an unbiased picture of the financial standing of a particular business, such as creditors, shareholders, investors, and even government agencies.

Private accountants

Private accountants, sometimes called corporate accountants, are those employed by a business, government agency, or nonprofit corporation to supervise the accounting system and the bookkeeping staff. They are also responsible for generating and interpreting financial reports. Many private accountants are CPAs1; however, a growing number are certified management accountants (CMAs2), a relatively new designation that indicates they have passed a test comparable in difficulty to the CPA exam.

The work of an in-house accounting staff is varied, ranging from routine bookkeeping, the clerical function of recording transactions, to high-level decision making. The highest-ranking private accountants typically have the title of controller or financial vice president. They hold the reins on virtually every aspect of a company’s financial operations and usually report directly to the president. The controller of a medium or large corporation monitors and cross-checks all financial data, usually with the help of a computer, in order to evaluate the company’s financial health at any given point. The controller also supervises the preparation of financial analysis, budgets, forecasts, internal audits, and tax returns.

I.Match the terms (1-7) with the explanations (a-g).

1.auditing

2.management consulting

3.tax accounting

1CPAs - Certified Private Accountants

2CMAs - Certified Management Accountants

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4.general accounting

5.management accounting

6.internal audit

7.cost accounting

a.to control the cost of manufactured products and their distribution; to help management estimate future costs;

b.to check the accuracy of company records and accounting methods;

c.to use reported data to help managers plan operations, price new products and make other decisions;

d.to record all business transactions and prepare reports and financial statements;

e.to provide tax planning, tax preparation and representation in case of tax audit;

f.to provide objective evaluation of decisions in such areas as marketing and manufacturing on accounting, taxes and reporting in other countries;

g.to provide independent analysis of financial statements which is used in reports to shareholders, investors and purchasers of businesses.

II.Make up a plan of Text B.

III.Express the main idea of Text B.

** *

Translate Text C into Russian in writing in 45 minutes, use a

dictionary . Answer the question: What did the financial statements of some bankrupt firms indicate?

Text C

PUBLIC ACCOUNTANTS

Some public accounting firms have been in the news in the past few years in connection with an increasing number of business failures. The financial statements of several bankrupt firms all indicated profitable operations and reasonably sound financial positions just before they

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collapsed. These companies’ independent auditing firms had given their financial statements with an unqualified opinion - in effect, a clean bill of health. Arthur Young & Co., the auditor for Osborne Computers, was sued for $ 4.3 million for damages by a group of investors after the computer company collapsed. The jury found Osborne and Arthur Young innocent of fraud in the case but nevertheless awarded damages to the investors, saying that the auditors were negligent in failing to warn the computer company of deficiencies in its financial controls.

As consultants, accountants are devising computer systems for businesses, giving financial advice, and setting up personnel plans. These activities are often referred to as management advisory services (MAS), which have been especially valuable for small and mid-size businesses. For example, the accounting firm of Friedman & Fuller in Rockville, Maryland, offers its clients services in their subsidiary areas: improvement, risk management, and systems training. These nontraditional services currently account for a quarter of the company’s revenues and are expected to make up half of the firm’s gross income within the next few years. One concern is that as accountants become more involved in their clients’ businesses, they may lose some of the objectivity they need as independent auditors.

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UNIT II

Text for Study: Auditing (Text A) Grammar Guide: Active and Passive Voice

Supplementary Reading: Reasons for studying International accounting (Text B);

The Government and Credit (Text C).

PRE-TEXT TASKS

I. Practise the pronunciation of the following words from text A and try to memorise them.

1.ascertain ["xsq:'teIn] - установить, удостовериться.

2.multinational ["mAltI'nxS(q)nql] - зд. международный

3.safeguard ['seIfgQ:d] - охранять

4.employee ["emplOI'i:] - служащий

5.personnel ["pE:sq'nel] - персонал, кадры

6.compliance [kqm'plaIqns] - согласие

7.adequate ['xdIkwIt] - отвечающий требованиям, достаточный

8.evidence ['evId(q)ns] - доказательство, основание

9.objective [qb'GektIv] - цель, задача

10.statutory ['stxtjVt(q)rI] - установленный законом

11.approach [q'prqVC] - подход

12.establish [I'stxblIS] - учреждaть, устанавливать

13.statute ['stxtju:t] - cтатус, закон

II. Study the meanings of the following word combinations and phrases from text A.

1.whether management’s operating and financial controls are being followed - проводятся ли управлением текущие и финансовые проверки

2.to ascertain the reliability of the financial statement - установить достоверность отчетов о финансовом положении

3.corporate policy - общая линия поведения

4.to lend credibility - обеспечить кредит доверия

5.asset security - cохранность капитала

6.by statute - по закону

III. Define the meaning of thе prefixes in the following words and translate them:

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unacceptable, international, multinational, misuse, underlying, misleading.

IV. Change the verbs in the following sentences into Past Simple and Future Simple.

1.It is important to determine how much money goes out and how much money comes in.

2.The master budget is based on several component budgets.

3.The employees of an accounting department perform many functions.

4.The outsiders have a variety of interests.

5.These differences pose problems for international investors and credits.

6.The auditor examines the financial statement of the firm.

** *

In a general sense, auditing is done for the same purposes in all countries. Internal audits are done to see whether management’s operating and financial controls are being followed, and whether or not they are effective. External audits are done to ascertain the validity and reliability of the financial statements prepared by companies, based on specific auditing standards.

Yet despite these general similarities, actual auditing practices vary considerably from country to country. In some countries an audit is seldom performed, or it is performed in a manner that is unacceptable to the auditors of other countries. Such differences in auditing practices pose problems for international investors and creditors and, of course, for multinational firms.

Here we will examine some of the major differences in auditing throughout the world and the problems these differences pose.

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The first part is concerned with internal auditing and the second part with external auditing.

Internal auditing

A good manager wants to be sure that the company’s assets are used properly and safeguarded at all levels. Management also wants to be sure that employees behave in a manner consistent with corporate policy, and that they follow corporate procedures correctly. These two areas - asset security and personnel compliance - are the two key concerns of internal auditing. Without adequate internal controls, firms can suffer losses due to the theft or the misuse of funds, products or equipment. The firm can also face litigation if its personnel fail to follow company policy. Thus, internal auditing is an important function of management. Depending on the cultural and business practices of a country, internal auditing may even be one of the most important internal functions of a business.

External auditing

One of the major activities of a public accountant (as opposed to a private accountant) is to conduct “external” audits, an activity often referred to as the “attest” function. The auditor examines both the financial statements of a firm and the supporting evidence prepared by the management’s internal accounting staff. The external auditor tests and checks the accounting system underlying the financial statements, using as a basis the accepted auditing standards of the country - established by either the accounting profession or the government (or both). The audit and the related auditor’s “opinion” are important because they lend credibility to the firm’s financial statements.

While the external audit’s general objectives are fairly similar in all countries - to determine that financial statements have been properly prepared and are not misleadingthe exact meaning of “properly prepared” is generally not the same from one country to the next.

In most countries where external audits are required, the external audits is a “statutory” audit. The purpose of the statutory audit is generally to verify that the accounting records and financial statements have been kept and prepared in accordance with the country’s related accounting laws. This legal approach to auditing is consistent with the legal approach to accounting in countries where accounting rules are established by statute.

COMPREHENSION СHECK

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I. Find synonyms among the following words and word combinations: ascertain, personnel, adequate, objective, make sure, certify, staff,

proper, target, by statute, establish, safeguard, examine, by law, found, set up, protect, test.

II. Match the beginnings with the appropriate endings of the sentences.

III.Say if something is wrong in the following statements.

1.In some countries an audit is performed in a manner that is acceptable to the auditors of other countries.

2.If the personnel of the firm fail to follow company policy the firm can face litigation.

3.There is no need for a good manager to know that his company’s assets are safeguarded and used properly.

4.Asset security and personnel compliance are the two concerns of internal auditing.

5.Whether internal auditing is important or not depends on cultural and business practices of a country.

6.External auditors examine only the evidence prepared by the management’s internal accounting staff.

7.The audit and the related auditor′s “opinion” lend credibility to the financial statements of the firm.

8.The exact meaning of “properly prepared” is generally similar from one country to the next.

IV. Answer the questions on the text.

1. What differences in auditing practices pose problems for

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international investors and creditors?

2.What is internal auditing done for?

3.What are the functions of external auditors?

4.Why are the audit and the auditor’s opinion important?

5.What is the purpose of the statutory audit?

V. Select sentences with the Infinitives and state their functions.

VI. Copy out the words used as attributes. Define what parts of speech they belong to.

GRAMMAR GUIDE

The Verb, Active and Passive Voice

Study the following grammar Tables.

Table 1. Tenses in the Active Voice

Сигналы глагола-сказуемого:

1)V+ ed; V + s;

2)8 форм глагола to be - be, been, being, am, is, are, was, were;

3)3 формы глагола to have - have, has, had;

4)вспомогательные глаголы - shall, will, do, does, did;

5)модальные глаголы - must, may, might, can, could, need, ought, should.

Table 2. Tenses in the Passive Voice

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