2.Answer the questions:

1. What are the auditing standards?

2. Why is it essential to have generally accepted auditing standards?

3. Are there any distinctions between auditing standards and procedures?

4. What does the term ‘procedures’ refer to?

5. How are auditing standards issued?

3.Complete the following statements:

1. _____ the quality of audit examinations often varied widely.

2. It is essential that every auditor has a ______ .

3. The lack of compliance with generally accepted auditing standards _____.

4. The audit procedures _____ .

5. Auditing standards deal with _____.

6. Auditing standards _____ .

7. Generally accepted auditing standards are_____.

4.Fill in the missing prepositions: of (5), by, from, out

An auditor is an accountant, independent _____ accompany, who is appointed_____ the shareholders to ensure that the annual accounts give a true and fair view _____ the state _____the company. The accounts should be prepared using the accepted methods _____ accountancy. Auditors will also try to ensure that the organization’s accounting systems do not allow any fraud or stealing to occur_____ the company’s funds. Large organizations might carry _____ an internal audit themselves to ensure that their accounting practices and procedures are accurate and efficient.

Unit 13

1. Memorize the following words and word-combinations:

operational audit - операционный аудит, операційний аудит

compliance audit - аудит согласования, аудит погодження

prescribed - предписанный, припис

compliance with - в соответствии с, у відповідності до

contractual agreement- контракт, контракт

assumption - предположение, припущення

2.Read and translate the text: types of audit

Three types of audit are the main ones: operational audits, com­pliance audits, and audits of financial statements.

Operational audits is a review of any part of an organization's operating procedure and methods for the purpose of evaluating efficiency and effectiveness. At the completion of an operational audit, recommen­dations to management for improving operations are normally expected. In operational auditing, the reviews are not limited to accounting. They can include the evaluation of organization structure, computer opera­tion, production methods, marketing, and any other area in which the auditor is qualified. In this sense, operational auditing is more similar to management consulting than to what is generally required as auditing.

Compliance audits. The purpose of the compliance audits is to determine whether the auditee is following specific procedures or rules set down by some higher authority. A compliance auditing could include determining whether accounting personnel are following prescribed pro­cedures, reviewing wage rates for compliance with minimum laws, or ex­amining contractual agreements with bankers and other lenders, etc.

Audits of financial statements. This type of auditing is conducted to determine whether the overall financial statements are stated in

ac­cordance with specific criteria. The assumption underlying an audit of financial statements is that they will be used by different groups for

dif­ferent purposes. Normally, the criteria are generally accepted accounting principles.