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Латыгина Базовый курс економики на англ.doc
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Auditing

Auditing is an accounting function that involves the review and evaluation of financial records of a company. It is done by auditors. These reviews are called audits.

Outside/external audits are a normal and regular part of business practice. In addition, many corporations maintain a continuous internal audit by their own accounting departments. They review operating procedures and financial records and report to management on the current state of the company’s fiscal affairs. The internal auditors make suggestions to management for improvements in the standard operating procedures and check the accounting records.

Independent auditing is done by accountants who are not employees of the organization whose books they examine. The independent accountant is almost always a CPA. Independent accountants review the business’s operating activities; they examine financial statements and the accounting records. An audit can take several days, even for a fairly small company.

Management must act upon the information in the financial records; the auditor ensures that this information is accurate, adequate, and accessible.

Exercises in Word Study

Ex.1. Form nouns from the following verbs:

evaluate, improve, examine, act, inform, organize, manage.

Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text.

review

a) noun

b) verb

record

a) noun

b) verb

audit

a) noun

b) verb

practice

a) noun

b) verb

report

a) noun

b) verb

check

a) noun

b) verb

book

a) noun

b) verb

state

a) noun

b) verb

Ex.3. Give the English for:

перевірка та аналіз фінансових документів, аудитор, зовнішній аудит, внутрішній аудит, бухгалтерія, фінансові справи компанії, перевіряти бухгалтерську документацію, перевіряти бухгалтерські книги, стандартні методи роботи, точна інформація.

Ex.4. Match words from list A with words from list B that have a similar meaning.

A

B

outside audit

review

evaluation

check

accurate

adequate

accessible

procedure

independent

uncontrolled

process

sufficient

achievable

examination

correct

examine

analysis

external audit

Ex.5. Find suitable opposites to the following words and phrases:

incorrect, insufficient, unachievable, dependent, external audit, abnormal, irregular.

Ex.6. Match the nouns in the left-hand column with the adjectives in the right-hand column. Translate the phrases into Ukrainian.

auditor

audit

evaluation

approximate

statistical

subjective

external

internal

travelling

annual

unscheduled

general

Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below.

  1. a detailed inspection of the accounts of an organization by a professionally trained person;

  2. an audit carried out by a person not employed by the company to check that the accounts are accurate and honest;

  3. a professionally trained person who examines the accounts of an organization to check that they are true and correct;

  4. a review and evaluation of a company’s financial records by employees of the same company;

  5. an organization’s established methods of carrying out its operating and recording functions;

  6. an analysis, study;

  7. the books, files or computer records where a company’s accounts are kept;

  8. a report showing profit and loss for a business or institution.