3. Translate into Ukrainian:

a financial position	assets
an account	fixed assets
a tax	a stockholder
a financial statement	a financial position
tax bodies	an accountant
overheads	a bookkeeper
balance sheet	receipts
a profit and loss account	a trial
appropriation

4. Find the English equivalents:

рахівник	дохід
вартість	акціонер
перевірка	рахунок доходів та витрат
обіговий капітал	рахунок
зобов’язання	накладні витрати
поточні зобов’язання акція	відповідна фінансова ін­формація
система подвійного запису збут, продаж	податкові органи готівка

5. Answer the following questions:

1. What is accounting?

2. What is transaction?

3. What is the aim of accounting?

4. What two types of records do you know?

5. What users of financial statement can you name?

6. What do financial statements show?

7. What are the three most important financial documents?

8. Do profit and loss accounts give a “history” of a company’s finances?

9. How many sections are there in balance sheets?

1. What is the essence of the double-entry system?

2. What is the difference between bookkeepers and accountants?

Unit 7. Auditing

1. Read and memorize the following words and word combinations:

• financial records (to review, to evaluate, to examine, to check up) –фінансові записи (операціі) (переглядати, оцінювати, оглядати, перевіряти)

• financial position (state, situation, health) – фінансове становище (ситуація, здоров'я)

• audit – аудит, перевірка, ревізія

• to audit – проводити аудит, перевірку

• auditing – аудит (процес)

• auditor – аудитор, ревізор, (фінансовий) контролер

• internal audit – внутрішній аудит

• independent (external) audit – незалежний аудит

• to maintain (to make, to do, to provide) an audit – проводити аудит

• misappropriations – незаконне присвоения, розтрата

• in regard to – відносно, щодо

• completeness accuracy –повнота (запису) точність

• all irregularities are corrected – всі помилки виправлені

• fairness an auditor's opinion on the fairness – відповідність (правилам обліку)

• a scope paragraph; an opinion paragraph –констатуючий параграф, висновки

• nonexistent transactions – неіснуючі операції

2. Read, translate and retell the text.

Auditing is an accounting function that involves the review and evaluation of financial records and financial position of a company. Audits areperformed by highly qualified accountants (auditors) ordered by the management of the company or by some state authorities (audit and control). Not so many years ago audit suggested that a company had financial difficulties or some irregularities in the records. At present, audits are a normal and regular part of business practice.

There are two types of auditing: internal andindependent.

Internal audit is a system of internal control which provides accounting controls against errors and misappropriations. Many companies employ theirown accountants to maintain an internal audit. They continuously review operating procedures and financial records and report to management on the current state of the company's fiscal affairs. They check the accounting records in regard to completeness and accuracy, making sure that all irregularities are corrected.

Independent auditing is done by certified accountants (CPA - certifiedpublic accountant - in the USA) who are not employees of the organization whose books they examine. Independent auditors review the business's operating activities; they examine financial statements, the accounting records and other business papers to determine the accuracy and completeness of therecords. It is called fairness in accounting terminology, that is, if the accounting process has been done according to accounting principles, procedures and rulesat that organization.

The accountant's judgment or opinion on the fairness of the records is written in a document sent to the client upon completion of the audit. It consistsof a letter addressed to the client that involves a scope paragraph (list of documents that he has examined, and the standards that have been used for the audit), and an opinion paragraph (the auditor's conclusions).

Auditors can help the business set up a reliable accounting system; they can also discover whether nonexistent transactions have been entered on the books. Even in a small business mistakes in the books of accounts can lead to abusiness failure.

Essential Vocabulary Words and Word Combinations

audit, auditor, auditing	completeness	fraud	certified accountant CPA
accuracy	credibility	irregularity	in conformity with
authenticity	deviation	judgment	to the extent of
carelessness	evaluation	misunderstanding	to set up procedures
competence	fairness	payroll	internal control system