- •Contents
- •Передмова
- •Financial system
- •Finance and financial system
- •II. Vocabulary exercises
- •Revenue sources and revenue-sharing arrangements in Ukraine:
- •A. Dialogue
- •1. Read and translate the dialogue in pairs:
- •Vocabulary list:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •Communicative situations
- •A) Supply the prepositions where necessary.
- •Budgetary policy
- •2. Read the text and name the facts from the text which are new to you: Treasury
- •3.Read the text and say what you know about the budget process in Ukraine:
- •III. Match what statements are true and what are false. Results write to the table:
- •Fiscal management
- •Financial policy. Fiscal sphere
- •A. Dialogue
- •Vocabulary list:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •Communicative situations
- •2.Express your attitude to the following:
- •3.Prepare a short talk on the following:
- •A) Supply the articles where necessary.
- •Financial Policy
- •A) Supply the articles where necessary.
- •Fiscal Policy in the uk
- •A) Fill each gap with a suitable word from the box.
- •A) Read and discuss the texts.
- •Write down five questions about each text.
- •A) Read and discuss the texts.
- •Say what you know about the use of multiyear budgeting and budget classification in Ukraine. Types of Budget Classification
- •A) Read the article quickly and underline the parts about the challenge the transition economies face and the constraints affecting the ability of the governments to meet the challenge.
- •I. Fill in each space with the appropriate words from a, b or c:
- •Taxation
- •What are taxes?
- •Column a
- •Tax system in Ukraine
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: Taxation in Ukraine
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •B. Communicative situations
- •4. Make a short essay on the following:
- •A) Supply the articles where necessary.
- •A) Supply prepositions where necessary.
- •What Is an Excise Duty?
- •Open the brackets putting the verbs in the correct form: Tax Reform in Developing Countries
- •Read the text below carefully and underline the parts of it giving basic ideas about the desired features of a tax system. Tax System Design
- •I. Mark the correct answers on the following questions:
- •II.Fill the tables:
- •III. Match what statements are true and what are false. Results write to the table:
- •Central banking system
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: Banking system in Ukraine
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •1. A) Supply the articles where necessary.
- •Credit Policy
- •A) Supply the prepositions where necessary.
- •3.A) Open the brackets, putting the verbs in the correct form.
- •The Bank of England
- •Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences. Present your summary in class.
- •Us Activities of Foreign Banking Organizations
- •A) Read and discuss the text.
- •Is Monetary Policy Needed?
- •A) Read and discuss the text.
- •Payment Systems
- •I. For each word or sentence choose the correct definition:
- •II.Match what statements are true and what are false. Results write to the table:
- •Banking system
- •Commercial banks
- •6To transact stock and share business – укладати угоди із цінними паперами
- •Column b
- •A. Dialogue
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3.Make up a dialogue on the following:
- •B. Communicative situations
- •Make a short essay on the following:
- •1. A) Supply the articles where necessary.
- •2. A) Supply the articles where necessary.
- •Bank Accounts
- •3.A) Supply the prepositions where necessary.
- •The Nature of Banking
- •4. A) Open the brackets putting the verbs in the correct form.
- •5.Look through the text and name the facts which are new to you.
- •Choose the word which best completes each sentence:
- •II.Match what statements are true and what are false. Results write to the table:
- •International monetary system
- •International monetary institutions
- •A. Dialogue
- •Imf’s support for ukrainian reforms
- •1. Read and translate the dialogue in pairs:
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3. Make up a dialogue on the following:
- •B. Communicative situations
- •A) Supply the articles where necessary.
- •International Monetary Fund
- •2.A) Supply the prepositions where necessary.
- •Your Partner ebrd
- •3. A) Fill each gap with a suitable word from the box.
- •Imbalances pur World Bank – International Bank for Reconstruction and Development (ibrd)
- •Match what statements are true and what are false. Results write to the table:
- •II. Fill the tables:
- •Foreign exchange market. Global financial markets
- •Trading in the foreign exchange market
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: cornerstone of the global financial market
- •Vocabulary
- •2.Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •Communicative situations
- •Global Financial Markets
- •2. A) Fill each gap with a suitable word from the box.
- •The Eurocurrency Market
- •3.Read the text quickly to find the types of most widely used swaps: Foreign Exchange Swaps
- •4. Read the text quickly to find answers to the following questions:
- •Foreign Exchange Options
- •Choose the correct answer:
- •Match what statements are true and what are false. Results write to the table:
- •Financial markets. The stock market
- •Stock markets
- •A. Dialogue
- •The corporate securities market in ukraine
- •Vocabulary
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out.
- •B. Communicative situations
- •2.A) Supply the prepositions where necessary.
- •Equity Market
- •3.A) Open the brackets putting the verbs in the correct form.
- •4. A) Fill each gap with a suitable word from the box below.
- •The New York Stock Exchange
- •5. A) Read the text below quickly and name organizations involved in the issues.
- •The New Issue Market
- •I. Choose the correct answer:
- •II.Match what statements are true and what are false. Results write to the table:
- •III.Fill the tables:
- •Financial markets. The bond market
- •Trading in the bond market
- •A. Dialogue
- •Vocabulary
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3.Make up a dialogue on the following:
- •B. Communicative situations
- •You have an exam. The question is: “What is the difference between debt and equity market?”
- •Prepare a short talk on the following:
- •1. A) Supply the articles where necessary.
- •The Eurobond Market
- •2. A) Supply the prepositions where necessary.
- •3. A) Read the text.
- •4. A) Look through the text below to say what types of securities are described in it.
- •Us Government Securities
- •I.Choose the correct answer:
- •II. Match what statements are true and what are false. Results write to the table:
- •III. Fill the tables:
- •Financial management
- •Financial function
- •Financial ratios
- •A. Dialogue
- •Ratio analysis
- •Vocabulary list:
- •Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •1. A) Supply the articles where necessary.
- •A) Read the text.
- •Corporate Governance
- •3. Read the text and say how investment risks can be reduced:
- •Investment Management
- •4. A) Supply the prepositions where necessary.
- •Financial Capital
- •5. A) Fill each gap with a suitable word from the box.
- •I. For each word or sentence choose the correct definition:
- •II. Match what statements are true and what are false. Results write to the table:
- •Accounting
- •Accounting principles and concepts
- •Book-keeping:
- •The double-entry bookkeeping:
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: accountancy in a free-market economy
- •Vocabulary list:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3. Speak about the work of public accountants, private accountants, and accountants who work for units of the government and non-for-profit firms. B. Communicative situations
- •1. A) Supply the prepositions where necessary.
- •2. A) Read the text and single out the main facts and present them in a short review.
- •Read the text that follows to find the answers to the following questions:
- •Financial Statements And Their Elements
- •Balance sheet
- •Liabilities
- •Revenues
- •Expenses
- •Gains and losses
- •Choose the correct answer:
- •II. Match what statements are true and what are false. Results write to the table:
- •Auditing
- •Performing an audit
- •Audit strategy:
- •Audit risk:
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: auditing in ukraine
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3.Make up dialogues on the following:
- •B. Communicative situations
- •Discuss with your friends:
- •1. A) Read the texts and do the tasks that follow.
- •2.A) Supply the prepositions where necessary.
- •Auditors’ Report
- •3.A) Open the brackets putting the verbs in the correct form.
- •Misuse of Public Funds
- •4.A) Supply the articles where necessary.
- •Fill in each space with the appropriate words from a, b or c:
- •II. Which is correct:
- •III. Match what statements are true and what are false. Results write to the table:
- •IV. Fill the tables:
- •Glossary
- •Phraseology of reports and speeches coherent and generalization phrases
- •Phrases that are used in admission expressions
- •Nouns: common and possessive case
- •Count and noncount nouns
- •Some common noncount nouns
- •Using nouns as modifiers
- •The indefenite aricle
- •The definite article
- •No article
- •Personal pronouns
- •Possessive pronouns
- •Reflexive pronouns
- •Indefinite pronouns
- •Quantitive pronouns
- •Demonstrative pronouns
- •Degrees of comparison of adectives and adverbs
- •Numerals
- •The functions of the verb «to be»
- •The functions of the verb «to have»
- •The functions of the verb «to do»
- •General questions
- •Tag questions
- •Question words when
- •More questions with how
- •Modal verbs can; could to be able to
- •May; might
- •Must; be to; have to; have got to
- •Should; ought to
- •Will; would
- •Indefinite pronoun «one»
- •The pronouns «both, either and neither»
- •Senquence of tenses
- •The infinitive
- •The prepositional infinitive complex
- •The objective infinitivecomplex
- •The subjective infinitive complex
- •The participle
- •Complexes with the participle the objective participle complex
- •The subjective participle complex
- •The gerund. Forms and functions
- •The gerundal complex
- •Conditional sentenses
- •Irregular verbs
- •Reference list
Auditing
І. READING
Stress the first syllable:
auditing, auditor, records, accuracy, supervisory, agency, indepth, manifold, judgement, accurate, proper, legal, evidence, ultimate, totals, magnitude, qualify, certify, circumstances, relevant.
Stress the second syllable:
examine, opinion, preliminary, review, assumption, complete, record, omission, inherent, approval, integrity, accompanying, conduct, compliance.
Stress the third syllable:
credibility, deviation, reliability
4. Read the text:
Performing an audit
Auditing is a process in which an independent accountant-auditor examines a firm’s accounting records and financial statements and offers an opinion on their accuracy and reliability.
There are different types of audits, for example, financial statements audits, income tax audits, “value for money: audits, environmental audits, administrative audits, financial management audits, etc.
The accountancy profession has built up a significant amount of expertise in performing financial statement audits.
Accounts audits were established as an instrument to protect third parties, the users of accounts, since the auditor’s opinion helps establish credibility of financial statements.
Special bodies of users, such as supervisory boards, employee representatives, government agencies may sometimes need an indepth audit report, which is usually confidential.
It should be stressed that auditors do not monitor, they offer an opinion, and the audit process and audit procedures are complicated and manifold. The auditor’s opinion is gradually being built up from a mass of detailed work to the final judgement through the planning and testing stages. The auditor normally starts with a study of the business environment the audited company is working in and performs a preliminary analytical review.
Then he should direct his attention to the financial statements. Interestingly enough, however, the auditor’s attention is not directed towards the financial statements’ elements as such, but towards the correctness of various assumptions made by the management for their preparation. For instance, the auditor needs to know if figures are complete and accurate and reflect what they should reflect, if income and expenses and recorded in the proper periods and if the legal position is reflected adequately.
The auditor should focus on any misstatement whether it is intentional or unintentional1. The management is responsible for the reliability of financial information. If the management is not prepared to take the responsibility it may be hard to complete the audit. In such situations the auditor should seek his own evidence by means of independent audit procedures.
Although the financial statements are the ultimate objectives of an audit, normally such audits cannot be completed without a proper study and evaluation of the accounting system and assessment of the internal accounting controls.
Defining the audit strategy the auditor has to decide whether to rely on internal controls or to resort to substantive testing applying analytical review procedures, such as tests in totals, comparison with budgets or even statistical analysis of figures.
In the planning stage as well as during the performance of audit procedures and, finally, in forming conclusions, “materiality: and “audit risk” are critical elements in the auditor’s judgement. “Materiality” refers to the magnitude or nature of a misstatement (including an omission) of financial information.
“Audit risk” (including three different components – inherent risk, control risk, detection risk) is the risk that an auditor may give an inappropriate opinion on financial information that is materially misstated.
The natural finalization of the audit process is the auditor’s report, reflecting the auditor’s opinion on the financial statements. Unfortunately, audits do not always end up in an approval of the financial statements. Any deviation from the unqualified opinion should be explained in the auditor’s report, including the uncertainly or the disagreement that caused the auditor to qualify his opinion2.
In order to protect the public interests and the profession’s integrity an individual must be sufficiently educated and adequately trained before being certified to act as an auditor.
Below you will find a sample of an auditor’s opinion:
To the Shareholders of … Ltd.:
We have audited the accompanying balance sheet of … Ltd. as of 31 December … and the related statement of income for the year then ended.
Our audit was conducted in accordance with generally accepted auditing standards and, accordingly, included such test of the accounting records and such other auditing procedures as we considered necessary in the circumstances to establish whether the balance sheet and related statement complied with Ukrainian regulations and were in agreement with the underluing accounting records.
In our opinion, the balance sheet and related statement of income of … Ltd. referred to above have been prepared in compliance with the relevant Ukrainian regulations and are in agreement with the underlying accounting records.
Kyiv,
24 March …
NOTES:
should focus on any misstatement whether it is intentional or unintentional – слід звертати увагу на будь-яке подання невірних даних незалежно від того, чи є воно навмисним чи ненавмисним
2 …that caused the auditor to qualify his opinion – ті, що змусили аудитора внести доповнення у свій висновок (виразити особливу думку)
Vocabulary list:
auditing – аудит
auditor – аудитор
examine – перевіряти, проводити ревізію
accounting records – документи обліку
financial statements – фінансова звітність
to offer an opinion – робити висновок (за результатами аудиторської перевірки)
accuracy – точність
reliability – достовірність, надійність
audit – аудит, аудиторська перевірка
build up – нарощувати, накопичувати
account(s) audit – аудит рахунків
auditor’s opinion – висновок аудитора
credibility – вірогідність
supervisory board – наглядова рада
government agency – відомство, урядова організація
indepth audit report – детальний аудиторський звіт
audit process – процес проведення аудиторської перевірки
audit procedures – методика проведення ревізії
manifold – різноманітний, багатосторонній
judgement – судження, оцінка
planning stage – стадія планування
audited company – компанія, що перевіряється
preliminary analytical review – попередній аналіз фінансово-господарської діяльності
assumption – припущення, передумова
complete figures – повні дані
accurate figures – точні дані
record – реєструвати, записувати, відображати
proper period – належний період
legal position – юридичне положення, юридичний статус
misstatement – повідомлення неправильних даних
(un)intentional – (не)навмисний
to take the responsibility – брати (на себе) відповідність
to complete the audit – завершити аудиторську перевірку
to seek evidence – шукати докази
ultimate objective – кінцева мета
evaluation – оцінка
substantive test(ing)– незалежна перевірка
tests in totals – перевірка підсумкових чисел
to form a conclusion – зробити висновок
materiality – „істотність”
audit risk – ризик неякісного контролю
critical – вирішальний
magnitude – величина, розмір
omission – пропуск
inherent risk – притаманний (виду діяльності) ризик
control risk – ризик контролю
detection risk – ризик (не)виявлення
approval of the financial statements – підтвердження фінансової звітності
deviation – відхилення
unqualified opinion – безумовна думка (оцінка, висновок)
to qualify the opinion – дати аудиторський висновок з застереженнями
integrity – професійна чесність
certify – видавати свідоцтво
audit – проводити аудиторську перевірку
accompanying – прикладений
balance sheet – балансовий звіт
the related statement of income – відповідний звіт про прибутки та витрати
to conduct an audit – проводити аудиторську перевірку
generally accepted auditing standards – загальноприйняті стандарти аудиту
accordingly – відповідно
in the circumstances – у даних обставинах
to comply with regulations – відповідати вимогам
in agreement with – у відповідності з
underlying – що лежить в основі
in compliance with – у відповідності з
relevant – слушний, що відноситься до справи
ІІ. VOCABULARY EXERCISES:
Ex.1. Find equivalents:
to build up;
audit procedures;
auditor’s opinion;
account(s) audit;
complete figures;
accurate figures;
control risk;
detection risk;
tests in
totals;
to conduct an audit;
to offer
an opinion;
unqualified opinion;
in agreement with
аудит рахунків;
повні дані;
ризик контролю;
у відповідності з;
ризик (не)виявлення;
висновок аудитора;
точні дані;
нарощувати, накопичувати;
методика проведення ревізії;
перевірка підсумкових чисел;
методика проведення ревізії;
проводити аудиторську
перевірку;
робити висновок (за результатами
аудиторської перевірки);
безумовна думка, оцінка
Ex.2. Enter correct correspondences in English or in Ukrainian:
ENGLISH |
UKRAINIAN |
|
аудитор |
examine |
|
accounting records |
|
|
фінансова звітність |
audit |
|
audit process |
|
|
стадія планування |
|
компанія, що перевіряється |
to complete the audit |
|
|
зробити висновок |
to qualify the opinion |
|
certify |
|
|
проводити аудиторську перевірку |
|
балансовий звіт |
Ex.3. Find English equivalents for the following Ukrainian phrases:
перевіряти звітну документацію; давати висновок щодо точності та достовірності фінансової звітності; аудит фінансової звітності; ревізія правильності нарахування прибуткового податку; аудит оптимального використання грошових засобів; аудит заходів щодо захисту навколишнього середовища; ревізія правильності дій керівництва; фахівці накопичили значний досвід в ...; висновок аудитора робить фінансову звітність надійною; аудитори не контролюють, вони дають висновок у відношенні точності та достовірності фінансової звітності; ділове середовище, в якій працює компанія, що перевіряється; аудитори звертають увагу на точність попередніх розрахунків, зроблених керівництвом; навмисне чи ненавмисне подання невірних даних; брати на себе відповідальність за ...; процедура проведення аудиторської перевірки; оцінка системи внутрішнього контролю; удаватися до незалежних перевірок; аналіз фінансово-господарської діяльності; підтвердити фінансову звітність; безумовний висновок; аудиторська перевірка була проведена у відповідності із загальноприйнятими стандартами аудита; балансовий звіт відповідає українському законодавству.
Ex.4. Fill in the blanks with prepositions, pronouns or conjunctions if necessary:
Auditing is a process ... ... an independent accountant-auditor examines a firm’s accounting records ... financial statements.
Accounts audits were established ... an instrument ... protect third parties, the users ... accounts.
Special bodies ... users, ... ... supervisory boards, employee representatives, government agencies may sometimes need an indepth audit report, ... is usually confidential.
The auditor’s opinion is gradually being built up … a mass … detailed work … the final judgement … the planning and testing stages.
The auditor’s opinion is gradually being built up ... a mass of detailed work ... the final judgement ... the planning ... testing stages.
The auditor’s attention is directed towards the correctness … various assumptions made … the management … the financial statements preparation.
The auditor should focus ... any misstatement ... it is intentional ... unintentional.
Тhe auditor has to decide ... to rely ... internal controls ... to resort … substantive testing .
“Audit risk” is the risk … an auditor may give an inappropriate opinion … financial information … is materially misstated.
The natural finalization … the audit process is the auditor’s report, reflecting … the auditor’s opinion … the financial statements.
In order … protect the public interests … the profession’s integrity an individual must be sufficiently educated … adequately trained … being certified to act … an auditor.
Ex.5. Complete the following sentences:
Auditing is a process in which … .
The accountancy profession has built up … .
Accounts audits were established … .
Special bodies of users, such as … may sometimes need … .
Auditors do notmonitor, they offer … .
The auditor normally starts with … .
The auditor needs to know if …, if … and if … .
Financial statements are … .
The auditor has to decide … .
“Audit risk” is the … .
The natural finalization of the audit process is … .
An individual must be … to act as an auditor.
Ex.6. Answer the following questions:
What is auditing?
What audits are practiced nowadays?
What does the auditor’s opinion help establish?
How is an audit planned?
What do auditors normally start with?
What do auditors direct their attention to when they analyse financial statements?
What responsibilities do managers (directors) undertake with regard to the audit?
What are the responsibilities of auditors?
Do auditors study and evaluate the accounting system and the internal accounting control during the audit? Do they rely on internal controls?
What are the most critical elements in the auditor’s judgement?
Do all audits end up in the approval of the financial statements?
Who has the right to act as an auditor?
What were the auditors responsible for?
Ex.7. Translate into English:
Існують різні види аудиту, такі як, перевірка фінансової звітності, ревізія правильності нарахування прибуткового податку, аудит оптимального використання грошових засобів та інші.
Фахівці бухгалтерського обліку накопичили значний досвід у проведенні перевірок фінансової звітності.
Аудит рахунків є інструментом захисту інтересів користувачів фінансової звітності.
Наглядовим радам та відомствам іноді необхідні глибокі аудиторські звіти, які, як правило, є конфіденційними.
Аудиторський висновок забезпечує надійність фінансової звітності.
Процес проведення аудиторської перевірки та методика проведення ревізії – складні та різноманітні.
Увага аудитора спрямована на точність (правильність) попередніх розрахунків, зроблених керівництвом.
Аудитор повинен звертати увагу на будь-яке подання невірних даних незалежно від того, чи є воно навмисним чи ненавмисним.
Визначаючи стратегію перевірки, аудитор повинен вирішити, чи покладатися на внутрішню систему контролю чи застосовувати незалежну перевірку.
„Матеріальність” та „ризик неякісного контролю” є виключно суттєвими факторами при формуванні висновку аудитора.
Звичайним завершенням процесу аудиторської перевірки є аудиторський звіт, який відображає аудиторські висновки щодо фінансової звітності.
Ex.8. Match each term in Column A with its definition in Column B:
auditor;
supervisor;
certificate;
regulation;
licence
a rule or a restriction made by an authority;
a person with authority who matches others work to make sure a job
is done properly;
a written or printed paper issued by an authority as proof of
something;
a professionally trained person who examines the accounts of an
organization to check that they are true and correct;
an official document showing that official permission has been
given to own, do or use something;
Column A
Column B
Ex 9. Write several paragraphs on the following using given words and word combinations:
auditing process:
a process; accountant-auditor; to examine; accounting records; financial statements; to offer; an opinion; accuracy and reliability.
types of audits:
different types; financial statements; income tax; “value for money”, environmental, administrative; financial management.
auditor’s opinion:
to monitor; to offer an opinion; audit process; audit procedures; to complicated; to manifold; detailed work; final judgement; planning stage; testing stages. business environment preliminary; analytical review.