2.A) Supply the prepositions where necessary.

b)Say what the auditors checked during the audit in accordance with the instructions given to them.

Auditors’ Report

We have examined the books, accounts and vouchers relating … the six months ended 30^th September … (year) which presented … us. We have made extensive enquiries … the system of internal check … force and are satisfied that it is working efficiently. Particular attention was paid to the methods in force for the authorization of accounts for payment and the handling … cash. The cash balances … the 30^th September … (year) were counted and found to be in accordance … the cashier’s books. All bank payments have been verified with the bank statements and certificates of the balances on the accounts obtained … the bankers.

We have checked all cash and bank payments … the receipts and have to report that a number of small payments are unsupported … vouchers. It has been possible, however, to obtain other evidence to show that these disbursements were properly made. The cash books have been cast and all postings … the various ledgers checked … detail.

All invoices … respect of goods purchased and expenses incurred have been examined with the appropriate analysis of books, the totals of which have been checked. Several minor errors were detected which have now been rectified. The postings to the Creditors’ Ledgers have been test-checked, being far too numerous to do in detail. The balances … the individual Creditors’ accounts have been compared with special audit statements obtained from them and found to be … order. Our instructions did not require us to examine the Sales Ledgers and Day Books: we therefore report that in such work as we have performed we found no evidence of, or opportunity … defalcation or fraud.

Words you may need:

voucher – виправдувальний грошовий документ

authorization of accounts for payment – дозвіл на здійснення платежів з рахунків

handling of cash – використання готівки

cash balance – залишок касової готівки

cashier’s book – журнал касових операцій

bank statement – виписка з рахунка

receipt – квитанція

to obtain evidence – отримати доказ

disbursements – виплати

cash book – касова книга, журнал касових операцій

cast – підраховувати, підсумовувати

posting – проводка

ledger – бухгалтерська книга, бухгалтерський регістр

expenses incurred – понесені витрати

detect – виявляти

rectify – виправляти

Creditors’ Ledger – книга кредиторів

test-check – перевіряти за допомогою тестів

audit statement – аудиторський звіт

Sales Ledger – книга обліку продаж

Day Book – книга операцій робочого дня

defalcation – присвоєння чужих грошей

fraud – обман, шахрайство

3.A) Open the brackets putting the verbs in the correct form.

b) Discuss the content of the article.

Misuse of Public Funds

It is a universally accepted truth in Russia that the heads of many public funds habitually (to divert) trillions of rubles away from the stated purpose into lucrative deals for personal gain.

Over the first 10 month of this year, the Accounts Chamber, a watchdog of the State Duma, (to reveal) that nearly 1.8 trillion rubles, were not used for their designated purposes.

The auditors (to find) that nearly every fund was not using its money as it was supposed to. For instance, the Moscow branch of Russia’s Pension Fund (to buy) a building for about 2 billion rubles, (to spend) 11.5 billion rubles on its renovation and repair, and (to pay) another 6 billion rubles to an intermediary for “selecting the building preparing the necessary documents, and obtaining the consent of the parties concerned.” The Pension Fund (to misuse) more than 660 billion rubles despite the fact that people in some regions were left without pension payments for up to three months.

Many public funds (to set) up their own banks with charter capital running into hundreds of billions of rubles.

In spite of the obvious violations of regulations, all these operations cannot be put down as embezzlement without court rulings, and the violators are unlikely to be sued.

Misappropriations from extrabudgetary funds (to encourage) not only by people with a particular mentality and by a lack of adequate actions on the part of law-enforcement agencies, but also by the very system through which financial resources (to flow) from top to bottom. State extrabudgetary funds (to act) as an intermediary that collects payments and remits them to the recipients. Thus, they (to tempt) to “invest” the money in lucrative fast-yielding deals.

There would probably have been fewer cases of embezzlement and misuse of assets if public funds had initially been granted legal rights to earn money by, for example, transacting in securities and foreign-exchange valuables, and making short-term deposits in banks. So far the funds only (to have) a list of operations barred to them.

Words you may need:

misuse – зловживання

universally accepted – загальноприйнятий

habitually – звичайно

divert – відволікати, відводити

lucrative – прибутковий, вигідний

personal gain – особиста вигода

Accounts Chamber – Рахункова палата

designated purposes – вказані (заплановані) цілі

consent – згода

violation – порушення

embezzlement – розтрата

court ruling – постанова суду

sue – шукати в суді, переслідувати в судовому порядку

misappropriation – незаконне присвоєння, розтрата

remit – переводити (засоби)

recipient – одержувач

fast-yielding deals – угоди, що швидко приносять прибуток

valuables – цінності

bar – забороняти