V. Uncertainty Expression Terminology.

Listed below are 15 common words or phrases that are used to express certainty or uncertainty. Beside each item, please write the probability number (from 0.01 to 0.99) which most clearly reflects the degree of probability implied by beach word or phrase.

1. unlikely _________

2. extremely doubtful ______________

3. low probability __________

4. likely _________

5. high probability ____________

6. minimal likelihood ______________

7. very unlikely _______________

8. probable ______________

9. very likely ______________

10. reasonably possible ___________

11. excellent chance _____________

12. remote ______________

13. possible ______________

14. slight ______________

15. highly probable __________

VI. Match the following terms (1-14) with the correct definition (a-n) on the right.

1. statutory audit	a) official document stating the internal rules of the company
2. continuous audit	b) following one after another without a brake
3. Memorandum of Association	c) this checks that controls are operating efficiently
4. Articles of Association	d) required by law
5. walk through test	e) money received from one debtor is wrongly recorded to another
6. compliance test	f) regulates the company’s relationship with the public
7. substantive test	g) testing a small number of representative items
8. teeming and lagging	h) carried out all the time
9. auditor	i) following documents or transactions through the system
10. prior period	j) piece of work you are given to do
11. audit assignment	k) careful study of all the details
12. corroborate	l) accountant who examines a firm’s accounts
13. statistical sampling	m) previous length of time
14. consecutive numbers	n) make sure it’s true with more information

VII Read this example of an extract from an independent auditors’ report in the usa and answer the questions.

1. According to the report, an audit does several things. What is mentioned?

2. What documents did the auditors look at?

3. In what ways is this report different from those used in your country?

To Share Owners and Board of Directors of Megatrap Corp.

We have audited the accompanying statement of financial position of Megatrap Corp and consolidated affiliates as of December 31, 2007 and 2006, and the statements of earnings, changes in share owners’ equity and cash flows for each of the years in the three-year period ended December 31, 2007. These consolidated financial statements are the responsibility of the Company’s management. We have to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the USA. Under these standards we have to plan and perform the audit to obtain reasonable assurance that the financial statements do not have any material misstatement. We examined on a test basis the evidence supporting the figures and disclosures in the financial statements. We also assessed the accounting principles used and significant estimates made by management, and we evaluated the presentation of the statements.

In our opinion, the aforementioned financial statements present fairly, in all material respects, the financial position of Megatrap Corp and consolidated affiliates at December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the years in the three-year ended December 31, 2007, in conformity with accounting principles generally accepted in the USA.