Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
УМК УФФ 2009.doc
Скачиваний:
3
Добавлен:
22.11.2019
Размер:
897.54 Кб
Скачать

Text 3 Auditing

Auditing is the process by which a competent, independent person accumulates and evaluates accounting information of any organization. The purpose of this process is to determine and report on the degree of correspondence between this information and established criteria. Another purpose is to determine whether recorded information properly reflects the economic events that occurred during the accounting period.

Auditors are usually independent certified accountants who review the financial records of a company. These reviews are called audits. They are usually performed at fixed intervals – quarterly, semiannually or annually. Auditors report to the management on the current state of the company’s fiscal affairs in the form of Auditor’s Report.

Some large companies maintain a continuous internal audit by their own accounting departments. These auditors are called internal auditors. Internal auditors are known to be hired by the company in order to help to identify accounting weakness and correct them before significant errors occur.

Independent auditors are employed by a company's board of directors to supply the stockholders with the results of checking the financial statements, in order to prove that annual reports are fair representations of the financial position of the company.

Performing his work the auditor should follow several principles and assumptions: the company's accounts must represent a true financial position; generally accepted accounting principles must be used at all accounting steps; the proper amount of information must be disclosed in the financial statements. As a result, the auditor's opinion should be based only on facts and it must be objective.

Not so many years ago the presence of an auditor suggested that a company was having financial difficulties or that irregularities had been discovered in the records. Currently, however, outside audits are a normal and regular part of business practice.

Text-based Exercises

Ex.1. The text contains a number of common verb-noun partnerships (e.g. to accumulate information; to be based on facts.) Match up the verbs and nouns below to make such common collocations. Translate them into Russian.

to follow accounting information

to have the economic events

to supply the financial records

to be employed by the management

to maintain a continuous internal audit

to evaluate the company

to review accounting weakness

to report to a company's board of directors

to be hired by the stockholders

to represent several principles

to reflect a true financial position

to identify financial difficulties

Ex.2. Find in the text the nouns which are defined by the following adjectives. Read the word combinations (adjective +noun) and translate them into Russian.

Accepted, accounting, annual, business, continuous, certified, competent, current, established, fair, financial, fiscal, fixed, independent, internal, normal, objective, outside, proper, regular, significant.

Ex.3. Complete each sentence in the most suitable way by putting one of the words into each space.

1. Auditing is the … by which a competent, independent …accumulates and evaluates accounting … of any… . (information, person, process, organization)

2. The … of this process is to determine and report on the … of correspondence between this information and established … . (criteria, degree, purpose)

3. Another … is to determine whether recorded … properly reflects the economic … that occurred during the accounting… . (information, purpose, period, events)

4. … are usually independent certified … who review the financial … of a company. (accountants, records, auditors)

5. Auditors report to the … on the current … of the company’s fiscal … in the … of Auditor’s Report. (state, affairs, form, management)

Ex.4. Which of the following ideas agrees with what the text says?

1. Companies never maintain an audit by their own accounting departments.

2. Auditors are known to be hired by the company in order to help keep records of its business activity.

3. Independent auditors are employed by a company to identify accounting weakness and correct them.

4. As a rule, auditors determine if annual reports are fair representations of the financial position of the company.

Ex.5. Summarize the 5th paragraph by listing the principles, which an auditor should follow performing his work.

Ex.6. Read the statements below. Which of them best expresses the main idea of the last paragraph?

1. In the recent past the presence of an auditor suggested that a company was having financial difficulties.

2. From time to time every company hires an auditor to discover irregularities in financial statements.

3. Now outside audits are a normal and regular part of business practice.

Ex.7. Check yourselves. Answer the following questions to be sure you can speak on the topic “Auditing”.

1. What is auditing?

2. What is the first purpose of auditing?

3. What is another purpose of auditing?

4. What kind of accountants are auditors?

5. How are auditors’ reviews called?

6. How often are audits performed?

7. Do auditors report to the management of the company?

8. How do large companies maintain an internal audit?

9. What are internal auditors hired for?

10. Why are independent auditors employed by companies?

11. What should the auditor follow performing his work?

12. What are these principles?

13. What should an auditor's opinion be?

14. What did the presence of an auditor suggest not so many years ago?

15. What are outside audits now?

Ex.8. Get ready to speak on the following issues.

1. Auditing and its purposes.

2. Internal and independent auditors.

3. Principles and assumptions of an auditor’s work.

Тут вы можете оставить комментарий к выбранному абзацу или сообщить об ошибке.

Оставленные комментарии видны всем.