Exercise 11 Match these words with their meanings.

1 debt 2 lease 3 gearing 4 liabilities 5 contract 6 transaction 7 shareholder

a an agreement between two or more parties, often written b the opposite of assets c buying or selling something d someone who owns parts of a company e money that is owed f an agreement where the owner of something allows someone else to use it for a specific time for a sum of money g the proportion of own capital to borrowed funds when buying an asset or financing a company

 

Exercise 12 Use liability, liabilities, debt, or debts to complete the sentences below.

1. He’ll have paid his ….. off by next year. 2. Look at the assets and ….. on the balance sheet if you want to know how the company’s doing. 3. Many developing countries are burdened by heavy …... 4. We need to look at the long-term ….. before we think about any major new purchases. 5. The partnership has limited ….. status. 6. Current ….. are those which are paid off within a year. 7. The company’s in ….. to the tune of 10 million.

 

Exercise 13 a) Here are some ways to agree or disagree with someone. Say which of them mean agreement, and which mean disagreement.

1. You’ve got a point there. 2. I see what you mean. 3. Me neither.

4. No way. 5. It’s just not on. 6. Fair enough. 7. Point taken.

 

Now use the above expressions to respond to the following statements. Note that more than one answer is possible.

1. I think we should work fewer hours. I mean, almost everyone else in this company now works 35-your week, and look at us! ‘__________ ‘

2. Can you come in next weekend? ‘What again? __________’

3. ‘I’d like you to prepare the figures for next week’s presentation. But this time could you make sure that you put our current client’s name on the slides.’ ‘__________’

4. ‘We need to finish this by next Wednesday. How about if we postpone the department party? There’s no other way.’ ‘___________’

5. ‘Have you had a look at this? It’s a disaster, a catastrophe!’ ‘Hang on, it can’t be that bad. Ah, __________.’

6. ‘Look, we really need to convince the boss that some of the transactions have been wrongly booked. I don’t want problems later.’ ‘__________’

7. ‘They want us to take a pay cut this year.’ ‘Are you kidding? __________’

 

 

U N I T 3

AUDITING

Active Vocabulary

ascertain – v встановити, удосконалитися

validity – n юридична сила, законність

reliability – n надійність

assessment – n оцінка, оцінювання; assess – v оцінювати

internal – adj внутрішній, ant external

express – v висловити

due to – prep із-за, тому що

constraint – n обмеження

assurance – n гарантія, впевненість

material error – суттєві помилки

hence – adv тому, через те що

statistical sampling – статистична вибірка

adopt – v приймати, використовувати

fair – adj справедливий; fairness – n справедливість; fairly – adv справедливо

misstatement – n помилкове твердження

influence – v впливати на

gain – v добувати

security risk – ризик, пов’язаний з порушенням техніки безпеки

environmental performance – діяльність, пов’язана з охороною навколишнього середовища

conduct – v проводити, здійснювати

issue – v випускати; issuance – n випуск, видання

adhere to – триматися чогось, відстоювати

entity – n економічна одиниця

irrespective of – незважаючи на

thereon – adv на цій підставі

remain – v залишатися

in accordance with – згідно з

borrow – v позичати

stock – n запаси, склад; stock exchange – фондовий ринок

regarding – prep у відношенні

accurately – adv точно, безпомилково

accompanying – adj супровідний

relate – v бути пов’язаним, відноситися

retain – v утримувати

earning(s) – n заробіток

cash flow – потік грошей

require – v вимагати, повинно бути

reasonable – adj розумний

evidence – n доказ

disclosure – n представлення облікової інформації

significant – adj значний, важливий

estimate – n оцінка, оцінювання

overall – adj загальний, цілий

 

Exercise 1 Change the italicized words for their synonyms from the active vocabulary.

To do the work perfectly, durability of equipment, to take into account restrictions, a just statement, to effect the environment, to obtain results, to carry out the research, regardless of the weather forecast, the sign of their presence, an important matter, general approach.

 

Exercise 2 a) Match the verbs with their explanations.

1) conduct 2) express 3) perform 4) ascertain 5) influence 6) gain 7) retain 8) remain 9) borrow

b) to do work, a task, of duty c) to find out the true or correct information d) to show a feeling, an opinion e) to have an effect on something f) to obtain or win something g) to do a particular activity (test, experiment) h) to continue to be in a certain state i) to take and use something that belongs to somebody else j) to keep something

 

b) Fill in the gaps with the verbs from section a) in an appropriate tense form.

1. You could ….. some money from your uncle without paying interest. 2. Many of his ideas ….. popular support. 3. Parents ….. their concerns about their children’s safety. 4. We ….. a survey of consumer attitudes towards organic food. 5. Several factors are likely to ….. this decision. 6. Many scientists ….. unconvinced by the current evidence. 7. Tests were conducted to ….. whether pollution levels have dropped. 8. The official opening ceremony was..... by Princess Margaret. 9. The state wants to ….. control of food imports.

 

Text

The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system’s internal control. The goal of an audit is to express an opinion on the person, organization, or system in question, under evaluation based on work done on a test basis. Due to practical constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits. In the case of financial audits, a set of financial statements are said to be true and fair when they are free of material misstatements – a concept influenced by both quantitative and qualitative factors.

Audit is a vital part of accounting. Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business. However, recent auditing has begun to include other information about the system, such as information about security risks, information systems performance (beyond financial systems), and environmental performance. As a result, there are now professions conducting security audits, IS audits, and environmental audits.

In financial accounting, an audit is an independent assessment of the fairness by which a company’s financial statements are presented by its management. It is performed by competent, independent and objective persons known as auditors or accountants, who then issue an auditor’s report based on the results of the audit.

Such systems must adhere to generally accepted standards set by governing bodies regulating businesses; these standards simply provide assurance for third parties or external users that such statements present a company’s financial condition and results of operations ‘fairly’.

The Definition for Auditing and Assurance Standard (AAS) is ‘Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view of expressing an opinion thereon’.

Auditing, the oldest area of practice, remains the largest for many firms. An audit is a CPA’s (Certified Public Accountants) examination of a company’s financial statements in order to express an opinion about the fairness of those statements in accordance with generally accepted accounting principles. When a company wants to borrow funds from a bank or have its stock listed on a stock exchange, it must present statements regarding its financial affairs. Because these statements are prepared by independent auditors, those interested in the information know it has been presented fairly and accurately.

 

AUDITORS REPORT

Board of Directors, Stockholders, Owners, and/or Management of ABC Company, Inc.
123 Main St. Anytown, Any Country

We have audited the accompanying balance sheet of ABC Company, Inc. (the ‘Company’) as of December 31, 2009 and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in Ukraine. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2009, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in Ukraine.

AUDITOR’S SIGNATURE
Auditor’s name and address

Date of the report’s issuance