Exercise 12 Match the following sentences with the words or phrases on the right.

1 The holder of these has lent the company money but has no voting rights. 2. A group of six accountants have decided to form an association to carry on business in common and make a profit. 3 The investors give these people the power to run the company. 4 This company holds more than 50% of the voting shares in another company. 5 Members of the public can only invest in this company if they are invited to do so. 6 Investments in many companies can be made by buying shares on this market. 7 The public at large can be share holders in this company. 8 The golf club was set up with the intention of not making profit. 9 Fifty-one per cent of the voting shares of this company are held by another company. 10 This is the meeting which is held once a year for the shareholders. 11 This exists when several companies are in a relationship of owning and being owned.

a) subsidiary b) group c) not-profit-making d) stock exchange e) partnership f) directors g) private limited h) debentures i) public limited j) holding company k) annual general meeting

 

Exercise 13 Fill in the missing prepositional phrases in the following sentences. Choose from the following:

agree with, blame for, cased by, difference between, in line with, insist on, reason for, refer to, responsible for, suspicious of

 

1. The auditor discovered that there was a ….. the cash book and the bank balance. 2. If the entries in the accounts are not clear, he can ….. the original invoices. 3. You must ….. an official signature on all large order. 4. The auditor must check that the records are ….. the company requirements. 5. The auditor must ask the ….. any large discounts of allowances. 6. The auditor is ….. checking the reason for any changes in the accounts. 7. The authorities will ….. the auditor ….. any mistakes in the accounts. 8. The auditor must check that the purchase invoices ….. the entries in the Purchases Journal. 9. The auditor should be ….. any short-cut methods of correcting errors. 10. Mistakes may be ….. the wrong steps used in the original accounting process.

 

Exercise 14 Fill in the gaps to complete the passage, choosing from the words in the box. The first one has been done for you.

accounts, books, receipts, public, firms, stocks, write down, depreciate (знецінюватися), Companies, VAT (=value added tax,), reconcile (узгоджувати), invoices (рахунки-фактури), auditors, Exchange, annual

 

An official examination, the audit, is made of the accounts of a business; this is usually done once year. Independent ….. descend («нагрянути») on a company and examine all the company’s accounts for the previous year; this is known, colloquially, as ‘checking the …..’.

The auditors attempt to ….. all the bank statements, checking them against the ….. and …... They check all the company’s …..; if the value of any of them has decreased during the year, they ….. ….. its value to a realistic one – many items ….. with time and use. Although ….. returns (звітні дані) have to be submitted to the Customs and Excise authorities every three months, they are checked again during the audit.

A ….. company – one of which the shares are quoted on the Stock ….. – must lodge (передавати інформацію) its accounts in ….. House, where they are available to the public, and to possible investors.

The ….. audit is a legal requirement in Britain; many professional ….. of accountants only do this work and do not need to undertake any other type of work.

 

Exercise 15 Read the texts about becoming an accountant in the United States and the United Kingdom. How does the process of becoming an accountant in Ukraine compare to those describe above?

CPA

The body which represents the interest of accountants in the U.S. is the American Institute of Certified Public Accountants (AICPA). To become a CPA, the applicant must meet the requirements of the state where he/she wishes to practice, as established by the law of that state and administered by the state boards of accountancy.

To qualify for certification, the applicant must:

1. study accountancy at a collage or university

2. pass the CPA examination, which consists of four sections:

· Business Law and Professional Responsibilities

· Auditing

· Accounting and Reporting – Taxation, Managerial, and Governmental and Not-for-Profit Organizations

· Financial Accounting and Reporting – Business Enterprises

3. have professional work experience in public accounting.

 

Most states require a qualified CPA to carry out regular professional training.

 

Chartered Accountant

The major accounting body in the U.K. is the institute of Chartered Accountants in England and Wales (ICAEW).

To become a Chartered Accountant, the applicant must:

1. have sufficient school or university education

2. apply for a training contract with a recognized company, which will give him/her three years’ work experience

3. pass the ICAEW’s exams on:

· Accounting

· Audit and Assurance

· Business Finance

· Business Management

· Financial Reporting

· Taxation

4. as well as prove his/her knowledge on Commercial and Common Law, and then with further exams on:

· Business Environment

· Business Life Cycle

· Advanced Case Study

 

Exercise 16 Write a report describing the general accounting rules and practices in Ukraine. What standards are used to prepare financial information? How is off-balance-sheet accounting treated in your country? How is leasing reported in accounts?