Chartered accountant бухгалтер, бухгалтер-эксперт, аудитор

(certified public accountant, Am.)

Book бухгалтерская книга

Entry бухгалтерская запись, проводка

To post переносить в главную бухгалтерскую книгу

Ledger главная книга

Earnings доходы

Trial balance пробный баланс

 

Exercise 1. Complete according to the text:

Bookkeepers deal in …

Bookkeepers record …

The Ledger shows …

Trial balance are drawn up by … every …

The accountant is to …

Certified accountants in England are called ….

Certified accountants in the USA are called ….

Junior employees …

The chief accounting officer of a large company is …

Controllers are … and they …

This position is very close to …

EXERCISE 2. Complete the text using these words:

Bookkeeping

Credits debits double-entry

Journals ledger posted

Transferred trial balance

Bookkeepers record every purchase and sale that a business makes, in the order that they take place, in (1)…. At a later date, these temporary records are entered in or (2)… to the relevant account book or (3)…. Of course the "books" these days are likely to be computer files. At the end of an accounting period, all the relevant totals are (4)… to the profit and loss account. (5)… bookkeeping records the dual effect of every transaction – a value both received and parted with. Payments made or (6) … are entered on the left-hand (debtor) side of an account, and payments received or (7)… on the right-hand side. Bookkeepers will periodically do a (8) … to test whether both sides of an account book match.

Accountants, unlike bookkeepers, analyze financial records, and decide how to present them.

EXERCISE 3. Add appropriate verbs from the text above to these sentences:

1. Bookkeepers’.............. business transactions.

2. A debit is a payment...................

3. A credit is a payment...................

4. Debits are.............. on the left-hand side.

5. At the bottom of the page, bookkeepers.................... the totals.

6. The auditors.............. the accounts.

7. Accountants, managers and shareholders................... the accounts.

Exercise 4. Match the remarks on the left with the responses on the right:

ACCOUNTING

1. Are you an accountant? Does that mean you spend your time writing down credits and debits, and adding up columns of figures all day? Can’t be very exciting. 2. So what do accountants do? 3. You mean the shareholders? 4. So you prepare reports for managers? 5. And the cost of the accounts department! 6. You mean what they do in the front of shops? 7. Ah, now that’s interesting … 8. Not at all. As a matter of fact, I’m a tax inspector …

a. Ha! Now you’re going to ask me to tell you how you can pay less tax. b. No, managerial accountants do, but I work in cost accounting. We have to work out the real cost of each item the company makes, which means finding a way to allocate all the overheads to different products c. No, not only. Managers always need the help of accountants. They need financial statements, and budgets and cash-flow projections, and so on, to measure the success of what they’ve done, and to make decisions about allocating resources for future projects. d. Of course. But like I said, we’re necessary. And useful. Haven’t you heard of “window-dressing”? e. Sure, but it’s also another name for what some people call “creative accounting” – making a company’s financial situation look as good as possible in the balance sheet, and so on. It’s not very legal, but happens. The accountants in my firm also have lots of wonderful ways of reducing our tax bill. f. That’s bookkeeping. Not quite the same thing. g. Well, accountants do record cash flow, and the value of assets and liabilities, and they calculate profits and losses, and so on. But it’s not just writing down numbers. We’re really in the business of supplying people with information.

Text 7. AUDITOR AND THEIR REPORT

Auditors are usually independent certified accountants who review the financial record of a company. These reviews are called audits. They are usually performed at fixed intervals – quarterly, semiannually or annually. Auditors are employed either regularly or on a part-time basis. Some large companies maintain a continuous internal audit by their own accounting departments. These auditors are called internal auditors.

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.

Auditors see that current transactions are recorded promptly and completely. Their duty is to reduce the possibility of misappropriation, to identify mistakes or detect fraudulent transactions. Then they are usually requested to propose solutions for these problems.

Thus auditors review financial records and report to the management on the current state of the company’s fiscal affairs in the form of Auditor’s Report or Auditor’s Opinion.

Notes to the text:

Irregularity нарушение правил, неправильность

Misappropriation незаконное присвоение

Fraudulent обманный мошеннический

Exercise 1. Complete according to the text:

Auditors are….

These reviews are called…

Auditors are employed …

Currently outside audits are …

Auditor’s duty is …

Thus, auditors review …

Exercise 2. Fill in the missing phrases in the following sentences. Choose from the following:

Agree with blame for caused 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 orders.

4. The auditor must check that the records are ….... the company requirements.

5. The auditor must ask the ….. any large discounts or allowances.

6. The auditor …….. 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 3. Number the following words or expressions with their underlined equivalents in the text.

AUDITING

Accuracy; Annual General Meeting; board of directors; checking; deficiencies; determine; deviations, directives; external; implemented; ratifies; shareholder (GB) or stockholders (US); standard operating procedures; subsidiaries; a synonym; transnational corporations

The traditional definition of auditing is a review and evaluation of financial records by a second set of accountants. An internal audit is a control by a company’s own accountants, checking for completeness (1) exactness and reliability. Among other things, internal auditors are looking for (2) departures from (3) a firm’s established methods for recording business transactions. In most countries, the law requires all firms to have their accounts audited by an outside company. An (4) independent audit is thus a review of financial statements and accounting records by an accountant not belonging to the firm. The auditors have to (5) judge whether the accounts give what in Britain is known as a “true and fair view” and in the US as a “fair presentation” of the company’s (corporation’s) financial position. Auditors are appointed by a company’s (6) most senior executives and advisors, whose choice has to be (7) approved by the (8) owners of the company’s equity at the (9) company’s yearly assembly. Auditors write an official audit report. They may also address a “management letter” to the directors, outlining (10) inadequacies and recommending improved operating procedures. This leads to the more recent use of the word “audit” as (11) an equivalent term for “control”.

(12) Multinational companies, for example, might undertake inventory, marketing, and technical audits. Auditing in this sense means (13) verifying that general management (14) instructions are being (15) executed in branches (16) companies which they control, etc.

Exercise 4.

Add appropriate words to these phrases:

10. Auditors … company’s accounts.

11. Accounts have to … a fair presentation.

12. Auditors write a …

13. It’s the directors who … the auditors.

14. Auditors sometimes … better accounting procedures.

15. Using external auditors is a … requirement.

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