Accounting in the Information Age



Мы поможем в написании ваших работ!


Мы поможем в написании ваших работ!



Мы поможем в написании ваших работ!


ЗНАЕТЕ ЛИ ВЫ?

Accounting in the Information Age



Accounting is an information and measurement system that aims to identify, record, and communicate relevant, reliable, and comparable information about economic activities. It helps us better assess opportunities, products, investments, and social and community responsibilities. The power of accounting is in opening our eyes to new and exciting opportunities. The greatest benefits from understanding accounting often come to those outside of accounting. This is because an improved understanding of accounting helps us better compete in today's world.

There are both internal and external users of accounting. Some users and uses of accounting include: (a) management for controlling, monitoring, and planning; (b) lenders for measuring the risk and return of loans; (c) shareholders for assessing the return and risk in acquiring shares; (d) directors for overseeing management; and (e) employees for judging employment opportunities. Other users are auditors, consultants, officers, regulators, analysts, unions, suppliers, and appraisers.

The goal of accounting is to provide useful information for decision making. For information to be useful it must be trusted. This demands ethics and socially responsible behavior in accounting. Without these, accounting information loses its reliability.

Opportunities in accounting and related fields are numerous. They include traditional ones like financial, managerial, and tax accounting. They also include accounting-related fields such as lending, consulting, managing, and" planning. We can even identify nontraditional opportunities with accounting knowledge including careers as a community activist, political consultant, reporter, salesperson, union official, entrepreneur, programmer, engineer, and mechanic. There are millions of individuals employed in accounting and accounting-related fields.

 

XIII. Read and remember some English idioms useful for businessmen:

4. Cook the books - to falsify the accounts for a dishonest purpose; фальсифікувати рахунки.

5. Creditor side - the credit side of an account; кредит рахунку.

6. Catch someone off balance - to surprise someone; здивувати когось; заскочити когось.

 

LESSON 7

I. Read the following words and word combination and learn their meanings by heart:

Audit, auditing - аудит; an auditor - аудитор; an evaluation - оцінка; confidence - довір'я; a presentation - представлення; complete - повний, закінчений; exact - точний; reliable - надійний; departure - відхід, відхилення, відступ; judge -судити, суддя; fair - справедливий; to appoint - призначити; to approve - затверджувати; to link (with) - з'єднувати; joint-stock - акціонерний капітал; to run - управляти; running - управління; to entrust - довіряти; staff - персонал; assurance - гарантія; prevention - запобігання; a fraud - шахрайство; an investigation - розслідування, дослідження; an error - помилка, огріх.

II. Read and translate the text:

AUDITING

Auditing is closely connected with Accounting. The traditional definition of auditing is a review and an evaluation of financial records by a second set of accountants.

There is another more modern definition. "An audit is the independent examination of and expression of opinion on the financial statements of an enterprise by an appointed auditor in compliance with statutory obligation." (David Choppy).

The main purpose of the audit is to give the user of the financial statements confidence that they give a true presentation of the position of the company at a certain date. There are two types of audit.

An internal audit. It is a control by a company's own accountants. They check for complete, exact and reliable data. Internal auditors also look for departures from the methods for recording business transactions which are established by a company.

An independent audit is a review of financial statements and records by an accountant not belonging to the company. Such auditors have to judge if the accounts present a true and fair view of the company's financial position.

In the USA they use the term "a fair presentation'' which means the same what British term "a true and fair view" means.

Who appoints auditors? Senior executives and advisors of the company do it. Then the candidates are to be approved by the owners of the share capital at the company's assembly (meeting).

Auditors write an audit report. They also may write a "management letter" to directors. They may underline some weak points and recommend to improve operating procedures.

The creation of the audit function is linked to the growth of the joint-stock company. Shareholders are often not involved in the day-to-day running of a company. They entrust this role to the directors. The directors, in their turn, need to account to the members of the company during each financial period.

The role of financial statements is to show the way the company was run during this period. Therefore, the report of the auditor is addressed to the members of the company.

The auditor tries to ensure that the accounts give a true picture of the position. To achieve this the auditor needs to go beyond the accounting function within the company.

The auditor often looks at the way in which the other parts of the business work. It is common for the auditor to discuss the activities with the members of staff working in different departments of the company, not only in the accounting or finance departments. The understanding of the business as a whole is very important for auditing.

It is also important to keep in mind such two points. First, the auditor gives his opinion in the report. The latter gives some level of assurance. But this assurance is never considered to be absolute. Second, the auditor has no duty relating to the prevention of fraud or other errors.

On the other hand, if the auditor does find any fraud he must make further investigations.

 

III. Retell the text according to the following questions:

1. What subject is audit closely connected with? 2. What is auditing? 3. What is the main purpose of auditing? 4. How many types of audit are there? 5. What is the difference between internal and external auditors? 6.What is the difference between the terms "a fair presentation" and "a true and fair view"? 7. Who appoints auditors? 8. Who approves the candidates? 9. Who writes "a management letter" to directors? 10. Do you see any difference between an audit report and a management letter ? If you do, explain it.

 

IV. Arrange the words into pairs of:

a) synonyms:

Require, a number of, demand, independent auditor, many, purpose, adhere to, support, external auditor, aim, opinion, point of view, stick to, assembly, true, meeting, fair, back.

b) antonyms:

Unqualified, non-members, sometimes, independent audit, qualified, state, oppose, always, members, truth, lie, dishonesty, fairness, internal audit.

 

V. Translate from Ukrainian into English:

1. Аудитором може бути громадянин України, який має вищу економічну освіту та безперервний (uninterrupted) стаж роботи. Це робоча аудитора, бухгалтера, ревізора, фінансиста, юриста. 2.Директором аудиторської фірми має бути тільки сертифікований аудитор. 3. В аудиторській фірмі не менше 70% статутного капіталу має належати сертифікованому аудитору. 4. Аудиторська фірма має право надавати аудиторські послуги за умови, якщо в її штаті (staff, personnel) працює хоча б один сертифікований аудитор. 5. Сертифікацію аудиторів здійснює АПУ (Аудиторська Палата України). 6. Норми та стандарти аудиту є обов'язковими для дотримання підприємствами, установами та організаціями. 7. Аудиторська Палата України затверджує норми та стандарти аудиту.

 

VI. Translate from English into Ukrainian. Replace the Infinitives in brackets by the Past Indefinite or the Past Perfect:

1. He already (to prepare) a report "Requirements for Additional Audit Information". He made it on Monday. 2. This information (to involve) the past business experience of the firm. 3. The man just (to explain) the purpose of investment. Didn't you understand his point of view? 4. By the 5th of July they (to possess) the building and capital. 5. Auditors informed that they not (to find) any fraud in the case. 6. The judge at that trial said that they (to exercise) control over the matter in the past.

 

VII. Match the questions with the answers:

1. What companies are required to publish accounting (financial) statement.

2. What is the difference between auditing and inspection?

3. How much is the auditor's job connected with the field of law, jurispundence?

4. Does the auditor take part in investigation? I mean does he or she participate in trials?

5. What is the main function of the auditor?

6. What I know is that the auditor's report is a brief statement. It is addressed to the members of a company. There are two types of report. What are they?

a) Auditing is an independent financial control. It is carried out on contract basis between an owner and an auditor. Inspection is a state control. The aim is to find out breach, violation (порушення).

b) These are such companies as commercial banks, insurance companies, trusts, joint-stock companies and other financial institutions.

c) Well, first of all, the auditor must know the business law, the economic legal mechanism, tax code

d) The main duty of the auditor is to report on the truth and fairness of the financial statement.

e) The auditor never investigates for a trial. He or she never performs functions of lawyers, judges or prosecutors. Everyone in this life should know his business, you know.

f) Yes, that's right. There is "a qualified report" and "an unqualified report". Next time I'll explain the difference.

 

VIII. Read and translate jokes:

Employee - "I have been 10 years doing three men's work for one man's pay. Now I want a raise".

Employer (slightly Scotch) - "I can't give you a raise but if you'll tell me who the other two men are I'll discharge them".

***

The company commander asked the company.

"Where do you keep your papers?" "In a strong box,

sir." "Is it reliable?"

"Yes, it is. You can't open it with any key." "How do

you open it then?" "With a nail", was the reply.

 

IX. Match the word on the left with the statement on the right:

 

1. Listed company A term used to describe membership on an exchange,

2. A broker Fee paid to a broker for executing a trade.

3. Market price A company whose securities are traded on an

4. Asked quotation organized exchange.

An employee of a stock exchange who accepts buy and sell

5. Commission orders from customers. Last reported price at which a security

was sold on an exchange.

6. Seat Price at which a security is offered for sale on an exchange.

 



Последнее изменение этой страницы: 2016-06-29; Нарушение авторского права страницы; Мы поможем в написании вашей работы!

infopedia.su Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав. Обратная связь - 35.173.35.159 (0.01 с.)