Unit 35. Auditing Active Vocabulary

auditing accounting function review evaluation audit auditor outside (external) audit internal audit accounting department fiscal affairs books the standard operating procedures accounting records	перевірка звітності  облікова функція  перевірка оцінювання, оцінка, аналіз аудит, перевірка, аудиторська  перевірка аудитор, бухгалтер зовнішній аудит внутрішній аудит бухгалтерія   фінансові справи бухгалтерські книги стандартні методи роботи бухгалтерські рахунки,  документація
accurate adequate accessible CPA  (certified public account) paperwork inventory (stock-taking) calculation balance keeping data carrier legal force mean of smth. a mean of checking values according to the auditing control of the enterprise property money measure real price system of the indexes	точний, правильний що відповідає вимогам, відповідний доступний дипломований бухгалтер       документування інвентаризація калькуляція, розрахунок  балансова звітність  носій інформації юридична сила засіб засіб перевірки цінностей і    зіставлення з даними бухгалтерського обліку контроль власності підприємства грошовий вимір собівартість система показників

Auditing is an accounting function  that involves the review  and evaluation of financial records of a company. It is done by auditors. These reviews  are called audits. 

Outside/external  audits are a normal and regular part of business practice. In addition, many corporations maintain a continuous internal audit by their own accounting departments. They review operating procedures and financial  records and report to management on the current procedures and financial records and report to management on the current state of the company’s fiscal affairs. The internal auditors make suggestion to management for improvements in the standard operating procedures and check the accounting records. 

Independent auditing is done by accounts who are not employees of the organization whose books they examined. The independent accountant is almost always a CPA. Independent accountants review the business’s operating activities they examine financial statements and the accounting records.

Auditing consists of paperwork, inventory, (stock-taking), accounting records, evaluation, calculation, accounts, balance keeping.    

Paperwork involves company’s activity information on the different data carrier which enable it legal force. 

Inventory is a mean of checking values according to the auditing.

Accounting records mean the control of the enterprise property.

Evaluation means evaluation enterprise assets into money measure.

Calculation is mean of calculation real price. Real price is the determined price of the produced product.

Balance keeping is the keeping information of the enterprise assets and its formation.

Accounting records is the system of the indexes which show financial   activity of enterprise.      

Exercise 1. Give the English for:

перевірка та аналіз фінансових документів,  аудитор,  зовнішній аудит, внутрішній аудит, бухгалтерія, фінансові справи компанії, перевіряти бухгалтерську документацію, стандартні методи роботи, точна інформація. 

Exercise 2. Match words from list A with words from list B that have a similar meaning: 

                  A                                           B

          outside audit                      uncontrolled

          review                                process

          evaluation                           sufficient

          check                                 achievable

          accounting records             examine

          accurate                             examination

          inventory                            analysis

          adequate                            correct

          accessible                           bills

          procedure                           stock-taking

          independent                      external audit  

Exercise 3. Match the words and phrase with the correct definition from the list below:

financial statement, evaluation, audit, internal audit, auditor, external audit, standard operating procedures, books;

1. a detailed inspection of the accounts of an organization by a professionally trained person;

2. an audit carried out by a person not employed by the company to check that the accounts are accurate and honest;

3. a professionally trained person who examines the accounts of an organization that they are true and correct;

4. a review and evaluation of a company’s financial records by employees of the same company;

5. an organization’s established methods of carrying out its operating and recording functions;

6. an analysis, study;

7. the books, files or computer records where a company’s accounts are kept;

8. a report showing profit and loss for a business or institution.      

Exercise 4. Put the necessary word into the sentences:  

accurate, an evaluation, fiscal affairs, financial records, outside audits, an internal audit, the books, independent accountants, the accounting, audit, the auditors.

1. … were called in to  inspect the accounts.

2. An accountant did a year-end … of our financial records.

3. …firm audited the company every year.

4. … are not employees of the organization whose books they examine.

5. The tax inspector wants to examine … .

6. Many companies employ their own accountants to maintain … .

7. … are a normal and regular part of business practice.

8. Auditors review … and report to the management on the current state of the company’s 9. … in the form of an Auditor’s Report.

10. An account did … of the company’s financial state.

11. The numbers in the report are … .

Exercise 5. Answer the following questions:

1. What is an auditing?

2. Who carries out audits?

3. What is an internal audit?

4. What do internal auditor review?

5. What do the independent auditors review?

6. What is the paperwork?

7. What is the inventory (stock-taking)?

8. What is the accounting records?

9. What is the evaluation?

10. What is the calculation? 

11. What is an accounting records?

12.What is the balance keeping?     

Exercise 6. Indicate true or false statements:

1. The people who keep the financial records for an organization are the same people who carry out an audit records.

2. An external auditor is only invited when a company is having financial difficulties.

3. The more internal control an organization has, the more efficient is its performance.

4. Many companies nowadays employ accounts of their own to maintain a continuous internal audit.  

5. Internal auditors try to make sure that the operating sections of a company follow the policies established by management.

6. The reports of internal auditors always reach the people in management.

7. CPAs seldom do independent auditing.

8. Only very large corporations need external audits. 

Exercise 7. Sum up what you remember:

• auditing;

• internal audits;

• independent audits.