Auditing

The profession of the auditor is considered to be one of the most prestigious and well-paid. Auditors are accountants who analyze financial statements of the company and their responsibility is to express an opinion as to whether the accuracy of the company's financial reporting meets the requirements imposed by the government. In general, auditors deal more with operating efficiency and managerial effectiveness than with the accuracy of the accounting data.

Internal auditors are known to be hired by the company in order to help to identify accounting weaknesses and correct them before significant errors occur. They are often analytically minded people who make flowcharts of accounting systems and evaluate these flowcharts to suggest improvements in division of labour, paper flow, cash control, or other accounting responsibilities.

Independent auditors are employed by the company's Board of Directors to supply the stockholders with the results of checking the financial statements, in order to prove that annua) reports are fair representations of the financial position of the company. Performing his work the auditor should follow several principles and assumptions: the company's accounts must represent a true financial position; generally accepted accounting principles have been used at all accounting steps and accounts can be compared with, those of similar companies; the proper amount of information is disclosed in the financial statements. As a result, the auditor's opinion should be based only on facts and it must be objective. Auditors are expected to maintain the relationship of strict independence and professionalism with the companies for whom they work, so they mustn't hold shares in these companies. On the one hand, the auditor should respect the client's confidence, so having the access to some private information the auditor must not spread it outside. On the other hand, he should think of public interests, that is why he must publish his opinion in a standard form and the information is to be clear to the stockholders. But he must always carry out his duties under the law and inform authorities about fraud.

Задание 19.

Выберите правильный вариант ответа на вопросы к тексту.

1. What do auditors analyze?

a) wages calculation

b) cost budgeting

c) complex system of financial statements

2. Why should an auditor be totally independent in his job?

a) because he should represent the interests of the company he carries out an audit for

b) because he must carry out auditing in accordance with the law

c) because he is a member of the Board of Directors

3. Who are internal auditors hired by?

a) the company's shareholders

b) the company`s Board of Directors

c) some independent organizations

Задание 20.

I. Закончите предложения по содержанию текста.

1. Internal auditors are employed _____.

a) to merge the companies

b) to suggest upgrading accounting responsibility

c) to analyze managerial effectiveness

2. Independent auditors are hired _____.

a) to supply shareholders with bonuses

b) to inform the shareholders about the changes within the company

c) to prove that annua! reports are fair representations of the company's financial position

3. The proper amount of information is disclosed _____.

a) in the financial statement

b) at press conferences

c) in reports at official meetings

4. The profession of the auditor is considered to be _____.

a) well-paid

b) one of the less prestigious

c) a badly-paid one

5. The company's accounts must represent _____.

a) shareholders' opinion

b) flowcharts of the accounting system

c) a true financial position

Задание 21.

Подберите эквивалент к данному русскому слову или словосочетанию.

1. исправление ошибок

a) error correction b) statistical correction c) net balance correction

2. независимый бухгалтер ревизор

a) assistant auditor b) independent auditor c) internal auditor

3 смета

a) statement b) fund c) debt

4 блок-схема

a) bar chart b) diagram c) flowchart

5. данные

a) date b) data c) datum

6. выполнять

a) spread b) carry out c) evaluate

15. доверие

a) confidence b) respect c) privacy

Задание 22.

Выберите русское предложение, наиболее точно передающее содержание предъявленного.

1. Auditor's responsibility is to express an opinion as to whether the accuracy of the company's financial reporting meets the requirements imposed by the government

а) Аудитор отвечает за точность финансового отчета компании, чтобы отвечать правительственным требованиям.

b) Правительство требует, чтобы действия аудитора соответствовали требованиям компании.

с) В обязанности аудитора входит составление заключения о соответствии финансового отчета компании государственным требованиям.

2. International auditors are known to be hired in order to help to identify according weaknesses errors occur.

а) Известные внутренние аудиторы нанимаются компанией для опознания их слабых сторон и исправления всех ошибок.

b) Внутренних аудиторов, как известно, нанимают компании для того, чтобы вскрыть незначительные погрешности бухгалтерского учета и исправить их во избежание грубых ошибок.

3. On the one hand, the auditor should respect the client's confidence, on the other hand, he should think of public interests.

а) С одной стороны, аудитор должен уважать доверие клиента, с другой стороны, он должен заботиться об общественных интересах.

b) С левой руки, аудитор должен уважать доверие клиента, с правой - общественные интересы.

с) По левую руку у аудитора должно стоять уважение клиента, по правую - интересы общественности.

Задание 23.

Выберите английское предложение, наиболее точно передающее содержание предъявленного.

1. The profession of the auditor is considered to be well-paid.

a) People think that to get the profession of the auditor one should pay much.

b) If people want to be auditors, they should pay much.

c) In public opinion people working as auditors get a lot of money.

2. They evaluate these flowcharts to suggest improvements in division

of labour.

a) By analyzing the flowcharts they propose how to increase accounting efficiency.

b) The data published in annual reports disclose the true situation in financing.

c) They calculate the fines to be charged for errors to improve financial situation in the company.

3. Generally accepted accounting principles have been used at all accounting steps.

a) Doing accounting it is necessary to avoid troubles.

b) Making a fiscal account it is important to use fair information.

c) A set of basic instructions have been strictly observed while accounting.