- •Accounting principles and concepts
- •Vocabulary list
- •1. Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the following opening phrases:
- •Accountancy in a free-market economy
- •Vocabulary list
- •1. Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the opening phrases given above.
- •Public and private accountants
- •Vocabulary List
- •Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about Use the opening phrases given above.
- •Exercises
- •1. Work on vocabulary and grammar
- •Discussion
- •2. Read the dialogue, sum the its content using the phrases given below and act it out:
- •Accounting methods
- •3. Give extensive answers to these discussion questions:
- •4. Write a short paragraph, explaining:
- •5. Prepare a short talk on the following:
- •6. A company needs the chief accountant, who will:
- •7. Read the text that follows to find the answers to the following questions:
- •Financial statements and their elements
- •8. Read the text quickly and explain what "green accounting" is:
- •Auditing performing an audit
- •Vocabulary list
- •1. Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the opening phrases.
- •Auditing in russia
- •Vocabulary list
- •Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the opening phrases.
- •Exercises
- •1. Work on vocabulary and grammar
- •Auditors’ Report
- •Misuse of Public Funds
- •5. Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences and present your summary in class.
- •Independent Auditors' Report to the Board of Directors and Stockholders of ___ Company
- •6. Read the dialogue, translate the Russian remarks into English and act the dialogue out:
- •Discussion
- •Independent Auditor's Report
- •2. Read the dialogue, sum up its content and act it out:
- •3. Give extensive answers to these discussion questions:
- •4. Write several paragraphs on the following:
- •5. Prepare a short talk on the following:
- •6. Talk to professional auditors to find out what they think about their professional
- •Reading practice
- •Continuing professional education
- •Abbreviations
- •Literature
- •Contents
- •060500 «Бухгалтерский учет, анализ и аудит »
- •683003, Г. Петропавловск-Камчатский, ул. Ключевская, 35
3. Give extensive answers to these discussion questions:
1. What is auditing?
2. When did auditing appear?
3. Do auditors perform a useful service to the community?
4. How do auditors conduct audits?
5. What is the aim of audits?
6. Is it difficult to become a practising auditor? Are professional qualifications high?
7. What is government auditing?
8. Are there any international professional organizations of auditors?
9. What bodies in Russia perform government auditing?
10. Do many young people want to make a career in auditing? Why?
4. Write several paragraphs on the following:
a) Types of audit mentioned in this unit.
b) What are government auditors responsible for?
c) What do professional audit organizations do for auditors?
5. Prepare a short talk on the following:
a) If you have a job with an auditing firm (or want to be an auditor), what sort of
personal characteristics do you think are most important for auditors? Compare them
with the personal features necessary for other financial professions.
b) If you have a job with an auditing firm, say how the Chamber of Auditors pro-
vides you with information about possibilities to upgrade professional skills (courses
being offered by different organizations). Is the information, if any, accurate, timely,
complete and relevant? c) How is the work of auditors monitored?
6. Talk to professional auditors to find out what they think about their professional
organizations in Russia. Consider different aspects of their activities.
UNIT 5
Reading practice
Ex. 1
a) Look through the text below to find the names of bodies responsible for continuing professional education in the UK.
b) Read the text carefully to say what CPE implies.
Continuing professional education
The Audit Registration Committees of the Institute of Chartered Accountants in Britain are extremely interested in and concerned about continuing professional education (CPE). CPE is essential for all principals and employees who deal with audit work. Indeed, it is more than essential, it is compulsory. It is there to ensure that firms maintain their competence to do audit work and maintain the high professional standards expected of firms of chartered accountants.
Principals and employees must keep up-to-date with changes in company law, accounting and auditing standards, etc.
The amount of CPE is not expressed as an absolute total, but a target of 150 points. One point is given for each "unstructured" hour of CPE (e.g. reading) and three points for each "structured" hour (e.g. course attendance). Of the target of 150 at least 60 points should be structured activities. For auditors, half those amounts (i.e. 75 points of total and 30 points of structured education) should be audit-related. Thirty structured CPE points is, for example, 10 hours of course attendance.
The current system of CPE has been in place since 1991. There are no exemptions due to the age of the practitioner or the volume of audit work undertaken.
The ARCs accept that in any particular year the targets may not be met. It is important that auditing firms should take a conscientious approach to CPE. However, the ARCs are becoming increasingly concerned about firms who have done little, if any, CPE.
In the Committees' view there is a wealth of CPE available. Courses are run by the institutes, district societies and commercial training organizations. There should be no excuse for not doing CPE. Firms should be aware that ARCs will take a firm line with firms who do inadequate CPE.
Ex. 2
a) Read through the text for general information.
b) Read the text more carefully and pick out information about the JMU.
The EU 8th Company Law Directive set out the requirements for each member state to have a common minimum regulatory system for auditors of limited companies. The United Kingdom enacted this through the Companies Act 1989 and added a requirement for monitoring. Since 1 October 1991, a firm must be a Registered Auditor to conduct company audit work.
In 1990 the Department of Trade and Industry granted the status of Recognized Supervisory Body to ICAEW, ICAS and ICAI, thus allowing these institutes to register and regulate Registered Auditors.
Specifically, this work is done by Audit Registration Committees which register auditors and then organize monitoring.
Monitoring is conducted on behalf of the Institutes by the Joint Monitoring Unit, which was set up in 1987 to monitor the compliance of firms authorized to conduct investment business and whose role was extended in 1991 to include monitoring the work of Registered Auditors.
The monitoring activities of the JMU involve:
– issuing and reviewing firms' Annual Returns,
– conducting visits to firms,
– reporting the results of visits to the ARCs. Activities of the JMU aim to assess whether or not the firm has complied with Audit Regulations and Standards. The JMU seeks to assist firms by making practical suggestions for improvements of their audit performance.