Project X

Schedule for Phase 1: January 10 - March 31

	Projected	Situation at March 24
Production/ materials costs	$ 125,000	$130,000 spent, no further expenses expected
Travel/ accommodation costs	$ 10,000	no travelling has been necessary
Number of man hours required	300	400, projected costs based on three people working, fourth person needed to help with technical problems
Phase 1 completion deadline	March 31	probable completion May 31; unexpected technical problems

Student B

PRICE ***$19,000 or more **$17,000419,000 * less than $17,000	PAYMENT *** on singing contract**30-day credit * 60-day credit		DELIVERY DATE ***in the three months **in two months * by end of next month
TRAINING ***one-day training in Budapest by your staff **one-day training in Oslo by your staff *two-day training in Oslo by your staff		DELIVERY COSTS **to be paid by them *to be paid by you
MAINTENANCE ***$2,000 or more **$1,00042,000 *less than $ 1,000		WARRANTY ***12 months **18 months *24 months or more

WRITING

1. The following charts show a breakdown of the costs of production in three similar companies which build 16 to 18 metre racing yachts. You work for the British company and have been asked by the Cost Accountant, Gladys Garwood, to write a brief memorandum for her setting out your findings. She has given you a few brief notes indicating the sort of information she is looking for.

Unit 7 auditing getting started

1. Discuss the following questions with your partners:

● What is the function of auditors?

● What requirements do these functions impose on the people professionally involved in auditing?

2. Read the passage below to check your findings.

The financial statements on which public accountants express opinions serve as a basis for securities trading and credit extensions. The reports issued by governmental auditors are often a basis for proposed legislation. In today's society, it is imperative that many types of organizations be subjected to an audit. Management, stockholders, credit institutions, regulatory agencies, and legislative and executive branches of federal, state, and local governments require such audits.

The modern auditor must be a talented individual who has the ability to make vital decisions on many important issues, and the courage and depth of character to stand by personal convictions. The auditing function offers individuals an opportunity that is rare in other fields of endeavor − that is, the opportunity, on almost a daily basis, to be responsible for making decisions and judgments as what is right and what is wrong, and to stand by those decisions and judgments regardless of the pressures that may be brought to bear. This opportunity has attracted many outstanding individuals to the field of auditing and has helped to retain them.

USEFUL VOCABULARY

assertion n	утверждение; отстаивание (прав, претензий)
attestation n	функция выражения мнения аудиторов по поводу правдивости финансовой отчетности
auditing	проведение аудиторских проверок; аудит
compliance audit	аудиторская проверка на соответствие установленным законам
error n	ошибка (при ведении бухгалтерского учета)
error of omission	ошибка котировки
error of principle	ошибка принципа
compensating error	компенсирующая ошибка
transposition error	ошибка перестановки
external auditing	внешний аудит – аудит, независимый от владельцев и администрации компании
financial statement audit	аудиторская проверка финансовой/бухгалтерской отчетности
government auditors	представители местных, правительственных и федеральных ветвей власти, производящие аудит бухгалтерского учета и отчетности в различных организациях
internal auditing	внутренний аудит
irregularity n	беспорядок; незаконность; неправильность; нерегулярность
operational auditing	аудиторская проверка учетно-счетных операций и ведения хозяйственной деятельности
statutory audit	установленная законом аудиторская проверка
compliance test	тест на соответствие (при проведении аудиторской проверки
sustantive test
Memorandum of Association	учредительный договор о создании акционерной компании
teeming and lading	неверная запись дебиторской задолженности
assignment n	назначение, акт о передаче имущества или права
corroborate	подтверждать
consecutive numbers	последовательные цифры
Financial Reporting Council (FRC)	Совет по составлению финанcовой отчетности
Generally Accepted Accounting Principles (GAAP)	Общепринятые бухгалтерские принципы (США)
Financial Accounting Standards Board (FASB)	Бюро стандартов финансового учета (США)
International Financial Reporting Standards (IFRS)	Международные стандарты составления финансовой отчетности (UK)
International Organization of Securities Commissions (IOSCO)	Международная организация по ценным бумагам