2015-08-21
1198
1. Amounts shown on a letter received directly from an independent bond trustee.
2. Amounts obtained from minutes of board of directors’ meeting.
3. Computation of bond interest and amortization expense when remaining term and status of bond are audited.
4. Amounts shown on canceled cheques.
VIII. Task 1. Number the following words or expressions given in the box with their underlined equivalents in the text and translate the text into Ukrainian.
| accuracy; Annual General Meeting; board of directors; checking; deficiencies; determine; deviations; directives; external; implemented; ratified; shareholders; standard operating procedures; subsidiaries; a synonym; transnational corporations. |
The traditional definition of auditing is a review and an evaluation of financial records by a second set of accountants. An internal audit is a control by a company’s own accountants, checking for completeness, (1) exactness and reliability. Among other things, internal auditors are looking for (2) departures from (3) a firm’s established methods for recording business transactions. In most countries, the law requires all firms to have their accounts audited by an outside company. An (4) independent audit is thus a review of financial statements and accounting records by an accountant not belonging to the firm. The auditors have to (5) judge whether the accounts give what in Britain is known as a “true and fair view” and in the US as a “fair presentation” of the company’s (corporation’s) financial position. Auditors are appointed by a company’s (6) most senior executives and advisors, whose choice has to be (7) approved by the (8) owners of the company’s equity at the (9) company’s yearly assembly. Auditors write an official audit report. They may also address a “management letter” to the directors, outlining (10) inadequacies and recommending improved operating procedures. This leads to the more recent use of the word “audit” as (11) an equivalent term for “control”: (12) multinational companies, for example, might undertake inventory, marketing and technical audits. Auditing in this sense means (13) verifying that general management (14) instructions are being (15) executed in branches, (16) companies which they control, etc.
Task 2. Add appropriate words to these phrases.
1. Auditors ______ companies’ accounts.
2. Accounts have to ______ a fair presentation.
3. Auditors write a ______.
4. It’s the directors who ______ the auditors.
5. Auditors sometimes ______ better accounting procedures.
6. Using external auditors is a ______ requirement.
