Key terms

Audit – аудит – an independent examination of, and the subsequent expression of opinion on, the financial statements of an organization.

Auditor – аудитор, ревізор – a person or firm appointed to carry out an audit of an organization. In the UK an external auditor must be a registered auditor or a member of a recognized supervisory body and be eligible for appointment under the rules of that body. The five recognized bodies are the Association of Charted Certified Accountants, the Institute of Charted Accountants in England and Wales (ICAEW), the Institute of Charted Accountants in Scotland (ICAS), the Institute of Charted Accountants in Ireland (ICAI) and the Association of Authorized Public Accountants (AAPA).

Attest function – діяльність по підтвердженню – the function performed by a qualified auditor who provides an audit opinion as to the truth and fairness statements of an organization.

Audit evidence – аудиторське свідчення (докази) – the evidence required by an auditor on which to base an audit opinion on the financial statements of the company whose accounts are being audited.

Auditing Standards – принципи аудиту – basic principles and essential procedures with which auditors are required to comply in the conduct of any audit of financial statements.

External audit – зовнішній (незалежний) аудит – an audit of an organization carried out by an auditor who is external to, and independent of, the organization. An example would be a statutory audit carried out on behalf of the shareholders of a limited company.

Internal audit – внутрішній аудит – an audit that an organization carries out on its own behalf, normally to ensure that its own internal controls are operating satisfactory.

Internal Revenue Service (IRS) – внутрішня податкова служба (США) – in the USA, the branch of federal government responsible for collecting most types of taxes. The IRS investigates tax abuses, and makes criminal prosecution for tax fraud through the US tax court.

EXERCISES