Auditor

- a person who carries out an audit.

Ex. 1. Translate the following sentences into Russian. Pay special attention to the words in bold. They are your professional vocabulary.

1. The money that a business spends in order to produce goods or services is its costs.

2.Fixed costs do not vary in relation to the output level of goods or services;variable costs do.

3. Direct costs are directly related to the things produced. In manufacturing, for example, direct costs include raw materials and wages and indirect costs may include things like social security charges on top of the wages.

4. Overhead costs or overheads are used to mean different things, but usually cover all the regular non-production costs of running a business, such as salaries and telephone bills, and can be extended, for example, to include the cost of marketing and R&D activities.

5. A company's financial performance for a period is its results, which it reports in the form of aprofit and loss account, indicating whether it has made a profit or a loss.

6. The equivalent document in the US is the income statement. A pre-tax profit or loss is one calculated before tax is taken into account.

7. The accuracy of accounts such as the balance sheet and the profit and loss account is checked and supposedly guaranteed by auditors, outside accountants who specialize in this.

8. When a company's accounts are presented in a way that makes performance look better than it really is, the company may be accused of window dressing orcreative accounting.

9.The bottom line is an informal way of talking about the results of a company: the so-called bottom line of the profit and loss account. The bottom line also means the final result or the most important aspect of something.

10.Assets and liabilities are normally shown on a firm'sbalance sheet: a "photograph" taken, normally once a year, of its financial situation at that time. Firms in a good situation are said to have a strong balance sheet and those that are not, a weak one.

11.Things that are not shown in the balance sheet but in a footnote, for example, are off-balance sheet.

12.A company's balance sheet may include provisions for potential losses, such as bad debts, debts that may never be paid.

13.If it looks almost certain that a debt will not be paid, it is considered a write-off and written off.

14.A company supplying goods or services to another company does not, of course, usually expect to be paid immediately, but after an agreed period. This is trade credit.

15.Amounts that a business is waiting to be paid by its customers areaccounts receivable orreceivables.Customers owing money in this way aredebtors.

16.Money that a business owes to its suppliers areaccounts payable orpayables. Suppliers waiting to be paid are creditors.

17.Thecash flow of a business is the actual movement of money into and out of it, independently of how much it owes and is owed.

18.Cash flow is also used to refer exclusively to cash flowing into a company from sales.

19.When sales reach a level where revenues match costs, a company or product breaks even. 20.This is break even or the break even point, a crucial figure when calculating the return on investment (ROI) for a given business or product.

Ex.2. Match each word in column A with its definition in column B.

A B

1. on account a. unimportant

2. account for b. on one’s behalf

3. by all accounts c serve as or provide an explanation for

4. call to account d. because of

5. of no account e. require an explanation from

6. of some account f. important

7. on one’s account g. in everyone’s opinion

8.on account of h. consider

9.on no account i. under no circumstances

10.take into account. j. use smth fully and profitably

11.put (take) smth to good account k.to be paid for later

Use the words from column A to fill in the blanks

1. She told me not to run … … … my illness.

2. … … … she was a very clever young lady.

3. You can have it … … .

4. If you buy something … …, you take it away with you and pay for it at a later date.

5. How do you … … losing such a large sum of money?

6. In this new job she can … her talents … … … .

7. Their reactions were … … … to me.

8. … … … must strangers be let in.

9. We’ll certainly … your feelings .. … .

10. I was … … … for my conduct by the headmaster.

Ex. 3. Write down a synonym for each of the words on the left. Choose from the ones on the right.

1. responsible a. buy

2. public b. influence

3. earnings c. costs

4. purchase d. information

5. impact e. provide with

6. acquire f. employ

7. expenses g. in charge of

8. supply h. obtain

9. hire i. state-owned

10. evidence j. income

Using these words ask your partner as many questions as you can.

Ex. 4.Join the halves.

1. Before making a loan, potential lenders…

2. Both profit and non-profit organizations…

3. Public accountants are those who…

4. Several accounting organizations have formulated…

5. To do an audit, there must be information in a …

6. It is important to obtain a sufficient…

7. The final stage in the audit process is…

8. Very often the general public…

9. The function of accounting is to provide certain types of…

10. Auditing is the process of recording, classifying and summarizing economic…

a. serve the general public and collect professional fees for their work

b. quality and volume of evidence to satisfy the audit objectives

c. the audit report

d. quantitative information that management can use to make decisions

e. verifiable form and some standards by which the auditor can evaluate the information

f. determine the borrower’s ability to meet scheduled payment.

g. confuses auditing with accounting.

h. codes of ethics that govern the behaviour of their members.

i. events in logical manner for the purpose of providing financial information for decision-making.

j. deal with budgets, payrolls, rent payments, and the like.

Ex.5. Before you begin this exercise, be sure that you know the meaning of the words and word-combinations given below. From the list, choose a word or word combination that fits both grammatically and contextually in each blank. Use each word only once and add noun or verb endings if necessary.

direct costs, fixed costs, income statement, costs, indirect costs, assets and liabilities, earnings, balance sheet, timely information, revenue, entry, depreciation.

1. Substance should triumph are form in situations of window-dressing and off-… financing.

2. It is argued that …should be brought together on the balance sheet if this is necessary to give a true and fair view, whether or not the information involved is specifically required be legislation.

3. Firms locate their production and other operations internationally for reasons that are more complex then the simple minimization of … .

4. Mainly because of higher …, a German manufacturing worker costs almost twice as much per hour as a British one.

5. The … shows the amount that the company earned during the year.

6. After deducting the costs of goods sold and other expenses, the firm had total … before interest and taxes of S 10mln.

7. Lufhansa’s cost problem is illustrated in a comparison with British Airways, when personnel …amount to about 24 per cent of revenues against Lufhansa’s 33 per cent.

8. Any gain in market share fattens profit, because … are high and variable costs are low.

9. There remains, of course, the risk of capital …

10. The purpose of adjusting … is to bring the accounts to their proper balances before the financial statements are prepared.

11. This matching of expenses and … is necessary for the income statement to present an accurate picture of the profitability of a business.

12. Since those interested in the activities of a business need … , financial statements must be prepared periodically.

Ex. 6. Complete the table.

Ex. 7. Study the difference between the following synonyms. Only one meaning of the word is given here. Consult a good dictionary to find the meanings and some more synonyms to the given words. Then use them in the sentences that follow.

Evaluate.If you evaluate something you decide on its significance, value, or quality after carefully studying its good and bad features.

Estimate.If you estimate an amount or quality you calculate it approximately, you make judgment about it based on the available evidence.

Appreciate. If you appreciate something, for example a piece of music or good food, you recognize and understand the good qualities or features that it has and like or admire it because of them.

1. They meet monthly to discuss policy and … the current political situation.

2. They really … the peace and quiet of rural Wales.

3. The hurricane caused damage … at 300 mln pounds.

4. How would you … our chances.

5. He is the kind of individual that’s very hard to … .

6. The lawyers … the property at 90 thousand pounds.

7. The builder … the cost of repairing of roof at 600 pounds.

8. It can explain why actual costs varied from cost … .

9. I would … the size of the garden at 1000 square metres.

Ex. 8. What can we do with information? We can recordit, store, buy, classify… Add as many verbs to this line as you can. Explain the action each verb names and the purpose of this action.

e.g. When we classify the information, we subdivide it into groups according to some criteria to use it purposely in different situations.

LET’S READ AND TALK

T E X T 1

What do you know about accounting? How old is it? What century does it date back? When you hear the word ‘accountant’, what kind of work do you draw in your mind?