Vocabulary

Auditing аудит

Auditor аудитор

To examine проверять, проводить ревизию

Accounting records документы учета

Financial statements финансовая отчетность

To offer an opinion сделать заключение

Accuracy точность

Reliability достоверность, надежность

Audit аудит, аудиторская проверка, ревизия

To build up наращивать, накапливать

Account(s) audit аудит счетов, ревизия счетов

Auditor’s opinion заключение аудитора, аудиторское заключение

Credibility вероятность, правдоподобие, достоверность

Supervisory board наблюдательный совет

Government agency ведомство, правительственная организация

Indepth audit report детальный аудиторский отчет

Audit process процесс проведения аудиторской проверки

Audit procedures методика проведения ревизии/аудиторской проверки

Manifold разнообразный, разносторонний

Judgment суждение, оценка

Planning stage стадия (этап) планирования (аудиторской проверки)

Testing stage стадия (этап) проверки

Audited company проверяемая компания

Preliminary analytical review предварительный анализ финансово-хозяйственной деятельности

Assumption допущение, предпосылка,

предположение

Complete figures полные данные

Accurate figures точные данные

…should focus on any misstatement следует обращать внимание на любое искажение

...whether it is intentional независимо от того, является ли оно

or unintentional преднамеренным или непреднамеренным

…that caused the auditor to qualify которые заставили аудитора внести

hisopinion оговорки в свое заключение (выразить особое мнение)

To record регистрировать, записывать, отражать

Proper period надлежащий период

Legal position юридическое положение, юридический статус

Misstatement сообщение неверных (неправильных) сведений, искажение сведений

(Un)intentional непреднамеренный

To take the responsibility брать (на себя) ответственность

To complete the audit завершить аудиторскую проверку

To seek evidence искать доказательства

Ultimate objective конечная цель

Evaluation оценка

Substantive test(ing) независимая проверка

Tests in totals проверка итоговых чисел

To form a conclusion сделать вывод

Materiality «существенность» (искажения)

Audit risk риск некачественного контроля

Critical (зд.) решающий

Magnitude величина, размер

Omission пропуск

Inherent risk (зд.) присущий (виду деятельности) риск

Control risk риск контроля

Detection risk риск (не)обнаружения

Approval of the financial statement подтверждение финансовой отчетности

Deviation отклонение

Unqualified opinion безусловное мнение (оценка, заключение)

To qualify the opinion дать аудиторское заключение с оговорками

Integrity добросовестность, профессиональная честность

To certify выдавать свидетельство

To audit проводить аудиторскую проверку

Accompanying прилагаемый

Balance sheet балансовый отчет

The related statement of income соответствующий отчет о прибылях и убытках

To conduct an audit проводить аудиторскую проверку

Generally accepted auditing standards общепринятые стандарты аудита

Accordingly соответственно

In the circumstances в данных обстоятельствах

To comply with regulations соответствовать требованиям, правилам и т.д.

In agreement with в соответствии с

Underlying лежащий в основе

In compliance with в соответствии с

Relevant уместный, относящийся к делу

Exercise 2. Answer the following questions.

1. What is auditing?

2. What audits are practiced nowadays?

3. What does the auditor’s opinion help establish?

4. How is an audit planned?

5. What do auditors normally start with?

6. What do auditors direct their attention to when they analyse financial statements?

7. What responsibilities do managers (directors) undertake with regard to the audit?

8. What are the responsibilities of auditors?

9. Do auditors study and evaluate the accounting system and the internal accounting control during the audit? Do they rely on internal controls?

10. What are the most critical elements in the auditor’s judgment?

11. Do all audits end up in the approval of the financial statements? Why do auditors sometimes disclaim or qualify their opinions?

12. Who has the right to act as an auditor?

13. What audit was conducted by the auditors whose opinion is stated in the sample?

14. What were the auditors responsible for?

15. What opinion was expressed?

Exercise 3. Fill in the gaps with the words and expressions from the text:

1. Auditing is a process in which an independent accountant-auditor examines a firm’s ______________________________________________________ and offers an opinion on their _______________________________________________.

2. There are different types of audits, for example, _______________________

___________________________________________________________, etc.

3. The accountancy profession has built up a significant amount of expertise in performing ___________________________________________________.

4. It should be stressed that auditors do not monitor, they _________________, and the audit process and audit procedures are ______________________________.

5. Accounts audits were established as an instrument to protect ________________________, the users of accounts, since the auditor’s opinion helps establish _______________________________________________________.

6. The auditor should focus on any _________________________________ whether it is intentional or unintentional.

7. Although the financial statements are the ultimate objectives of an audit, normally such audits cannot be completed without ____________________________ and assessment of the internal accounting controls.

8. Defining the audit strategy the auditor has to decide ___________________

______________________________or to resort to substantive testing applying analytical review procedures, such as _______________________, comparison with budgets or even statistical analysis of _____________________.

9. “Audit risk” (including three different components-inherent risk, control risk, detection risk) is ______________________________________________________ that is materially misstated.

10. Any deviation from the ____________________________________ opinion should be explained in the auditor’s __________________, including the uncertainty or the disagreement that caused the auditor to qualify his opinion.

Exercise 4. Translate the words and expressions below from Russian into English and make up your own sentences with them.

1. проверять, проводить ревизию

_____________________________________________________________________________

2. документы учета

_____________________________________________________________________________

3. финансовая отчетность

_____________________________________________________________________________

4. сделать заключение (по результатам аудиторской проверки)

_____________________________________________________________________________

5. достоверность, надежность

_____________________________________________________________________________

6. наращивать, накапливать

_____________________________________________________________________________

7. аудит счетов, ревизия счетов

_____________________________________________________________________________

8. аудиторское заключение

_____________________________________________________________________________

9. наблюдательный совет

_____________________________________________________________________________

10. детальный аудиторский отчет

_____________________________________________________________________________

11. процесс проведения аудиторской проверки

_____________________________________________________________________________

12. стадия (этап) планирования (аудиторской проверки)

_____________________________________________________________________________

13. проверяемая компания

_____________________________________________________________________________

14. предварительный анализ финансово-хозяйственной деятельности

_____________________________________________________________________________

15. полные данные

_____________________________________________________________________________

16. точные данные

_____________________________________________________________________________

17. надлежащий период

_____________________________________________________________________________

18. регистрировать, записывать, отражать

_____________________________________________________________________________

19. юридическое положение, юридический статус

_____________________________________________________________________________

20. искажение сведений

_____________________________________________________________________________

Exercise 5. Translate the words and expressions below from English into Russian and make up your own sentences with them.

1. unintentional

_____________________________________________________________________________

2. relevant

_____________________________________________________________________________

3. in compliance with

_____________________________________________________________________________

4. underlying

_____________________________________________________________________________

5. to comply with regulations

_____________________________________________________________________________

6. in the circumstances

_____________________________________________________________________________

7. accordingly

_____________________________________________________________________________

8. generally accepted auditing standards

_____________________________________________________________________________

9. to conduct an audit

_____________________________________________________________________________

10. the related statement of income

_____________________________________________________________________________

11. balance sheet

_____________________________________________________________________________

12. to certify

_____________________________________________________________________________

13. integrity

_____________________________________________________________________________

14. to qualify the opinion

_____________________________________________________________________________

15. unqualified opinion

_____________________________________________________________________________

16. deviation

_____________________________________________________________________________

17. approval of the financial statement

_____________________________________________________________________________

18. detection risk

_____________________________________________________________________________

19. control risk

_____________________________________________________________________________

20. inherent risk

_____________________________________________________________________________

Exercise 6. Find in the text English equivalents for the following Russian phrases from the text (of ex.1) :

1. проверять (подвергать ревизии) учетную документацию

_____________________________________________________________________________

2. давать заключение в отношении точности и достоверности финансовой отчетности

_____________________________________________________________________________

3. ревизия правильности начисления подоходного налога

_____________________________________________________________________________

4. аудит оптимального использования денежных средств

_____________________________________________________________________________

5. аудит мероприятий по защите окружающей среды

_____________________________________________________________________________

6. ревизия правильности действий руководства

_____________________________________________________________________________

7. проверка эффективности финансовой деятельности руководства

_____________________________________________________________________________

8. учетные работники накопили значительный опыт в …

_____________________________________________________________________________

9. аудит счетов является инструментом защиты интересов пользователей финансовой отчетности

_____________________________________________________________________________

10. заключение аудитора делает финансовую отчетность надежной

_____________________________________________________________________________

11. деловая среда, в которой работает проверяемая компания

_____________________________________________________________________________

12. аудиторы обращают свое внимание на правильность предположений руководства

_____________________________________________________________________________

13. преднамеренное или непреднамеренное искажение данных

_____________________________________________________________________________

14. брать на себя ответственность за …

_____________________________________________________________________________

15. процедура проведения аудиторской проверки

_____________________________________________________________________________

16. оценка системы внутреннего контроля

_____________________________________________________________________________

17. прибегать к независимым проверкам

_____________________________________________________________________________

18. анализ финансово-хозяйственной деятельности

_____________________________________________________________________________

19. подтвердить финансовую отчетность

_____________________________________________________________________________

20. балансовый отчет соответствует российскому законодательству

_____________________________________________________________________________

Exercise 7. Single out the main points of the text (ex.1) . Use the following opening phrases:

1. The text looks at (the problem of …) …

_____________________________________________________________________

2. The text deals with the issue of …

_____________________________________________________________________

3. It is clear from the text that …

_____________________________________________________________________

4. Among other things the text raises the issue of …

_____________________________________________________________________

5. The problem of … is of great importance.

_____________________________________________________________________

6. One of the main points to be singled out is …

_____________________________________________________________________

7. Great importance is also attached to …

_____________________________________________________________________

8. In this connection, I’d like to say …

_____________________________________________________________________

9. It further says that …

_____________________________________________________________________

10. I find the question of … very important because …

_____________________________________________________________________

11. We shouldn’t forget that …

_____________________________________________________________________

12. I think that … should be mentioned here as a very important mechanism of …

_____________________________________________________________________

Exercise 8. Match the verbs from (a) with the nouns from (b) below:

а) to offer b) internal controls

to direct substantive testing

to focus on a conclusion

to take the interests

to complete the opinion

to seek an audit

to rely on regulations

to resort to an opinion

to form attention

to protect misstatement

to qualify the responsibility

to conduct the audit

to comply with evidence

Exercise 9. Think of and write the verbs that are most commonly used with:

1. opinion

________________________________________________________________________

2. audit

________________________________________________________________________

3. auditor’s report

_______________________________________________________________________

4. internal controls

_______________________________________________________________________

5. substantive testing

_______________________________________________________________________

6. payments

_______________________________________________________________________

7. evidence

_______________________________________________________________________

8. information

_______________________________________________________________________

9. responsibility

_______________________________________________________________________

10. procedure

_______________________________________________________________________

11. accounting system

_______________________________________________________________________

12. audit strategy

_______________________________________________________________________

13. conclusion

_______________________________________________________________________

Exercise 10. Read the articles supplying the prepositions where necessary (in the text a) or putting the verbs in the correct form (in the text b). Then study the vocabulary given after them.

a)

Auditor’s Report

We have examined the books, accounts and vouchers relating … the six months ended 30^th September … (year) which were presented … us. We have made extensive enquiries … the system of internal check … force and are satisfied that it is working efficiently. Particular attention was paid to the methods in force for the authorization of accounts for payment and the handling … cash. The cash balances … the 30^th September … (year) were counted and found to be in accordance … the cashier’s books. All bank payments have been verified with the bank statements and certificates of the balances on the accounts obtained … the bankers.

We have checked all cash and bank payments… the receipts and have to report that a number of small payments are unsupported … vouchers. It has been possible, however, to obtain other evidence to show that these disbursements were properly made. The cash books have been cast and all postings … the various ledgers checked … detail.

All invoices… respect of goods purchased and expenses incurred have been examined with the appropriate analysis of books, the totals of which have been checked. Several minor errors were detected which have now been rectified. The postings to the Creditors’ Ledgers have been test-checked, being far too numerous to do in detail. The balances … the individual Creditors’ accounts have been compared with special audit statements obtained from them and found to be … order. Our instructions did not require us to examine the Sales Ledgers and Day Books: we therefore report that in such work as we have performed we found no evidence of, or opportunity … defalcation or fraud.

b)

Misuse of Public Funds

It is a universally accepted truth in Russia that the heads of many public funds habitually (to divert) trillions of rubles away from the stated purpose into lucrative deals for personal gain.

Over the first 10 months of this year, the Accounts Chamber, a watchdog of the State Duma, (to reveal) that nearly 1.8 trillion rubles, were not used for their designated purposes.

The auditors (to find) that nearly every fund was not using its money as it was supposed to. For instance, the Moscow branch of Russia’s Pension Fund (to buy) a building for about 2 billion rubles, (to spend) 11.5 billion rubles on its renovation and repair, and (to pay) another 6 billion rubles to an intermediary for “selecting the building, preparing the necessary documents, and obtaining the consent of the parties concerned.” The Pension Fund (to misuse) more than 660 billion rubles despite the fact that people in some regions were left without pensions for up to three months.

Many public funds (to set) up their own banks with charter capital running into hundreds of billions of rubles.

In spite of the obvious violations of regulations, all these operations cannot be put down as embezzlement without court rulings, and the violators are unlikely to be sued.

Misappropriations from extrabudgetary funds (to encourage) not only by people with a particular mentality and by a lack of adequate actions on the part of law-enforcement agencies, but also by the very system through which financial resources (to flow) from top to bottom. State extrabudgetary funds (to act) as an intermediary that collects payments and remits them to the recipients. Thus, they (to tempt) to “invest” the money in lucrative fast-yielding deals.

There would probably have been fewer cases of embezzlement and misuse of assets if public funds had initially been granted legal rights to earn money by, for example, transacting in securities and foreign-exchange valuables, and making short-term deposits in banks. So far the funds only (to have) a list of operations barred to them.