Accounting and Auditing

Vocabulary

accounting – бухгалтерское дело

accounting – бухучет

accounting information – данные учета

accounting principles – принципы бухгалтерского учета

accounting records – материалы бухгалтерского учета

accumulate (v) – аккумулировать, накапливать

analysis – анализ

analyst – аналитик

audit – аудит

audit (v) – подвергать аудиторской проверке

auditing – ревизование, аудит

balance sheet – бухгалтерский баланс

bookkeeping – счетоводство

books – бухгалтерские книги

capital budgeting – ставление смет капитальных вложений

certified public accounting firms – фирмы дипломированных независимых бухгалтеров

classify (v) – классифицировать

column – столбец

concerning – относительно, касательно

conduct affairs (v) – вести дела

customer – покупатель, заказчик

double-entry – двойная бухгалтерия

entity – хозяйствующий субъект

entry – запись, внесение, занесение

fellow citizens – сограждане

financial accounting – финансовый учет

financial analyst – финансовый аналитик

financial position – финансовое положение

financial statements – финансовая отчетность

from this perspective – с этой точки зрения

governmental accounting – учет в государственных учреждениях

governmental institution – государственный институт, государственное учреждение

in return – в ответ

income statement account – счет прибылей и убытков

income statements – декларация о доходах

income tax form – бланк декларации на подоходный налог

income taxation – обложение подоходным налогом

information system – информационная система

internal audit –внутренняя ревизия, внутренний аудитор

labour union – профсоюз

liquidity – ликвидность

managerial accounting – управленческий учет

non-business organizations –некоммерческие организации

operating results – результаты работы

operations – работа, деятельность

pricing – калькуляция цен

private accounting – учет в хозрасчетных организациях

profitably – с выгодой, с прибылью

public accounting – работа независимых бухгалтерских работников в качестве аудиторов

record (v) – записывать, отражать

recording of information – запись информации, отражение информации

record-keeping – ведение учета

records – (бухгалтерская) отчетность

refer to (v) – относиться, касаться

report (v) – давать отчет

set up a business (v) – организовать, основать дело

single-entry book-keeping – простая бухгалтерия

society – общество

state – заявлять, сообщать

stockholder – акционер

summarise – суммировать

supplier – поставщик

trade association – ассоциация производителей и дилеров одной отрасли

transaction – операция

Text 1. Accounting and Auditing

Task 1. Read and translate the text.

Whenever a man set up a business it is because he feels he can produce some useful commodity or service which will be needed by his fellow citizens. In return he expects to be able to earn a profit on his business. To conduct his affairs efficiently and profitably the businessman must have some knowledge of accounting.

Accounting is the language of finance which all business decision-makers must understand. *It is the process of capturing, processing and communicating financial information. In other words, it is an information system that accumulates, records, classifies, summarises and reports commercial transactions. The aim of this process is to show the financial condition of a business entity. This information, in the form of financial statements is then communicated to those who make decisions concerning the operations of an enterprise.

Bookkeeping is a small part of the system and deals with recordkeeping.

Accounting information is used by managers, investors and different groups in society, for example, tax authorities, labour unions, local governments, financial analysts etc. From this perspective, accounting is divided into managerial and financial accounting.

The major branches of accounting are public, private and governmental accounting.

Public accounting refers to the work done by independent Certified Public Accountants (CPA), the corresponding professional British title being Chartered Accountants. They audit the books of companies to ensure that their financial statements and records are properly stated.

Private accounting refers primarily to the private sector of the economy and involves the analysis and recording of financial information by accountants who are employees of the business entity.

Governmental accounting is the accounting function performed for central (federal and state) and local governmental institutions.

Note on the Text

*It is the process of capturing, processing and communicating financial information. – Это процесс получения, переработки и предоставления финансовой информацию

Task 2. Answer the comprehension questions to the text.

1. Why must businessmen have some knowledge of accounting?

2. What is accounting?

3. What does an accounting information system show?

4. Who needs financial information?

5. What are the major branches of accounting?

Task 3. Find in the text English equivalents for the following Russian words and phrases:

- производить полезные товары или услуги;

- быть в состоянии заработать прибыль;

- чтобы вести дела эффективно и с прибылью;

- лица, принимающие решения;

- накапливать;

- отражать;

- классифицировать;

- суммировать и давать отчетность по коммерческим операциям;

- финансовое состояние хозяйствующего субъекта;

- финансовая отчетность;

- налоговые власти;

- профсоюзы;

- финансовые аналитики;

- бухучет подразделяется на …;

- основные направления бухучета…;

- подвергать аудиторской проверке бухгалтерские книги;

- гарантировать, что финансовая отчетность составлена должным образом;

- анализ и отражение финансовой информации.

Task 4. Match the verbs in A with the nouns in B.

A B

to set up a commodity

to produce affairs

to earn information

to conduct the books

to communicate a function

to audit profit

to perform a business

Task 5. Read the text and translate it into Russian. Say what you know about the accounting profession in Great Britain.

The accounting profession in Great Britain is rich in tradition. Great Britain is the founding place of modern financial reporting and independent audit.

The profession comprises private and public accountants. Private accountants are employed by business firms. They prepare budgets and performance reports which are used by managers to make managerial decisions.

Many accountants work for government and non-for-profit organizations.

Public accountants are independent professionals who provide services for a fee. They offer a number of services to their clients. One of the main ones is auditing. Accountants examine financial statements and offer their opinion on their accuracy and reliability.

Words and word combinations you may need

the founding place of – место, где были основаны…

financial reporting – финансовая отчетность

for a fee – за плату, на платной основе

offer an opinion – дать аудиторское заключение

accuracy – точность

reliability – надежность

Task 6. a) Read the interview. B) Say:

- how one can become an auditor;

- whether Russian follows international practice in auditing.

Foreigner: As far as I know, you didn’t use to have auditing firms before your economic reforms. But now auditing is widely practiced here, isn’t it?

Russian: That’s right. Our auditing profession is developing very fast.

F.: Are there any professional organizations of auditors in Russia now?

R.: Yes, there are. They help auditors in their professional activity. Now auditors are trained in institutes of higher education.

F.: Can graduates perform audits?

R.: No, they can’t. To carry out audits one must have a licence.

F.: Do your auditors tale exams for that?

R.: Like in your country they do. Requirements for people who take such exams are very strict. Then auditors must have several years of approved experience and constantly upgrade their skills.

F.: I see. You follow international practice. What services do your auditors offer?

R.: As a rule, they audit financial statements and provide opinion on their accuracy and reliability. Besides, they provide consultancy on financial management, taxation and designing of accounting systems.

F.: These are most common things for auditors in market economy.

R.: That’s true. Russia has been recognized as market economy lately.

Words and word combinations you may need

auditing firm – аудиторская фирма

perform an audit – проводить аудиторскую проверку

carry out an audit – проводить аудиторскую проверку

licence – лицензия

upgrade skills – повышать квалификацию

consultancy services – консультационные услуги

financial management – финансовый менеджмент

designing of accounting systems – разработка систем бухучета

Task 7. Say/write what you know about the accounting profession in Russia.

Task 8. Translate the text into Russian and analyze grammatical and lexical problems of the translation with your teacher.