Unit 35. Auditing

A B

Unit 34. Budgeting

Active vocabulary

budgeting motivate operating plan anticipate primary performance framework fiscal year master budget control device entire business

складання бюджету спонукати виробничий план очікувати, передбачати основний, найважливіший виконання рамки, межа, структура бюджетний рік, фінансовий рік головний бюджет стандартний план діяльності бізнесу контрольний засіб цілий бізнес

The preparation of a budget is an important aspect of a company’s success. The preparation of it helps management to establish short-term and long-term goals and standards for the company, motivates employees to achieve company goals, provides for a systematic review of performance. The success of the budgeting process depends on the cooperation of all employees.

Budget of a business is the financial operating plan for an organization for a fixed period. The budget shows income is anticipated and how the resources will be used during the budget period. It is a forecast used by a business to plan and control.

The primary objective of the budget is to establish a financial framework for the operations of the business. The accounting period for the budget is usually either the calendar year or the fiscal year. The fiscal year is anychosen twelve-month period that does not correspond to the calendar year.

The total of separate budgets from different departments within a company that shows in detail how the entire business operates is called master budget.

As the business year progress, management can use the budget as a control device that permits monitoring of the company’s operations.

Exercise 1. Give the English for:

успіх компанії, встановлювати довгострокові цілі, процес складання бюджету, встановлений строк, прибуток, прогноз, найважливіша задача, бюджетний рік, головний бюджет, використовувати бюджет як контрольний засіб, контролювати роботу компанії, виробничий план, бюджетний період.

Exercise 2. Match words from list A with words from list B that have a similar meaning:

operate sum

goal main

progress expect

achieve definite

systematic reach

fixed regular

anticipate allow

primary objective

permit function

total develop

Exercise 3. Study the following words:

ad budget, annual budget, approved budget, consumer budget, current budget, deficit-free budget, household budget, low budget, master budget, operating budget, overall budget, surplus budget.

Exercise 4. Choose the necessary word and put it in the sentence:

operation, objective, forecast, control device, management, master budget, the fiscal year, budget;

1. a plan of expected income and expenditure for a particular period of time;

2. the total of separate budgets from different departments within a company;

3. a standard plan for the performance of a business by which its operations may be measured and regulated;

4. a statement about what one thinks will happen in the future;

5. related to a 12-month period of business activity;

6. the people who control a company;

7. an aim or target;

8. the main internal workings of business.

Exercise 5. Write the appropriate word or phrase in the following sentences:

total, monitors, accounting, financial year, motivates, budget (2), fiscal year, budgeting, budgets.

1. The financial director is responsible for the firm’s ….

2. … involves setting financial goals and standards for an enterprise.

3. Our company’s … is the calendar year, January 1 December 31.

4. The new channel will be launched with a $3 million promotional ….

5. A desire to go to business school … her to study mathematics hard.

6. She was given a … of $25, 000 to launch the magazine.

7. In the UK, the government’s … runs from 6 April to the following 5 April.

8. Our financial manager will calculate the total profit at the end of the …period.

9. The boss … the quality of her employees’ work.

10. The … of this month’s sales is up 20%.

Exercise 6. Answer the following questions:

1. What is a budget? What does it show?

2. Why is the preparation of a budget an important aspect of a company’s success?

3. What is the primary objective of the budget?

4. What is the customary accounting period for the budget?

5. What can a master budget be used for?

6. What is the master budget?

7. What is the control device?

8. What does the success of the budgeting process depend on?

Exercise 7. Sum up what you remember about:

- a budget and budgeting;

- the fiscal year;

- a master budget.

Active Vocabulary

auditing accounting function review evaluation audit auditor outside (external) audit internal audit accounting department fiscal affairs books the standard operating procedures accounting records	перевірка звітності облікова функція перевірка оцінювання, оцінка, аналіз аудит, перевірка, аудиторська перевірка аудитор, бухгалтер зовнішній аудит внутрішній аудит бухгалтерія фінансові справи бухгалтерські книги стандартні методи роботи бухгалтерські рахунки, документація
accurate adequate accessible CPA (certified public account) paperwork inventory (stock-taking) calculation balance keeping data carrier legal force mean of smth. a mean of checking values according to the auditing control of the enterprise property money measure real price system of the indexes	точний, правильний що відповідає вимогам, відповідний доступний дипломований бухгалтер документування інвентаризація калькуляція, розрахунок балансова звітність носій інформації юридична сила засіб засіб перевірки цінностей і зіставлення з даними бухгалтерського обліку контроль власності підприємства грошовий вимір собівартість система показників

Auditing is an accounting function that involves the review and evaluation of financial records of a company. It is done by auditors. These reviews are called audits.

Outside/external audits are a normal and regular part of business practice. In addition, many corporations maintain a continuous internal audit by their own accounting departments. They review operating procedures and financial records and report to management on the current procedures and financial records and report to management on the current state of the company’s fiscal affairs. The internal auditors make suggestion to management for improvements in the standard operating procedures and check the accounting records.

Independent auditing is done by accounts who are not employees of the organization whose books they examined. The independent accountant is almost always a CPA. Independent accountants review the business’s operating activities they examine financial statements and the accounting records.

Auditing consists of paperwork, inventory, (stock-taking), accounting records, evaluation, calculation, accounts, balance keeping.

Paperwork involves company’s activity information on the different data carrier which enable it legal force.

Inventory is a mean of checking values according to the auditing.

Дата добавления: 2015-05-26