UNIT 4: AUDITING

What does an auditor do?

Starter Which ones are normally
done internally or externally?

1. spends time getting to know the

business as well as the environment
and the industry in which it
operates internally

2. analyses the internal business

and financial systems used to make
and record transactions internally
3. gathers evidence on the financial
control systems and the figures in
the financial statements externally

4. gives advice on the business

methods and transactions of the
company internally

5. examines financial statements to

determine whether they conform to
generally accepted accounting
principles externally
6. prepares the financial statements
in accordance with the generally
accepted accounting principles of
the country where the enterprise
operates internally

7. examines the management report

and determines whether it conforms
to the financial statements. externally

8. guarantees the correctness of the

figures presented in the accounts
internally
9. provides consulting services
externally

10. presents a written report to the

management of the company,
describing whether the accounting
records, financial statements and
management reports conform legal
requirements internally

11. maintains confidentiality and

independence externally
4.1 LISTENING
a. Listen and fill in each gap with suitable
words and phrases

1. How can I help? 5. products

2. a couple of things 6. future

3. eleven 7. investments

4. competition
 4.1
4.1 b True b
or False

1. Janet wants to talk to Claude about a report. F

2. Janet thinks that capitalization of costs
T
should be expenses in the P&L
3. Claude agrees with Janet on this point. F
4. Claude thinks capitalization of costs should
be classed under machine upgrades. T
5. Claude's reasoning is that the upgrades are
really investments in the future. T

6. Janet agrees to reconsider her opinion. T

 c. Reorder the letters to make words that have
a similar meaning to the words on the rights

1. L-P-Y-E-R-R-I-I-M-A Initial
PRELIMINARY
2. S-D-S-I-S-U-C Talk about
DISCUSS
3. G-D-U-E-P-A-R Improvement
UPGRADE
4. T-V-E-I-R-A-Y Range
VARIETY
5. B-E-S-I-A-Z-L-E Big
SIZEABLE
6. G-U-F-E-R-I Amount of money
FIGURE
7. S-C-O-D-I-N-R-E Think about
CONSIDER
8. E-E-B-A-R-S-N-O-L-A Sensible
RESONABLE
 4.2 Find the sentences on the right which is closest in
meaning to the sentence on the left

a. We can ignore the

1. We have to keep up competition.
with the competition. bb. We can't ignore the
competition
aa. You can defend your
2. You can't really justify
actions.
spending so much money
on office equipment. b. You can’t defend
your actions.
a. This is a plan to
3. This plan is designed start a business
to keep us in business
bb. This is a plan to get
business
 a. We spent very little
4. This was a sizeable
money on this
investment on out
part. bb. We spent a lot of
money on this

5. These materials are

a
a. The figures are very
high
too material for us to
ignore.
b. The figures are very
low

6. I suggested you aa. Have another think

about it
considered this again.
b. Forget it
7. I’m sure you’ll find a. You think this is fair
it’s reasonable. bb. I think this is fair
4.3 Rearrange the sentences in the
conversations below to make sense

1. d 6. l 11. c

2. k 7. g 12. h

3. e 8. n 13. f

4. m 9. a 14. i

5. b 10. j
Practice conversation

(d) Janet: Hendley and Sanderson. Janet

Hendley speaking.
(k) Claude: Hi Janet, it’s Claude.
(e) Janet: Hi Claude. How is it going?
(m) Claude: Not too bad. Our latest sales figures
are quite good so the boss is happy.
(b) Janet: Good to hear
(l) Claude: Listen, Janet. I’m just calling to find
out if you’ve had a chance to look at those
capitalization of costs yet. You know- our
machine upgrades?
(g) Janet: Yes, yes. Actually, we had a meeting
this morning. I was just about to send you an
email. You’ll be glad to hear that the partners
have agreed with your proposal.
(n) Claude: That’s great. It’ll really help.
a) Janet: Glad to be of assistance
(j) Claude: Erm, One other thing. There are some
other things I’d like to go over with you, but I’d
prefer to do it in person, not over the phone. Could
you come by the office next week sometime?
Tuesday, say?
(c) Janet: Tuesday? No, sorry, I’m afraid I’m busy on
Tuesday. What about Wednesday morning? At,
say, 9 am?
(h) Claude: Yes, that sounds good, Wednesday at
9. So, Janet, I’ll see you then. Have a good
weekend.
(f) Janet: Yes, you too. Bye.
(i) Claude: Bye
 4.4 Listen and fill in the gap

- We don’t (1) ……………………….

overstate anything.
- But we’re expected to find these things. That’s what we are paid to
do.
review
- Hang on a minute. Our job is to (2) ………………………. the
information provided to us by the management of a company.
We have to assume that they are being (3) ………………………. We
are not police officers. honest
- But … legal
- Let me finish. Look. There are (4) ………………………… mechanism
to deal with people who commit (5) …………………………………….fraud
The auditing profession has its own (6) ……………………………. and
investors trust this. It’s tried and tested. regulations
- All I’m saying is that investors have a right to (7)
………………………….
rely on the financial information they read, and
check
we are paid to (8) …………………………….. exactly that (9)
……………………………….. many not be enough. And the trend is
…… Self-regulations
- I agree that it’s a bit strange that we are paid by the same people
who we (10) …………………………………….., audit but it’s always been
this way and I don’t see how that can be changed, do you?
 4.5 decide which graph or char goes
best with the description

1. Figures have increased slightly.

2. Figures have increased dramatically.

Sai giống nhau: 0 điểm
Cán bộ coi thi không
giải thích gì thêm.
Good luck!
 4.5 decide which graph or char goes
best with the description

3. Figures have increased steadily.

4. This is a significant drop.

 4.5 decide which graph or char goes
best with the description

5. This is a gradual drop.

6. The situation is stable.

 4.5 decide which graph or char goes
best with the description

7. There have been some fluctuations.

8 The situation was pretty bad, but is

now improving slowly.
 4.5 decide which graph or char goes
best with the description

9. Profits have been falling since the fire.

10. We're hovering at around 3%.

 b. Choose the correct answer
6
Have a look at this. Last year was really
rose dramatically after we
good. Profits fell/rose
launched Glenogen. And here you can see
how it affected the rest of the market. CFL
stable
remained stable/gradual, which was a bit
of a surprise, but Junfil was hit quite badly -
decreased
sales increased/ decreased to almost non-
existent. Now look here. This next graph
shows what we think will happen next year.
Good news again. Everything's going
up/down''.
up
Practice Look at the following graphs. They
are incomplete. You have one
part, while your partner has the
missing part. Work with partner to
describe the graph.

increase dramatically stable

Practice Look at the following graphs. They
are incomplete. You have one
part, while your partner has the
missing part. Work with partner to
describe the graph.

stable, increase steadily

Practice Look at the following graphs. They
are incomplete. You have one
part, while your partner has the
missing part. Work with partner to
describe the graph.

increase steadily, have some

decrease slightly fluctuation
Practice Look at the following graphs. They
are incomplete. You have one
part, while your partner has the
missing part. Work with partner to
describe the graph.

decrease increase
dramatically, stable steadily
 4.6 Read and answer
We have audited the accompanying
statement of financial position of Megatrap
Corp and consolidated affiliates as of
December 31, 2007 and 2006, and the
statements of earnings, changes in share
owners' equity and cash flows for each of
the years in the three-year period ended
December 31.2007. These consolidated
financial statements are the responsibility of
the Company's management. We have to
express an opinion on these consolidated
financial statements based on our audits.
 4.6 Read and answer
We conducted our audits in accordance with
auditing standards generally accepted in the
United States of America. Under these
standards we have to plan and perform the
audit to obtain reasonable assurance that the
financial statements do not have any material
misstatement. We examined on a test basis the
evidence supporting the figures and disclosures
in the financial statements. We also assessed
the accounting principles used and significant
estimates made by management, and we
evaluated the presentation of the statements.
 4.6 Read and answer

In our opinion, the aforementioned financial

statements present fairly, in all material
respects, the financial position of Megatrap
Corp and consolidated affiliates at December
31.2007 and 2006, and the results of their
operations and their cash flows for each of the
years in the three-year period ended
December 31.2007. in conformity with
accounting principles generally accepted in
the United States of America.
 4.7 Translation

 Kiểm toán được thực hiện để xác định

tính hiệu lực và độ tin cậy của thông tin,
cũng để đánh giá sự kiểm soát nội bộ của
một hệ thống. Mục tiêu của kiểm toán là đưa
ra ý kiến về hệ thống/ tổ chức / ngưởi (...)
được đề cập đến, được đánh giá dựa trên
công việc được thực hiện trên cơ sở thử
nghiệm.
 4.7 Translation

Do những ràng buộc thực tế, kiểm toán cố gắng

cung cấp sự đảm bảo tương đối rằng các báo cáo
không có những sai sót trọng yếu. Do đó, mẫu
thống kê thường được áp dụng trong kiểm toán.
Trong trường hợp của kiểm toán tài chính, một tập
hợp các báo cáo tài chính được cho là đúng sự
thật và công bằng khi họ không mắc những sai sót
trọng yếu, một khái niệm bị ảnh hưởng bởi cả hai
yếu tố định lượng (số) và định tính (chất lượng).
Nhưng gần đây, lập luận rằng kiểm toán vượt qua
tính xác thực và công bằng đang tăng lên.
 4.7 Translation
 Kiểm toán là một phần quan trọng của kế toán. Theo
truyền thống, kiểm toán chủ yếu liên quan đến việc thu
thập thông tin về các hệ thống tài chính và các hồ sơ tài
chính của một công ty hoặc một doanh nghiệp. Tuy
nhiên, kiểm toán gần đây đã bắt đầu bao gồm các lĩnh
vực chủ thể phi tài chính, chẳng hạn như an toàn, an
ninh, hệ thống thông tin, và các vấn đề liên quan đến
môi trường. Với các tổ chức phi lợi nhuận và các cơ
quan chính phủ, nhu cầu đối với hoạt động kiểm toán
ngày càng tăng để kiểm tra thành công của họ trong
việc đáp ứng các mục tiêu nhiệm vụ. Kết quả là, hiện
nay có các chuyên gia kiểm toán là những người
chuyên kiểm tra an ninh, kiểm toán hệ thống thông tin
và kiểm toán môi trường.
 4.7 Translation
 Trongkế toán chi phí, nó là một quá trình xác minh
chi phí sản xuất hoặc việc sản xuất bất kỳ sản phẩm
nào, trên cơ sở tài khoản đo lường việc sử dụng
các vật liệu, lao động hoặc các chi phí khác. Nói
một cách đơn giản hạn, kiểm toán chi phí là sự
kiểm tra các tài khoản chi phí và sổ sách (hồ sơ
minh chứng) có hệ thống và chính xác, và kiểm tra
sự gắn kết với các mục tiêu kế toán chi phí. Theo
Viện Kế toán chi phí và quản lý của Pakistan, kiểm
toán chi phí là "việc kiểm tra sổ sách kế toán chi phí
và xác minh sự việc để xác định chi phí của sản
phẩm phù hợp với các nguyên tắc kế toán chi phí.
 4.7 Translation
Một cuộc kiểm toán phải tuân thủ
các tiêu chuẩn được chấp nhận (những
tiêu chuẩn này) được thành lập bởi cơ
quan quản lý. Những tiêu chuẩn này đảm
bảo rằng bên thứ ba hoặc người sử dụng
độc lập có thể dựa vào ý kiến của kiểm
toán viên về sự minh bạch của các báo
cáo tài chính, hoặc các chủ thể khác mà
kiểm toán viên trình bày quan điểm.
 Audits proves that the financial
statements are free from material
errors.
 There are auditors of financial
security, information system and
environments.
 The third parties can rely on the
auditors’ opinions.
Increase/ go up
The price of food is increasing
Decrease
Go down
Fall