Apr 14, 2016
- Complete the sentences below. Use the key words if necessary.
- Internal auditing
key words
After bookkeepers complete their accounts, and accountants prepare their financial statements, these are checked by . An is an examination of a company's accounts by its own internal auditors or . They the accuracy or correctness of the accounts, and check for errors. They make sure that the accounts , or follow, established policies, procedures, standards, laws and regulations. The internal auditors also check the company's , related to recording transactions, valuing assets and so on. They check to see that these are adequate or sufficient and, if necessary, changes to existing policies and procedures.
External auditing
key words
Public companies have to their financial statements to — independent auditors who do not work for the company. The auditors have to give an opinion about whether the financial statements represent a true and fair view of the company's financial situation and results.
During the audit, the external auditors examine the company's systems of internal control, to see whether transactions have been correctly. They check whether the assets mentioned on the balance sheet actually exist, and whether their valuation is correct. For example, they usually check that some of the debtors recorded on the balance sheet are genuine. They also check the annual — the count of all the goods held ready for sale. They always look for any unusual items in the company's or statements.
Until recently, the big auditing firms also offered services to the companies whose accounts they audited, giving them advice about business planning, strategy and restructuring. But after a number of big financial scandals, most accounting firms separated their auditing and consulting divisions, because an auditor who is also getting paid to advise a client is no longer totally independent.
Irregularities
key words
If control systems are adequate, accounting principles have been applied correctly, according to external auditors — auditors produce an . Otherwise auditors find . In that case auditors write a to directors or senior managers explaining what needs to be changed. If the company follows the advice given in the management letter auditors produce an audit report. Otherwise auditors produce a , stating that the financial statements do not give an entirely true and fair view and there are some problems.
- Internal auditing
- British English or American English?
- stock take
- British English
- American English
- count of the inventory
- British English
- American English
- stock take
- Match the descriptions with the job titles.
- Company employees who check the financial statements — . . .
- external auditors
- bookkeepers
- accountants
- internal auditors
- Expert accountants working for independent firms who review companies' financial statements and accounting records — . . .
- bookkeepers
- external auditors
- accountants
- internal auditors
- People who prepare financial statements — . . .
- accountants
- internal auditors
- bookkeepers
- external auditors
- People who prepare a company's day-to-day accounts — . . .
- bookkeepers
- internal auditors
- accountants
- external auditors
- Company employees who check the financial statements — . . .
- Match the nouns in the box with the verbs below to make word combinations. Some words can be used twice.
- box
check
check
check
examine
examine
comply with
comply with
comply with
comply with
give
give
- box
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