4.  a review and evaluation of a company’s financial records by employees of the same  company;

5.  an organization’s established methods of carrying out its operating and recording functions;

6.  an analysis, study;

7.  the books, files or computer records where a company’s accounts are kept;

8.  a report showing profit and loss for a business or institution.      

Exercise 4. Put the necessary word into the sentences:

accurate, an evaluation, fiscal affairs, financial records, outside audits, an internal audit, the books, independent accountants, the accounting, audit, the auditors.

1. … were called in to  inspect the accounts.

2. An accountant did a year-end … of our financial records.

3. …firm audited the company every year.

4. … are not employees of the organization whose books they examine.

5. The tax inspector wants to examine … .

6. Many companies employ their own accountants to maintain … .

7. … are a normal and regular part of business practice.

8. Auditors review … and report to the management on the current state of the company’s 9. … in the form of an Auditor’s Report.

10. An account did … of the company’s financial state.

11. The numbers in the report are … .

Exercise 5. Answer the following questions:

1. What is an auditing?

2. Who carries out audits?

3. What is an internal audit?

4. What do internal auditor review?

5. What do the independent auditors review?

6. What is the paperwork?

7. What is the inventory (stock-taking)?

8. What is the accounting records?

9. What is the evaluation?

10. What is the calculation? 

11. What is an accounting records?

12.What is the balance keeping?     

Exercise 6. Indicate true or false statements:

1.  The people who keep the financial records for an organization are the same people who carry out an audit records.

2.  An external auditor is only invited when a company is having financial difficulties.