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
operates
which it 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 5.
help? products
2. a couple of 6.
things future
3. 7.
eleven investment
4. s
competition
 4.1 b True or False4.1
b

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
T
classed under machine upgrades. 5. Claude's
reasoning is that the upgrades are really investments
T
in the future.
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. -P-Y-E-R-R-I-I-M-A Initia
L PRELIMINARY l
2. -D-S-I-S-U-C Talk about
S DISCUSS
3. G-D-U-E-P-A-R Improvement
UPGRADE
4. -V-E-I-R-A-Y Range
T VARIETY
5. -E-S-I-A-Z-L-E Big
B SIZEABLE
6. G-U-F-E-R-I Amount of money
FIGURE
7. -C-O-D-I-N-R-E Think about
S CONSIDER
8. -E-B-A-R-S-N-O-L-A Sensible
E 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 aa. The
figures are very
5. These materials are too material for
us to ignore. low
 high b. The figures are very
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
4.3 fair
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

9. a

5. b 4. m 10. j 14.

i 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) ………………………. anything.overstate
- But we’re expected to find these things. That’s what we
are paid to do.

- Hang on a minute. Our job is to (2) ………………………. the

review 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)
…………………………. on the financial information they
read, and rely we are paid to (8) ……………………………..
exactly that (9) check ……………………………….. 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) ……………………………………..,
but it’s always been audit this way and I don’t see how
that can be changed, do you?
 decide which graph or char goes

4.5
best with the description
1. Figures have increased slightly.

2. Figures have increased dramatically.

 decide which graph or char goes

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

3. Figures have increased steadily.

4. This is a significant drop.

 decide which graph or char goes

4.5
best with the description
 decide which graph or char goes

5. This is a gradual drop.

6. The situation is stable.

 decide which graph or char goes

4.5
best with the description
 decide which graph or char goes

7. There have been some fluctuations.

8 The situation was pretty bad, but is

now improving slowly.
 decide which graph or char goes

9. Profits have been falling since the fire.

10. We're hovering at around 3%.

 decide which graph or char goes

4.5
best with the description
 b. Choose the correct answer
6
Have a look at this. Last year was
really good. Profits fell/roserose
dramatically after we launched
Glenogen. And here you can see how
it affected the rest of the market.
CFL remained stable/gradualstable ,
which was a bit of a surprise, but
Junfil was hit quite badly sales
increased/decreaseddecreased to
almost nonexistent. Now look here.
This next graph shows what we think
will happen next year. Good news
again. Everything's going up/downup
''.

PracticeLook 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

PracticeLook 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

PracticeLook 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
 4.6Read and answer
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.
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
 4.7Translation
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.
 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.
 4.7Translation
Trong kế 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