accounting group 4: AUDITING

INTERNAL AUDITING

An internal audit is an examination of the accounts of a company by its own internal auditors or controllers. They accurately assessed the accounts and check for errors. They ensure that the accounts comply with procedures, standards, policies, laws and regulations. Internal auditors also check the control systems of the company related to recording transactions, valuation of assets, etc.

EXTERNAL AUDITING

Public companies must file their financial statements to independent auditors who do not work for the company. The auditors have to give an opinion on whether the transaction in the financial statements present a true picture of the company's financial situation.

The external auditors examine the company's internal systems to see if transactions have been properly recorded. They check whether the assets in the balance of fact exist, and if their assessment is correct. For example, the general find that some of the debtors recorded in the balance are real.

10.1 Match the job titles (1-4) with the descriptions (a-b). Look at A and B opposite to help you.

1. Bookkeepers                    (3) a. Company employees who check the financial statements

2. Accountants                     (4) b. Expert accountants working for independent firm who review

3. Internal Auditors               (2) c. People who prepare financial statements

4. External Auditors              (1) d. People who prepare a company’s day-to-day accounts

10.2 Match the nouns in the box with the verb below to make word combinations. Some words can be used twice. Look at A and B opposite to help you.

Accounts Procedures Opinions

Systems of control               Regulations                Policies

Stock take                                Advice                           laws

                     Accounts                                                               accounts

heck           procedures                                     Examine           Systems of control
                     Systems of control




                              laws
Comply With          regulations                                                   Advice
                                Policies                                  Give             opinions
                                Systems of control

10.3 Complete the table with words from A, B and C opposite and related forms. Put a stress mark in from of the stressed syllable in each word. The first one has been done for you. Then Complete the sentences below with the correct forms of words from the table.

Verb                                            Noun                                                    Adjective

                                                                                                                  accurate

Meet                                             Compliance                                           met