Public Accounting

Date: 2015-10-07; view: 458.

Ex.10.Read and translate the text B

VI. Reading

V. Oral Practice

Ex.9.Retell the text A using this plan:

1) What is accounting?

2) Two major categories of accounting.

3) What is managerial accounting concerned with?

4) How do managerial accountants affect decision making?

5) Who uses the information of financial accounting?

6) What questions do financial accounting reports answer?

7) What is the annual report?

1. Many countries use the services of Certified Public Accountants to protect the public by ensuring a high quality of professional service.

2. The work of public accountants is varied, complex and interesting. Most accounting firms organize themselves into several principal areas of specialization, which may include 1)auditing, 2)tax services, 3)management advisory services and 4)small business services.

3. The most important and distinctive function of a certified accountant is auditing (also called the attest function), which is the examination and testing of financial statements. All public corporations and many companies that apply for sizable loans must have their financial statements and records audited by an independent public accountant.

4. An audits purpose is to give the auditor's professional opinion as to whether the company's financial reports fairly present its financial position and operating results. Auditors check and test the accounting records if necessary to satisfy themselves about the quality of the financial statements. They must prove cash balance, confirm physical inventories and verify the amounts owed by customers. Auditors must also decide if there are adequate controls and if the company's records are kept in accordance with accepted accounting practices.

5. In the area of tax services public accountants assist businesses and individuals in preparing tax returns and complying with tax laws. They also help plan business decisions to reduce taxes in future. Tax accounting work calls for much knowledge and skill regardless of the size of a business. Few business decisions are without tax effects.

6. A growing and important pail of most public accounting firms' practice is management advisory services or consulting. With their deep knowledge of a business's operations auditors can make important suggestions for improvements.

7. Many small businesses look to their CPA for an advice on operating their businesses and keeping their accounting records. CPA might provide such services as setting up or revising an accounting system, compiling monthly financial statements, preparing a budget of cash needs over the next year and assisting the client in obtaining the bank loan.

Ex.11.Look through the text and find the terms which mean the following:

1) the art of analyzing the financial position and operating results of a business;

2) an officer who is in charge of the accounts;

3) an examination and testing of financial statements;

4) certified public accountant;

5) management consulting services;

6) a charge imposed by government authority upon property individuals or transactions to raise money for public purposes;

7) to act in accordance with wishes, requests, commands, requirements or conditions;

8) the classifying, recording, and analyzing in a systematic manner the cost of materials, labor, and overhead charges (expenses) involved in a company's production or its rendering of a service;