What is auditing

Auditing is a very ancient activity. "Audit" is a Latin word that means "he hears". In ancient times auditing was the process when the owner heard the account given by his steward of the use of the owner's resource s. The origin of stewardship goes far back into the middle Ages. Kings or lord s who were away at war or for other purposes usually left their estates in the hands of a steward who kept an account of the payments and receipt s of the estate. As a rule, the steward used to render an account to the owner, who might be illiterate and had to hear it ("audit" - "he hears").

In the early days of auditing the prime qualification for the position of an auditor was reputation. A man known for his i ntegrity and independence of mind took this honor ed position, the matter of technical ability was secondary. In those days, the function of auditor was never confuse d with that of accountant. However, as accounting gradually became more complex, auditors became increasingly dependent on the expertise provide d by accountants. Eventually, the audit function itself became total ly dominate d by the accountancy profession. By the 19th century, many owners of business es appointed one of their members to be an auditor of the financial state ments prepared by the director s of a company. This was partly because the process of auditing had become more complicated as business itself became more complicated.

The rules for auditing are usually set out in auditing standard s.

The qualification s that auditors must have are set: membership of a CPA body in the US, or in the UK membership of one of four of the bodies of the consultative committee of the accountancy bodies. Auditing is carried out by individual s or by firm s which vary greatly in size; some firms have hundreds of partner s and thousands of staff.

A. Выберите правильный вариант.

1.Auditing means

a. he hears b. he owns c. he owes

2.____________ kept an account of the payments and receipts of the estate.

a. a king b. a lord c. a steward

3. In the early days of auditing the prime qualification for the position of an auditor was___________________________.

a. education b. reputation c. money

4.______________, many owners of businesses appointed one of their members to be an auditor of the financial statements prepared by the directors of a company.

a. By the 19th century b. By the 18th century c. By the 17th century

5. Nowadays an audit is a process carried out by____________ auditors

a.qualified b. qualification c. qualify

6. Auditors _______________ on if the financial statements of a company are fair.

a. prepare b. make a presentation c. give an opinion

7. ______________ checks the physical existence, valuates important assets and examines the systems of internal control.

a. a tax report b. an audit report c. a financial report

8. _________________ set out the rules for auditing.

a. accounting standards b. technical standards c. auditing standards

9. In the US auditors must be a membership of a ______________body

a. SPA b. QPA c. CPA

10.Individuals or firms ________________________ auditing

a. develop b. carry out c. prepare standards of

Date: 2015-09-02; view: 362; Нарушение авторских прав