ACCOUNTING STANDARDS BUSINESS VOCABULARY IN USE (ADVANCED)

 

BUSINESS VOCABULARY IN USE (ADVANCED) 40. ACCOUNTING STANDARDS

 

A Audits and their transparency Every company appoint auditors, specialist external accountants who audit its accounts. The auditors approve them if they think they give a true and fair view of the company’s situation. If not, they specify the qualifications they have about the accounts. If auditors do this, it certainly gets investors worried! But auditors complain that there may an expectation gap between what they are required by law to do and what clients and investors sometimes expect them to do – auditors say that they should not be expected to pick up every problem. B International standards In the UK, the way accounts are presented is governed by regulators such as the Financial Reporting Council (FRC). In the US, they have the Generally Accepted Accounting Principles (GAAP), promoted by the Financial Accounting Standards Board (FASB). People and institutions invest in companies worldwide. Therefore it’s important for financial reporting to be in a form that means the same thing to people all over the world. That’s why accountants worldwide are moving towards International Financial Reporting Standards (IFRS). EXERCISES 40.1 Look at A and B opposite. Put the paragraphs of this article in the correct order. (The first is a and the last is e, but the other paragraphs are in a different order.) 40.2 Complete the sentences with appropriate form of expressions from the article above. 1. If regulators have no major criticisms to make of a profession, they give it a _______ _______ _______ _______. (part a) 2. Rules that are strict enough to prevent abuses are _______. (b) 3. Another expression for a large bankruptcy is _______ _______. (a)

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