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Федеральное государственное образовательное бюджетное

учреждение высшего образования


«ФИНАНСОВЫЙ УНИВЕРСИТЕТ ПРИ ПРАВИТЕЛЬСТВЕ
РОССИЙСКОЙ ФЕДЕРАЦИИ»
(Финансовый университет)
Кафедра «Иностранные языки-2»

Дубинина Г.А.
Драчинская И.Ф.
Кондрахина Н.Г.
Петрова О.Н.

Методические рекомендации
для преподавателей
к учебнику
АНГЛИЙСКИЙ ЯЗЫК:
ЭКОНОМИКА И ФИНАНСЫ
MAJORS
Для направлений:
38.03.01- «Экономика», профили «Финансы и кредит», «Анализ и
управление рисками», «Бухгалтерский учет, анализ и аудит», «Налоги и
налогообложение»
38.03.02 «Менеджмент», профили «Антикризисное управление»,
«Инвестиционный менеджмент», «Корпоративное управление»,
«Управление проектами», «Финансовый менеджмент»
38.03.03 «Управление персоналом»
(программа подготовки бакалавров)

Рекомендовано
Методическим советом Кредитно-экономического» факультета
(протокол № 30 от 15 декабря 2015 г.)
Одобрено кафедрой «Иностранные языки -2»
(протокол № 4 от 04 декабря 2015 г.)

Москва 2015
УДК 81 (07) Д29
ББК 81.2 . Англ.
Д 29

Рецензенты: Паштова Л. Г., доктор экономических наук, профессор кафедры


«Корпоративные финансы» (Финансовый университет)
Звягинцева Е.П., к. пед. н., доцент (Финансовый университет)

Д 29 «Методические рекомендации для преподавателей к учебнику


«Английский язык: Экономика и финансы. Majors» - М.: Финансовый
университет, 2015. – … с.

Дубинина Г.А., Драчинская И.Ф., Кондрахина, Н.Г., Петрова О.Н.

Методические рекомендации для преподавателей к учебнику «Majors»,


четвертой части серии учебников для студентов финансово-экономического
профиля, предназначены в помощь преподавателям при работе по
тематике учебника: банковское дело, финансы предприятий, учреждений и
организаций, налоговая система государства, аудит. Все разделы снабжены
ключами к упражнениям и рекомендациями по использованию
предлагаемых образовательных технологий.

Учебное издание

Дубинина Галина Алексеевна


Драчинская Ирина Фёдоровна
Кондрахина Наталья Геннадиевна
Петрова Оксана Николаевна

«Методические рекомендации для преподавателей


к учебнику
«Английский язык: Экономика и финансы. Majors»

 Коллектив авторов, 2015


 Финуниверситет, 2015
Введение
"Английский язык: экономика и финансы» - это серия учебников,
целью которых является углубление и расширение языковых и
экстралингвистических знаний студентов в пределах тематики,
предусмотренной базовой частью дисциплины «Иностранный язык» для
бакалавров финансово-экономического профиля. Материалы учебника
«Majors», четвертой части серии, тематически связаны с общими
представлениями об экономической деятельности и охватывают
следующие темы: банковское дело, финансы предприятий, учреждений и
организаций, налоговая система государства, аудит.
Методические рекомендации для преподавателя к учебнику
«Majors» содержат три раздела:
I. Общие рекомендации по работе с учебником
II. Методические рекомендации по использованию каждого вида заданий
III. Ключи к упражнениям
Авторы выражают глубокую признательность преподавателям
Финансового университета, принимавшим участие в апробации учебника в
рамках семинара Института повышения квалификации преподавателей
«Методология и методика преподавания учебных дисциплин на
иностранных языках», выпускникам Финансового университета,
преподавателям кафедры «Иностранные языки-2» за помощь в отборе
профессионально значимых материалов.

I. Общие рекомендации по работе с учебником


Содержание учебника “Majors” интегрировано в профильный контекст
обучения и предоставляет возможность использования таких активных
методов обучения, как кейс - анализ; мультимедийные презентации с
использованием программы Power Point; ролевые игры и Интернет-поиск.
Учебник содержит три раздела (Unit), которые имеют единую структуру:
 Lead-in – вступительная часть.
 Language Input – словарь урока с примерами и переводом.
 Background Information – профессионально ориентированный текст,
дающий представление о проблематике одного из сегментов
финансово-экономической сферы и упражнения, способствующие точ-
ному пониманию текста и оснащенные речевыми формулами.
 Speaking & Writing – упражнения, направленные на совершенст-
вование умения строить устную и письменную речь на английском

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языке по тематике раздела, включая мультимедийную презентацию и
Интернет-поиск.
 Dialogue – профессионально ориентированные диалоги по тематике
раздела, предназначенные для развития навыков ведения диалога и
расширения терминологической базы.
 Reading for Cross-cultural Associations – тексты о межкультурных
особенностях взаимодействия в финансово-экономической сфере.
 Case-study & Role-play – кейс-анализ и ролевая игра по тематике,
соответствующей учебно-познавательной и социально-культурной
направленности раздела.
 Grammar Back up – грамматические упражнения и комментарий
(условные предложения) на лексической основе материалов учебника.
 Topics for the Power Point presentations. Тематика презентаций.

Работа над структурными частями, направленными на развитие устной


подготовленной и неподготовленной речи проходит в хронологическом
порядке, кроме раздела Grammar Back up. Изучение грамматики
рекомендуется разделить на несколько частей и равномерно дополнять
ими выполнение заданий частей Practice, Dialogue, Reading for Cross-
cultural Associations, Case-study & Role-play.

II. Методические рекомендации по использованию


каждого вида заданий
 Lead-in
Раздел 1.1 LEAD IN – вступительная часть каждого раздела
предназначена для подготовки к иноязычной деятельности в
определенном контексте.
 Language Input – словарь урока с примерами и переводом.
Раздел 1.2 (2.2, 3.2) LANGUAGE INPUT - это справочные материалы,
предназначенные для самостоятельной внеаудиторной работы. Студенты
работают с этими материалами автономно.
DEVELOPING VOCABULARY
Работу над разделом начинаем с работы над частотными ошибками в
произношении – дома нужно выписать транскрипцию к упр. 1.2.1 (2.2.1 /
3.2.1) и научиться правильно читать эти слова и словосочетания.
Преподаватель может их семантизировать, но на этом этапе не
рекомендуется переводить и проговаривать все словосочетания, - это

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будет сделано в последующих упражнениях. Таким же образом
выполняется упражнение Matching 1.2.2 (2.2.2 / 3.2.2). Цель данного
упражнения – научить студентов работать со словарем и пользоваться
транскрипцией, а также подготовиться к работе над текстом 1.1 (2.1, 3.1)
раздела.
Произношение – это своего рода «визитная карточка» говорящего,
первое, на что мы обращаем внимание при общении с человеком – это
чистота и правильность его речи. Правильность английского
произношения влияет на смысл высказывания (short – shirt, work – walk).
Долгота и краткость гласных (ship – sheep), звонкость и оглушение
согласных (send – sent), ударение (a present- to present) имеют
смыслоразличительное значение.
Умение работать с транскрипцией крайне важно. Не следует
записывать английское произношение русскими буквами, это может
привести к ошибке. Истинно английского произношения, используя
русское написание, не передать. В он-лайн словарях имеется звуковой
образец произношения, который в этом случае будет полезен.
Студенту, начинающему работать с транскрипцией, необходимо знать
следующее:
1. Транскрипция пишется в двух квадратных скобках (bet [bet] — пари)
или в двух прямых косых (bet /bet/ — пари).
2. В английском языке существует два типа ударения. Первое – это
основное ударение (main stress), в отличие от русского языка ставится
не над ударным слогом, а перед ним сверху. Второе ударение –
дополнительное (secondary stress) ставится перед ударным слогом
внизу: hamburger [‘hæmb,ɜːgə] гамбургер
3. Буквы в английском алфавите имеют свои названия, но в словах они,
чаще всего, звучат по-другому. Например, буква C в алфавите звучит
как /si/, а в словах чаще передает звук /k/.
4. Некоторые транскрипционные знаки напоминают английские буквы, в
основном, это согласные:
[f] fine /ф/, с легким прикусом нижней губы
[v] very /в/, с легким прикусом нижней губы
[s] sofa /с/, произнесенное не кончиком языка, а «спинкой»
[z] zone /з/, произнесенное не кончиком языка, а «спинкой»
[h] hall слабый /х/, легкий выдох
[p] park /п/, с резким выдохом (придыханием)
[b] ball /б/
[t] tea /т/, кончик языка — на бугорках за передними верхними зубами, с
резким выдохом (придыханием)
[d] door /д/, кончик языка — на бугорках за передними верхними зубами
[k] kite /к/, с резким выдохом (придыханием)
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[g] grass /г/
[m] may /м/
[n] nose /н/
[l] lip /л/
[r] rose /р/, язык за бугорками за передними верхними зубами
[w] what, губы «в трубочке», резко разжать, как /уа/, только единым звуком
5. Некоторые знаки не имеют аналогов в русском языке:
[θ] thin /с/, кончик языка между зубами, «шипение змеи» на выдохе, не
озвученное голосом
[ð] that /з/, кончик языка между зубами, «шипение змеи» на выдохе,
озвученное голосом
[ŋ] long /н/, «спинка языка смыкается с верхним нёбом»
6. Некоторые знаки по звучанию схожи с русскими:
[ʃ] ship средний между /ш/ и /щ/
[ʒ] pleasure мягкий /ж/, почти /жь/
[tʃ] chin /ч/
[dʒ] jam мягкий /дж/, почти /джь/, как единый звук
[j] yacht слабый /й/
7. Гласные звуки делятся на короткие и длинные (указывает знак (:) за
звуком):
[i:] eat долгий /и/
[i] it краткий и, средний между /и/ и /ы/
[e] net краткий /е/ как в слове «лето»
[æ] cap средний между /э/ и /а/
[a:] art глубокий /а/, как говорим врачу, показывая горло
[ɔ] fox краткий /о/
[ʌ] cut краткий /а/, как в слове «табак»
[u] book краткий /у/, губы не в «трубочке», а слегка округлены
[u:] school /у:/, губы не в «трубочке», а слегка округлены
[ə:] bird /ё/, но не /йо/, а единый звук, немного похожий на /Ио/
[ə] sister слабый /э/
[ɔ:] call долгий /о/
8. В транскрипции английского языка существуют так называемые
двугласные - дифтонги. Они состоят из двух звуков, но произносятся
как одно целое, второй звук произносится слабее:
[ei] take /эи/ (не эй)
[ai] like /аи/ (не ай)
[au] house /ау/
[ɔi] boy /ои/ (не ой)
[ou] no /оу/
[iə] ear /иа/
[ɛə] hair /эа/
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[uə] poor /уэ/

 Background Information – профессионально ориентированный текст,


дающий представление о проблематике одного из сегментов
финансово-экономической сферы и упражнения, способствующие точ-
ному пониманию текста и оснащенные речевыми формулами.
Чтение, перевод текста и ответы на вопросы к тексту из упражнения
1.4.1 (2.4.1, 3.4.1) предназначены для самостоятельной внеаудиторной
работы и составляют домашнее задание.
Приемы работы над текстом, обучение чтению могут по выбору
преподавателя различаться в группах разного уровня языковой подготовки.
Репертуар приемов можно классифицировать по следующим факторам:
По целевой направленности деятельности
1.ознакомительное
2.просмотровое
3.изучающее
4.поисковое
По форме
1.про себя
2.индивидуальное
3.хоровое
4.громкое
По способу раскрытия содержания
1.аналитическое
2.синтетическое
3.переводное
4.беспереводное
По месту чтения
1.домашнее
2.классное
По характеру организации деятельности
1.подготовленное
2.неподготовленное
3.тренировочное
4.контрольное
Для групп с хорошей подготовкой работу над текстом можно начинать
с поискового чтения (Найдите в тексте ответ на вопрос из 1.4.1). На
втором занятии проводится более детальная проверка понимания текста
базе упражнений 1.4.2 – True & False statements. Студент должен дать

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аргументированный комментарий не менее, чем из 4-х фраз, показывая
глубокое понимание текста и умение аргументированно отстаивать свою
позицию. (Это правильно потому, что …/ это неправильно потому, что …).
Преподавателю рекомендуется сочетать различные приемы обучения
чтению: чтение с общим охватом содержания (просмотровое,
ознакомительное); чтение с целью детального понимания прочитанного
(изучающее); чтение с целью извлечения конкретной информации
(поисковое).

• Speaking & Writing (1.5, 2.5, 3.5) - это упражнения, направленные на


совершенствование умения строить устную и письменную речь на
английском языке по тематике раздела, включая мультимедийную
презентацию и Интернет-поиск. Упражнения сгруппированы по
следующим параметрам:
- Language focus – лексические упражнения, связанные с
особенностями использования словосочетаний и особенностями
словообразования в английском языке;
- Skills focus - лексические упражнения, связанные с правильным
употреблением активного словаря в определенном контексте;
- Presenting information – обучение навыкам дискурса как в
подготовленной, так и неподготовленной речи.

 Dialogue – профессионально ориентированные диалоги по тематике


раздела, предназначенные для развития навыков ведения диалога и
расширения терминологической базы.

Диалог содержит задание лексической направленности (перевести на


английский язык выражение, данное в скобках; перефразировать
выделенное выражение). После его выполнения вне аудитории студенты
под руководством преподавателя разбирают его содержание, выделяя
главную и второстепенную информацию. Неподготовленную
монологическую речь затем рекомендуется дополнить подготовкой
собственного диалога / полилога с обязательным использованием
функциональной лексики (в учебном диалоге 1.6, 2.6, 3.6 дана курсивом).
Содержание собственного диалога может основываться на материалах,
полученным путем Интернет-поиска, или представлять собственные
мнения коммуникантов по тематике учебного диалога.

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 Reading for Cross-cultural Associations – тексты о межкультурных
особенностях взаимодействия в финансово-экономической сфере.

Учебные тексты для кросс-культурного сравнения не адаптированы и


предназначены для самостоятельной работы студентов под руководством
преподавателя. Тексты содержат редко употребляемые слова и
словосочетания, в то числе идиоматические. Подготовка к обсуждению
текста в аудитории требует от студентов способности собрать
информацию по частям из разных источников, обобщить и кратко
изложить ее. Более того, на материале раздела студенты получают
социокультурные знания о лингвистических маркерах социальных
отношений и межкультурных различиях, учатся избегать связанного с этим
недопонимания и конфликтных ситуаций. Преподавателю рекомендуется
разделить студентов на «группы жужжания» (buzz groups) или
дискуссионные группы, каждая из которых проведет кросс-культурное
обсуждение определенных аспектов предложенного текста. Тему
обсуждения предлагает преподаватель. Как правило, аппарат раздела
снабжен перечнем тем для обсуждения; либо словосочетаниями, которые
дополняют информацию основного текста; либо таблицей, позволяющей
систематизировать и затем обсудить представленную информацию.

 Case-study & Role-play – комплексный анализ конкретных деловых


ситуаций и ролевая игра на их основе по тематике,
соответствующей учебно-познавательной и социально-культурной
направленности раздела.

 Кейс анализ: студенты начинают работу над кейсом с


самостоятельного ознакомительного чтения установочного текста. Текст
сопровождается заданиями, имеющими иноязычную речевую и
профессиональную направленность. На аудиторном этапе работы над
текстом кейса происходит совместное первичное обсуждение ситуации
под руководством преподавателя, и студенты получают задание
продолжить самостоятельное изучение кейса и собрать дополнительную
информацию, в том числе с использованием Интернет-ресурсов.
Повторный, более глубокий анализ кейса проходит на втором занятии с
использованием технологии мультимедийной презентации. Презентация
выполняет функцию «наглядного пособия» для публичного выступления,
аргументированного высказывания или дискуссии. Изучение каждого
кейса завершается принятием решения или выработкой рекомендаций по
разрешению обсуждаемой ситуации. Решение представляется
индивидуально или группой студентов письменно в виде протокола,
служебной записки или отчета.

8
 Ролевая игра органично дополняет кейс анализ, так как дает
возможность студентам не только имитировать общение в предлагаемой
ситуации, но и привнести в действия персонажей свою точку зрения,
развернуть дискуссию, моделировать реальные ситуации. Именно в
ролевой игре формируются и вырабатываются навыки установления
контакта; правильного восприятия и оценки партнера как личности;
выработки стратегии и тактики общения. Но каковой бы ни была фабула
ролевой игры, для студентов важна готовность к кооперации с коллегами,
работе в коллективе, что невозможно без развития социо-культурной
компетенции обучаемых, необходимости соблюдать нормы поведения и
этикет. Ролевая игра - это очень важное дополнение к кейс-анализу, так
как именно в ролевой игре формируются и вырабатываются навыки
установления контакта; правильного восприятия и оценки партнера как
личности; выработки стратегии и тактики общения.
На этапе подготовки к ролевой игре преподаватель создает группы из
действующих лиц во главе с модератором. Модератор создает сценарий
ролевой игры в общих чертах (навигацию), не прописывая роли подробно с
репликами, а лишь определяя порядок реплицирования,1 модератор может
играть одну из ролей. При оценке ролевой игры работа модератора
оценивается дополнительными баллами. Модератор также может
подготовить проект решения, которое будет окончательно выработано в
ходе ролевой игры.
Последовательность подготовки студента к ролевой игре:
Этап 1. Изучить описанную ситуацию.
Этап 2. Выбрать роль
Этап 3. Подготовиться к реплицированию в рамках сценария ролевой
игры, используя активную лексику по теме, обязательную
функциональную лексику из текста ролевой игры, формулы
речевого этикета. Power Point презентация, как добавочный
аргумент в дискуссии, или способ представления решения,
оценивается дополнительными баллами.
Этап 4. Завершающий. Предложить решение проблемы/вывод и
представить его в письменном виде, либо написать протокол,
отчет, докладную или служебную записку, либо статью.

 Grammar Back up – грамматические упражнения и комментарий


(условные предложения) на лексической основе материалов
учебника.

1
Свойство, заключающееся в том, что говорение определенного собеседника чередуется с говорением
другого или других: 1) либо в порядке смены; 2) либо в порядке прерывания в эмоциональном диалоге .
(Словарь лингвистических терминов Т.В. Жеребило)

9
Грамматический комментарий предназначен для самостоятельной
внеаудиторной работы. Студенты работают с этими материалами
автономно. Ознакомившись с ними вне аудитории, студенты
самостоятельно выполняют сопровождающие их упражнения. На занятии
при проверке упражнений преподаватель просит объяснить выполнение
задания, если это необходимо и разъясняет сложные явления.
Грамматические упражнения в процессе иноязычной подготовки в
нелингвистическом вузе носят функциональный характер, не выходит за
рамки школьной программы. Основная задача учебника – научить
студентов подъязыку специальности и профессиональной коммуникации,
при этом лексико-грамматическая корректность должна быть достаточной
для достижения этой цели.

В конце каждого раздела учебника есть TOPICS FOR THE POWER


POINT PRESENTATIONS. В начале работы над разделом рекомендуется
предложить студентам этот перечень с указанием дат, когда
преподавателю необходима данная презентация для дополнения к работе
над содержанием текста, ролевой игрой, диалогом, кейс-анализом, кросс-
культурной информацией или аудиоматериалом. Студенты выбирают тему
презентации из этого списка по желанию, более того, эти темы, как
правило, представлены на устном экзамене в разделе «Ситуативные
задания по пройденной тематике». На занятиях прослушиваются 2-3
презентации согласно календарному плану. Максимальная оценка 10
баллов.
См. прилагаемую схему 1.
Схема 1
ФИО Следование Структура Использование Манера Содержание Уровень Структура Итоговый
студента регламенту презентации функциональной презентации владения и балл
лексики и и языком содержание
активного организация слайдов
словаря обратной
связи с
аудиторией
Макс.
балл 1 1 1 1 2 2 2 10
1 Иванов 9.00-
И.А. 9.07

Длительность презентации не более 5-7 минут.


Количество слайдов – 7-10:
1. Титул
10
2. План
3. Основное содержание (3-5 слайдов)
4. Заключение
5. Контактная информация и / или ссылка на источники
Слайды содержат лишь схематическое изложение информации -
наиболее важные пункты / ключевые моменты презентации, связные
предложения допустимы только в исключительных случаях (цитирование).
На слайде помещается та информация, которую лектор написал бы на
доске, или демонстрировал бы с помощью наглядных пособий (таблиц,
диаграмм, и т.п.).
Не использовать анимацию и др. средства, способные отвлечь
аудиторию от содержания презентации.
Картинки и иллюстрации используются только, если они поясняются
лектором в ходе презентации.
Шрифт не менее 18 пунктов, желательно Times New Roman или Arial.
Для главной и второстепенной информации – шрифт разного размера.
Цвет шрифта и фона должен быть контрастным, используйте цвет для
выделения информации с осторожностью.
Предпочтителен светлый фон.
Графики и схемы должны содержать заголовки.
Слайды не должны содержать лексико-грамматических ошибок.
Пунктуация на слайдах сведена к минимуму.
Заключительный слайд содержит контактную информацию / либо
ссылки на источники (2-3 самых важных). Не рекомендуются разговорные
формулы («Спасибо!», «Благодарю за внимание» и пр.)

III. Ключи к упражнениям


1 BANKING AND LENDING

1.2.1. Consult a dictionary, write out the transcription and practise the
pronunciation of the following words:

advisory services əd'vaɪz(ə)rɪ] ['sɜːvɪs]


business environment ['bɪznɪs] [ɪn'vaɪər(ə)nmənt ], [en-]
conglomerates [kən'glɔm(ə)rəts]
electronic credit transfer [ˌelek'trɔnɪk] ['kredɪt] [træn(t)s'fɜː ],
[trɑːn-]
financial intermediaries [faɪ'nænʃ(ə)l] [ˌɪntə'miːdɪərɪz]
government license ['gʌv(ə)nmənt] ['laɪs(ə)n(t)s]
government’s budget deficit ['gʌv(ə)nmənts] ['bʌʤɪt] ['defɪsɪt]

11
hire purchase ['haɪə] ['pɜːʧəs]
instalment credit [ɪn'stɔːlmənt] ['kredɪt]
monetary policy ['mʌnɪt(ə)rɪ] ['pɔləsɪ]
monitory letter ['mɔnɪt(ə)rɪ] ['letə]
mortgage business ['mɔːgɪʤ] ['bɪznɪs]
national deregulation ['næʃ(ə)n(ə)l] [ˌdiːregju'leɪʃ(ə)n]
open market operation occurs ['əup(ə)n] ['mɑːkɪt] [ˌɔp(ə)'reɪʃ(ə)n]
[ə'kɜːz]
public utilities ['pʌblɪk] [juː'tɪllətɪz]
regular equal monthly amounts ['regjələ] ['iːkwəl] ['mʌnθlɪ] [ə'maunts]
required reserve ratio [rɪ'kwaɪəd] [rɪ'zɜːv] ['reɪʃɪəu]
repo operation ['riːpəʊ] [ˌɔp(ə)'reɪʃ(ə)n]
responsibility for the control [rɪˌspɔn(t)sə'bɪlətɪ] [fɔː] / [fə] [ðiː] / [ðɪ] /
[ðə] [kən'trəul]
simultaneous withdrawal of all [ˌsɪm(ə)l'teɪnɪəs] [wɪð'drɔː(ə)l] [ɔv] / [əv]
their deposits [ɔːl] [ðɛə] [dɪ'pɔzɪt]
threat of financial panics [θret] [ɔv] / [əv] [faɪ'nænʃ(ə)l] ['pænɪks]
to act as a lender of last resort [tuː] / [tu] / [tə] [ækt] [æz] / [əz ] [ə]
['lendə] [ɔv] / [əv] [lɑːst] [rɪ'zɔːt]
to be determined by its objectives [tuː] / [tu] / [tə] [biː] [dɪ'tɜːmɪnd] [baɪ]
[ɪts] [əb'ʤektɪvz ], [ɔb-]
to be multiplied several times [tuː] / [tu] / [tə] [biː] ['mʌltɪplaɪd]
['sev(ə)r(ə)l] [taɪmz]
to comprise registered banks [tuː] / [tu] / [tə] [kəm'praɪz] ['reʤɪstəd]
[bæŋks]
to form a subsidiary [tuː] / [tu] / [tə] [fɔːm] [ə] [səb'sɪdɪ(ə)rɪ]
to issue currency [tuː] / [tu] / [tə] ['ɪʃuː ] / ['ɪsjuː] ['kʌr(ə)nsɪ
] / ['kɜːr(ə)nsɪ]
to seize opportunities [tuː] / [tu] / [tə] [siːz] [ˌɔpə'tjuːnətɪz]
to supervise and regulate [tuː] / [tu] / [tə] ['s(j)uːpəvaɪz] [ænd] /
[ənd] ['regjəleɪt]
to underwrite securities [tuː] / [tu] / [tə] [ˌʌnd(ə)r'aɪt]
[sɪ'kjuərətɪz]
transferring funds [træn(t)s'fɜː ] / [trɑːn-] [fʌndz]
volatile ['vɔlətaɪl]
Austria ['ɔstrɪə]
European Bank for [ˌjuərə'piːən ] / [ˌjɔːr-][bæŋk] [fɔː] / [fə]
Reconstruction and Development [ˌriːk(ə)n'strʌkʃ(ə)n] [ænd] / [ənd]
[dɪ'veləpmənt]
European Central Bank [ˌjuərə'piːən ] / [ˌjɔːr-] ['sentr(ə)l] [bæŋk]
Eurozone ['jʊərə(ʊ)zəʊn]
12
Germany ['ʤɜːmənɪ]
Japan [ʤə'pæn]
National Girobank [,næʃənl'dʒaɪrəubæŋk]
Switzerland ['swɪts(ə)lənd]

1.2.2 Match the English word combinations in the left-hand column with
the Russian equivalents in the right-hand column:
1. to provide financial and banking A предоставлять финансовые и
services банковские услуги
2. to implement the government's B осуществлять денежную политику
monetary policy государства
3. regulators C регулирующие органы, органы
надзора
4. to affect the money supply D контролировать денежную массу
5. to impose reserve requirements E устанавливать резервные
требования
6. discount rate F учетная ставка
7. to restore their reserve ratio G восстановить резервный
коэффициент
8. to alter the monetary base H менять денежную (монетарную)
базу
9. a simultaneous withdrawal of all I одновременное снятие денег со
deposits всех депозитов
10. to act as a lender of last resort J выступать кредитором последней
инстанции
11. to act as intermediaries K быть посредником
12. share and bond dealing L операции с акциями и облигациями
13. hire purchase or instalment credit M покупка в рассрочку
14. to form a subsidiary N создать дочернюю компанию
15. to raise funds for something O мобилизовать средства для чего-
либо
16. underwriting securities P гарантия размещения ценных
бумаг
17. the base rate Q базовая ставка
18. to issue government bonds R выпускать правительственные
облигации
19. deregulation S уменьшение государственного
регулирования
20. mortgage business T ипотечное кредитование
21. issuing and underwriting U эмиссия и размещение ценных

13
securities бумаг

1.3 READING
REVIEWING THE CONCEPT
1.4.1 Say whether these statements are true (T) or false (F), and if
they are false say why.
e.g. I reckon it is true that … . / I am inclined to think it is false that ...
because ... .

T 1. Objectives determine the way in which a bank functions.


F 2. The central bank acting as a banker to commercial banks
deregulates the financial sector.
F 3. The central banks seek to effect money supply with the
help of reserve requirements, the discount rate and
issuing currency.
T 4. Customers must have a guarantee that banks can get
money any time they need it.
F 5. Giro is a system designed for clearing cheques.
T 6. A banking system in which banks provide a wide variety
of financial services, including both commercial and
investment services is known as universal banking.
F 7. American investment banks offer loans and advisory
services.

1.4.3 Scan the text and find the information to complete the
following lists:
1. The main functions of the Central Bank are: it …
A acts as banker to the commercial banks
B supervises and regulates not only the banking system but also the
financial sector
C fixes the minimum interest rate and influences exchange rates
D collects financial data and publishes statistics
E provides financial information for consumers

14
2. The Central Bank uses three main instruments to control the money
supply in the system. They are …
A reserve requirements
B the discount rate
C open market operations

3. Commercial banks provide such services as: they…


A make loans
B provide deposits
C provide deposits against which cheques can be written
D pay money according to customers’ instructions
E offer investment advice
F offer foreign exchange facilities

4. The main services offered by both wholesale and retail banking


are …
A deposits
B payments
C credits

5. Some European banks are called universal because they combine



A deposit and loan banking with share and bond dealing, investment
advice
B Yet even universal banks usually form a subsidiary, known as a
finance house, to lend money – at several per cent over the base
lending rate – for hire purchase or instalment credit, that is, loans to
consumers that are repaid in regular, equal monthly amounts.
C __________________________________________________
D __________________________________________________
E __________________________________________________

6. Merchant banks specialize in …


A raising funds for industry on the various financial markets
B financing international trade
C issuing and underwriting securities
15
D dealing with takeovers and mergers
E issuing government bonds
F and so on

7. “Financial supermarkets” are conglomerates which combine the


services previously offered by …
A stockbrokers
B banks
C insurance companies

1.4.4 Scan the text again and find the English equivalents for the
following:

1. рыночные возможности market opportunities


2. кредитор последней инстанции a lender of last resort
3. процентная ставка interest rate
4. финансовые посредники financial intermediaries
5. привлечение депозитов to provide deposits
6. правительственные учреждения government agencies
7. дефицит бюджета budget deficit

8. инвестиционные консультации investment advice


9. восстановить резервный to restore one’s reserve ratio
коэффициент
10. дочерние предприятия subsidiaries
11. ценные бумаги securities
12. строгое разграничение между a strict separation between

13. недостаточные резервы для insufficient reserves to meet a


покрытия массового изъятия simultaneous withdrawal of
депозитов deposits
14. мобилизовать денежные средства to raise funds
15. угроза финансовой паники the threat of financial panics
16. эмиссия и размещение ценных issuing and underwriting
бумаг securities
17. обслуживание слияний и dealing with mergers and
поглощений takeovers
16
18. банки разоряются banks go bust
19. предоставлять кредиты to provide loans
20. создание финансовых the creation of financial
супермаркетов supermarkets
21. страховые компании insurance companies
22. как предполагает их название as their name suggests

1.5 SPEAKING & WRITING

Language focus
Word-Combination Building
1.5.1 All the words below can be combined with bank or banking
in a two-word partnership, e.g. central bank. Add the word
bank or banking1 either before or after each of the words
below:

1. ...... bank account............. 10. ...... merchant bank ...........


2. ...... bank balance............ 11. ...... bank note ...................
3. ...... central bank ............ 12. ...... off-shore banking ......
4. ........ bank clerk............... 13. ...... retail banking ............
5. ....... commercial bank ...... 14. ..... bank robbery..............
6. ....... bank deposit .............. 15. ..... savings bank .................
7. ..... bank (banking) holiday ….. 16. ..... bank statement ..............
8. ....... investment bank ........ 17. ... banking system ...............
9. ....... bank manager ............. 18. .... wholesale banking .........

Skills focus

1.5.2 a. Read the extract and fill in prepositions wherever


necessary.
b. Discuss the text.

1
Banking holiday - официальный выходной день [помимо воскресений, в английских учреждениях
имеется восемь выходных дней в году: Рождество, день Нового года, Великая пятница, первый
понедельник после Пасхи, последний понедельник мая или первый понедельник июня, последний
понедельник августа или первый понедельник сентября, День рождественских подарков и с 1978 г.
Первое мая; в эти дни отдыхали банковские служащие]

17
c. Give the text the appropriate heading.
_________________________________
In the USA, Federal Reserve, the federal banking authority,
performs the functions of a central bank and is used to implement the
country's monetary policy, providing a national system of reserve cash
available to banks. The Federal Reserve System consists of twelve
Federal Reserve Districts, each having a Federal Reserve Bank. These
are controlled by Washington, DC, by the Federal Reserve Board
consisting of governors appointed by the U.S. president with Senate
approval.
The Federal Reserve System (also known as the Federal
Reserve, and informally as the Fed) is the central banking system of
the United States. It was created in 1913 by the enactment of the
Federal Reserve Act, largely as a response to a series of financial
panics or bank runs, particularly a severe panic of 1907. Over time,
the roles and responsibilities of the Federal Reserve System have
expanded and its structure has evolved. Events such as the Great
Depression were some of the major factors leading to changes in / of
the system. Its duties today, according to official Federal Reserve
documentation, fall into four general areas.

1.5.3 a. Complete the text by using the following word


combinations from the box and fill in the grid.
b. Discuss the text.
A interest rates G wages
B circulation H inter-bank market
C money supply I open market operations
D credit J reserve requirements
E inflation K output
F reserves L government bonds
Following the monetarist argument that the average level of prices
and …(1) wages … is determined by the amount of money in
circulation, many central banks now set …(2) money supply …
targets. By increasing or decreasing the money supply, the central
bank indirectly influences interest rates, demand, …(3) output …,
growth, unemployment and prices. The central bank can reduce the

18
…(4) reserves … available to commercial banks by changing the
…(5) reserve requirements … . This reduces the amount of money
that banks can create and makes money scarce. Alternatively, the
central bank can engage in what are called …(6) open market
operations …, which involve selling short-term …(7) government
bonds … (such as three-month Treasury bills) to the commercial
banks, or buying them back.
When money is tight, …(8) interest rates … rise, because
commercial banks have to borrow at a higher rate on the …(9) inter-
bank market …, …(10) credit … falls because people and
businesses buy less, as they have less money. Consequently,
unemployment rises, because companies are producing and selling
less, and so require less labour, but …(11) inflation … falls, because
there is less money in …(12) circulation … .

1 2 3 4 5 6 7 8 9 10 11 12
G C K F J I L A H D E B

1.5.4 a. Read the text, ignoring the missing parts.


The central bank of an economy …(1) will set interest rate at
which … it is willing to lend to commercial banks on a short-term
basis. The name of this interest rate differs across central banks, but
we follow the practice of the European Central Bank and …(2) refer
to it as the refinancing rate ... .
The way in which the central bank lends to the banking sector is
through a special form of open-market operations. Although outright
open-market operations have been traditionally used by central banks
…(3) to regulate the money supply …, central banks nowadays
often use a slightly more sophisticated form of open-market
operations that involves buying bonds and other assets from banks and
at the same time …(4) agreeing to sell them back later … . When it
does this, the central bank has effectively made a loan and taken the
bonds or other assets …(5) as collateral or security on the loan ... .
The central bank will have a list of eligible assets that it will accept as

19
collateral – ‘safe’ assets such as government bonds or assets issued by
large corporations, …(6) on which the risk of default by the issuer
… is negligible. The interest rate that the central bank charges on the
loan is the refinancing rate. Because the central bank has bought the
assets but the seller has agreed to buy them back later …(7) at an
agreed price …, this kind of open-market operations is often called a
repurchase agreement or ‘repo’ for short.

b. Look at the missing parts A-H and fit them in the gaps. There is
one extra you don’t need.
A to regulate the money supply
B to have a reserve ratio
C as collateral or security on the loan
D will set interest rate at which
E at an agreed price
F agreeing to sell them back later
G refer to it as the refinancing rate
H on which the risk of default by the issuer

1 2 3 4 5 6 7
D G A F C H E

c. Find words or word combinations in the text that mean the


following.

outright open- the outright sale or purchase of non-monetary assets


market to or from the banking sector by the central bank
operations without a corresponding agreement to reverse the
transaction at a later date
a repurchase the sale of a non-monetary assets together with an
agreement or agreement to repurchase it at a set price at a

20
‘repo’ specified future date
the the interest rate at which the European Central Bank
refinancing lends on a short-term basis to the UK banking sector
rate
collateral or informal term for security put up against the loan
security
a bond a contract to repay money borrowed, and as such
represents debt
the money total amount of money available at short notice in a
supply given country
the central bank that carries out government economic policy
bank and functions as the government’s banker
an interest interest charged to the borrower or paid to an
rate investor, usually expressed as a percentage per
annum
a commercial bank that concentrates on cash deposit and transfer
bank services to the general public
government fixed-interest security issued by a government
bonds agency such as the Treasury
assets something that belongs to an individual or company
and which has a value, e.g. building, plant, stock

1.5.5 Substitute the words and word combinations given in bold


type by synonyms or synonymous expressions from the
active.
1. There are two reasons for using a bank account (deposit). The first
is the convenience safety provided by a current (checking)
account. The second is that small and perhaps regular surpluses are

21
available to be saved, and for this purpose a bank provides deposit
accounts.
2. The bank on which the cheque is drawn out (written out / made
out) is called a drawee.
3. Banks make their profits by lending the money (crediting) which
customers place (deposit) with them to others who need it for
personal or business reasons.
4. If a loan (credit) is granted (extended) it will be a fixed sum
immediately available for a fixed period of time.
5. What is the main function of the savings and loan association
(building societies)? It is an institution which accepts savings
deposits and makes loans (provides loans) mainly for the
purchase and repair of homes.
6. Money on a deposit account is not instantly available but can be
taken back (withdrawn) after giving the bank seven days' notice.
7. There are a lot of organizations which act as financial agents
(intermediaries) between wholesale companies and a client.
3. He is to pay his housing mortgage by regular part payments
(installments).
4. Companies generally use a bank to guarantee (underwrite) the
purchase of the security issue at an agreed price on a certain day,
although it hopes to sell it to the public.
Presenting information
1.5.6
A. Search for keywords Federal Reserve System, the European
Central Bank, refinancing rate, outright open-market
operations, money supply in the Internet to find further
information about one of these items. Report on your findings
in a presentation using the following points and helpful
phrases from the chart.
B. Comment on the presentation given by your colleague. Make
use of the following points and helpful phrases. Do your best

22
so as not to offend the speaker and to show the positive sides
of the presentation rather than criticize it.

1.6 DIALOGUES
DIALOGUE 1
Read and translate the following dialogue:
Reserve Requirements and the Discount Rate
Task 1. Report the dialogue. Use the following reporting verbs.

Task 2. Work with a partner. Look at the dialogue and discuss


what A. and B. say about the following subjects.

Task 3. Say it in English:

1. резервные требования reserve requirements


2. денежная база monetary base
3. любое увеличение any increase
4. суммарные активы total assets
5. меньшая часть a lower fraction
6. процентная ставка interest rate
7. воспользоваться to make use of / to take advantage of
8. возможности прибыльного lucrative lending opportunities
кредитования
9. занимать деньги to borrow money
10. банк не захочет выдавать the bank will be reluctant to bank
кредит
11. поощрять to induce
12. деньги в обращении cash in circulation
13. восстановить прежний уровень to restore one’s former level
14. волна снятий денег со счетов a flood of withdrawals
15. учётная ставка, учётный discount rate
процент; ставка дисконта
16. снизить запасы наличности to push cash reserves below / to drive
cash reserves down
17. штрафная процентная ставка the penalty rate
18. дополнительные ссуды extra loans
19. было бы разумнее it makes more sense

23
20. при таких обстоятельствах in these circumstances
21. добровольно держать to hold additional cash reserves
дополнительный запас voluntarily
наличности

Task 4. Produce your own dialogue about the difference between


the terms “credit” and “loan”. Search the Internet for the
word combinations The Five C’s of Credit, trade credit, credit
default swap market, credit risk exposure, credit insurance,
secured loans/unsecured loans. Make a full use of the
underlined helpful phrases from Dialogue 1 and Supporting
Materials.
DIALOGUE 2
Read and translate the following dialogue:
Documentary Payments
Task 1. Report the dialogue. Use the following reporting verbs.

Task 2. Work with a partner. Look at the dialogue and discuss


what A. and B. say about the following subjects.
Task 3. Say it in English:

1. разъяснить детали to clarify some details


2. особая документация the specific documentation
3. оплачивать расходы to pay the charges and / or expenses
4. после оплаты against payment
5. условие торговой сделки, documents after payment
означающее, что покупатель
может получить товар или
документы на товар только после
его оплаты
6. срок платежа the date of payment
7. передача документов на право documents against acceptance
владения собственностью после
принятия покупателем чека к
оплате
8. (переводной) вексель a bill of exchange

24
9. после предъявления after sight
10. дать скидку с суммы, to discount the letter of credit
причитающейся по аккредитиву receivables
11. аккредитив a letter of credit
12. гарантия оплаты a guarantee for payment
13. платёжеспособность покупателя the creditworthiness of the buyer

14. преимущества очевидны advantages are obvious


15. срок поставки the delivery time
16. действие кредита the validity of the credit
17. оплатить доставку to finance the delivery
18. обязательство the obligation
19. на основании претензий on the grounds of reclamation
20. получение платежа the receipt of payment
Task 4. Use Supporting Materials to continue the dialogue about
documentary payments. Search the Internet for key words:
revolving letter of credit, transferable letter of credit, back-to-
back credit, stand-by credit. Make use of helpful phrases from
Dialogue 2 “Main Types of Documentary Credits”.

1.7 Reading for Cross-cultural Associations


a. Read the texts (A, B, C) below.
b. Draw a parallel between banking habits of different layers of
society in different nations. Surf the Internet for keywords
automated teller machines, a credit card payment, saving schemes,
student banking. Fill in the chart with “usually”, “more often
than not”, “seldom”, “never”. Discuss your findings with the
partner.

1.8 CASE STUDY & ROLE PLAY


Islamic Banking
Case Analysis

1.8.1 Develop the following ideas. Make use of the expressions in


brackets.
25
Critical Thinking Tasks

1.8.2
A. Search the Internet for keywords Islamic banks; Islamic
Finance; Sharia. Use the obtained information in your
case analysis.
B. Study the table. Analyze it.
C. Sum up opinions concerning attempts to find ways of mixing
Islamic laws with modern finance. List the possible problems
associated with it.
D. Say how Islamic banking differs from traditional banking.
Give reasons why countries try to get to grips with this problem.
E. Explore the BBC NEWS Internet site for the following items:
 Is Islamic finance the answer? (11 May 09 | Business )
 Islamic finance: From niche to mainstream. (23 Mar
07 | Business)
 Banks move into Islamic finance. (09 Jun 06 | Middle East)
 Faith Diary: Banking on Sharia. ( 09 Mar 09 | Religion)
 Sharia-compliant mortgages.

F. Prepare a report on the case. Use the instructions below.

Role-Play
Situation
Task
Act out a TV debate on the future of the Islamic versus traditional
banking.
Make use of the helpful phrases.

26
Making a Decision
Your decision:

1.9 GRAMMAR BACK UP

PRACTICE
WITH REAL PRESENT OR FUTURE CONDITIONALS
Exercise 1.9.1
Put the verbs in brackets into the correct form: will/won’t or the
present simple.

Model: When money is (be) tight, exchange rate will probably rise (to
rise) if there is (to be) the same demand but less money.
1. If there is (to be) a shortage of liquidity in the market,
commercial banks will attempt (to attempt) to obtain
liquidity from the central bank by selling assets.
2. If the central bank __adds____ (to add) liquidity to the banking
system, this ___ will have _____ (to have) the effect of increasing
the money supply.
3. If the banks ___do not maintain ____ (not to maintain) accounts
with each other, they ___ will communicate ___ (to communicate)
via a third correspondent bank.
4. If payment ___ hasn’t been effected (still isn’t effected) ___ (not
to effect) yet, the customer ___ will require ___ (to require) to do
so immediately taking all care to avoid duplication.
5. We ___ won’t speak ____ (to speak) about the terms of payment if
you ___ do not agree ____ (not to agree) with the prices.
6. If the central bank ___ wants ____ (to want) to mop up liquidity it
can simply decide not to renew some of the loans.
7. If the quality of the model ___ does not meet ___ (not to meet) our
requirements we ___ won’t place ___ (not to place) an order with
you.

27
8. We ___ will appreciate _____ (to appreciate) your urgent
assistance highly, if you ___ investigate ___ (to investigate) this
matter promptly.
9. You __ will raise ___ (to raise) the large amount of money needed,
if you ___ combine ___ (to combine) the resources of a number of
people and ___ form ___ (to form) a corporation.
10. If John Martin ___ is asked ___ (to be asked) to join the Board, he
___ will be ___ (to be) a useful counter to Wentworth.
11. If John Martin ___ is made ___ (to be made) a director, his advice
at Board Meetings ___ will be invaluable ___ (to be invaluable).

Exercise 1.9.2
If the underlined word or words are used incorrectly, make
correction.
1. If H.G. (buys) will buy 250 more shares in Harper & Grant Ltd., he
will postpone the possibility of a takeover.
2. If we give them more time, perhaps they (will) would make up their
minds.
3. If the company introduces monthly accounting by cost centers, the
Board will have information about the company’s trading position
more accurately and more often than at present.
4. We (will) would sign a contract with this company if they give us a
good discount.
5. I’d like to stress that it is our trial order with your company and if
(we are satisfied) we’ll be satisfied with our transaction you can
expect repeat orders from us.
6. - And how about the manner of payment?
- If payment by a Letter of Credit (suits) will suit you, we’ll open a
line of credit with a reliable bank.

28
7. I’m sorry to say it is not acceptable to us. You have quoted a very
high price. If you (don’t offer) doesn’t offer a more reasonable
price, we’ll have to find another partner.
8. If you give us a discount of 2% off the value of the contract, we
(will) would make a larger order.
9. If the central bank (lowers) will lower the refinancing rate, banks
will feel freer to lend.
10. We (will dispatch) should dispatch you a documentary Letter of
Credit, provided certain conditions are fulfilled.
11. If the central bank (raises) would raise the refinancing rate,
commercial banks will try and rein in their lending rather than
borrow reserves from the central bank.
12. If the corporation (makes) will make a profit, shareholders will
receive a dividend, i.e. a share of the profit paid on the stock.

Exercise 1.9.3
Find a mistake if any and give the right variant.
1. Alfred Wentworth will have got to be asked to join the Board
A
provided he owns such a large propotion of the shares.
B C D
2. Such an ambitious young man like as John Martin will easily be
A B
tempted away by another firm if Harper & Grant Ltd. do not make it
C
worth his while to stay.
D
3. As long as a particular insurance company will consider_considers
A
that the risk it has assumed responsibility for is much too big, it may
B C D
share the business with other companies, by way of reinsurance.

4. If people begin to lose confidence in the banking system they may

29
A
decide to withdrew withdraw deposits and hold more
B
currency. When this happens, the banking system loses reserves.
C D
5. Should you be unable to send the beneficiary an official receipt,
A B
kindly send to him a copy of the account statement.
C D
6. The more money households will deposit, the more reserves banks
A B C
can have, and the more money the banking system can create.
D
7. If companies’ memoranda is are passed over to the registrar of
A B
companies, then the public may inspect the document thoroughly.
C D
8. When money are is deposited in a bank, it creates more money
A B
only when the bank lends it out.
C D

9. If the actual income or expenditure varies greatly from any budgeted


A B
figure, the manager will explain the situation and takes take
C D
appropriate actions.

Exercise 1.9.4
Translate into English.
1. If you open a deposit account (thrift account / savings account /
time deposit) with (at / in) the bank, you will get (receive / draw)
some interest on it.
2. If the corporation gets (makes) some profit, the Board of
Directors will be able to make a decision(to take a decision)
about the reinvestment of the part of the profit into the
corporation with the aim of expansion, modernization, research
work and further development.

30
3. If you open the account with the above mentioned (above / a.m. /
the same / the said / afore-mentioned / aforesaid / above-
mentioned / referred / above cited / above-said / above-stated)
bank, you will have the right (you will be entitled / authorized) to
overdraw (exceed a credit) for the amount / sum of $500 monthly
(once a month / per month / a month).
4. If you order more than 100 000 items of these goods, we will
reduce (lower / mark down) the price by 50%. If you agree to
these terms and conditions (accept these terms and conditions),
we’ll give (pass / hand over) you our contract.
5. If you want us to investigate this matter quicker, inform (advise)
us about the date and number of your payment order as soon as
possible (asap).
6. Please (Kindly), allow (permit) us to debit your account with (the
sum of) GBP5000, if you want us to make (effect / execute)
payment without any delay.
7. We will be able to dispose of the funds if (on condition that /
provided that / providing that / suppose that / supposing that) you
provide us with the full address of the beneficiary.
8. If the photocopy can’t be received, please (kindly) contact the
issuing bank.
9. The credit will be considered (to be) confirmed if the advising
bank agrees.
10. If the company unexpectedly (suddenly) suffers big (heavy /
serious) losses (sustains losses), we will have to take quick
actions (to act quickly).
Для учебника 2011 года издания.
11. If the Chairman of the company’s Board of Directors buys 250
more shares, he will reduce the risk of a takeover by the
company’s rivals (competitors).
12. When we introduce monthly accounting concerning direct
departments, we’ll have more accurate and precise information
about the status (the state of affairs) in the company.
13. We won’t agree to the deal (accept the deal), if our partners
don’t agree to the payment by an irrevocable Letter of Credit
(L/C), confirmed (acknowledged) by a sound (reliable) bank.
14. We’ll address the credit (loan) department on condition that the
Central bank reduces the refinancing rate.

31
15. We can carry out / conduct an internal audit more often if it
doesn’t interfere with (in) the work of the staff (personnel /
employees).

Exercise 1.9.5
CONTEXT

Read the text below. In most of the lines 2-27 there is one wrong
word or word combination. Some lines, however, are correct.
 If a line is correct, put a tick () in the space in the right-hand
column.
 If there is a mistake in the line, write the correct word in the right-
hand column.

1 As we have already discussed, the central bank is responsible for .......


2 the control of the supply of money in the economy. Now when .........
3 that we understand how fractional-reserve banking works, we .........
4 are in a better position to understand how the central bank .........
5 carries out its work. Because banks create money in the system .........
6 of fractional-reserve banking, the central bank’s control of the .........
7 money supply is undirect indirect. When the central bank will .........
8 decides to change the money supply, it must consider how it’s .........
9 its actions will work through the banking system. In general, a .........
10 central bank has 3 main tools in its monetary toolbox: open- .........
11 market operations, the refinancing rate and reserves .........
12 requirements. .........
13 If the central bank will wants to increase the money supply, it .........
14 can create currency and use them it to buy bonds from the .........
15 public in the bond market. After the purchase, the extra currency .........
16 is in the hands of the public. Thus, an open-market purchase of .........
17 bonds by the central bank increases the money supply. If, on .........
18 the other hand, the central bank wants to decrease the money .........
19 supply, it can sell bonds from its portfolio to the public. .........
20 After the sale, the currency it receives for the bonds has is out of .........
21 hands of the public. Thus the open-market sale of bonds with the .........
22 central bank decreases the money supply. .........

32
23 To be precisely, the open-market operations discussed in these .........
24 examples are called calling outright open-market operations, .........
25 because they each each of them involves an outright sale or .........
26 purchase of non-monetary assets to or from the banking sector .........
27 without a corresponding agreement to reverse a transaction at a ..
later date.

PRACTICE WITH UNREAL PRESENT


OR
FUTURE CONDITIONALS
Exercise 1.9.6
Put the words in brackets into the correct form.
1. If you __ had ___ (to have) any problems concerning the statement
of the account, we could provide you with urgent assistance.
2. If the commercial bank ___ opened ____ (to open) branches in
major towns, its customer base would increase considerably.
3. If you ___ sent ___ (to send) us the statement of our account in your
previous letter, we would check it.
4. If the Board of Directors made a positive decision, they would
summon (to summon) me.
5. If John Martin had (to have) two shares, he could become a
director.
6. If the actual income or expenditure ___ varied ____ (to vary)
greatly from any budgeted figure, the manager would have to
explain why his actual figures differed from his forecast.
7. If you sent (to send) us the credit-advice, this amount of €
560 would be credited to your account.
8. If profitability went down (to go down), it would be necessary
to increase prices, cut costs and so on.
9. If old Wentworth ___ tried ___ (to try) to make things go his way,
H.G. would want to strengthen his position.
10. If H.G. ___ agreed ___ (to agree), Peter would want John Martin
on the Board as an added support for himself.

Exercise 1.9.7
If the underlined word or words are used incorrectly, make
correction.
33
1. We could investigate this matter further if you supply supplied us
with a complete description of each item.
2. If the Board will appoint appointed a Managing Director, he or
she would be directly responsible to them as a member of the
Board.
3. If you looked into the matter once again and inform informed us
of the present situation we could close the matter in our books.
4. If you opened a current account it will not offer would not offer a
high rate of interest and will not be would not be the best way to
save large sums of money for any long period of time.
5. We should disposed should / would dispose of the funds if you
provided us with the name of the local bank with which the
beneficiary’s account was maintained.
6. We would closing close our files if you authorise authorised us to
release the documents free of payment.
7. If a customer of a bank opened a deposit account, he can could
also have a current account and this will would also make the
transfer of money from one account to the other an easy matter.
8. If H & G Ltd didn’t act quickly, it would be too late to prevent the
loss from getting larger still.
9. If the activities of the company would break down broke down
into cost centers, each manager would be responsible for at least
one cost center.
10. If the manager were responsible for his cost center, he will would
be required to forecast the income and expenditure of this very
center.

Exercise 1.9.8
Translate into English.
1. We should / would place the above mentioned sum (amount) at
the beneficiary’s (receiver’s) disposal immediately (at once /
promptly / urgently) on the 5th of May if you sent us original
instructions.
34
2. If the credit-advice had the signature of the authorised person, we
should / would be able to fulfil your orders.
3. If the representative of the Bank for Foreign Trade was / were in
London now, of course, he would be able to help us but he will
arrive only at the end of the week.
4. We should / would close this matter and send it to the archive
(record-keeping office) if we received the subject mail payment
order (the mail payment order in question / under consideration).
5. If the representatives of the state of Abraca made the contract for
the delivery of office equipment today, then they would be
allowed (given / granted) a big discount.
6. If Hector Grant bought 250 shares of “Harper & Grant Ltd.”, he
would be able to postpone the possibility of a takeover.
7. If John Martin became the member of the Board of Directors, his
advice at the meetings would be invaluable.
8. If sales went down, we should / would reduce our stock, and if it
was necessary, we would reduce the staff.
9. If the Central bank reduced the refinancing rate, interest rates for
the credits would become lower and they would be more
available for the population.
10. If the Central bank didn’t impose restrictions, commercial banks
would extend (supply / provide / give / grant) many more credits
(loans).
11. If corporations could raise large amounts of money, they would
use them (amounts) / it (money) in order to modernize the new
models, to replace the obsolete equipment, to build (construct)
new plants.
Для учебника 2011 года издания.
12. If your payment was made in time, we would be able to transfer
this sum as the settlement of your debt (repayment of a debt).
13. The company would suffer (sustain) big (heavy / serious) losses
and would be taken over by another company if we didn’t get

35
the credit. But if the bank with which we had been working for
a long time didn’t provide us with a credit, we would have to
contact another organization (institution).
14. If the inventory holdings were estimated (appraised /
appreciated / computed) correctly, auditors wouldn’t reveal
(detect / develop / display / find out) any discrepancies in the
financial statements.
15. The auditors would get a bad impression about the state of
affairs (the state of things) in the company if the financial
director didn’t submit (deliver / present) the Profit & Loss
Account (P & L Account / the Income statement) on demand (at
a moment's notice).

Exercise 1.9.9
CONTEXT
Read the text below. In most of the lines 2-19 there is one wrong
word or word combination. Some lines, however, are correct.
 If a line is correct, put a tick () in the space in the right-hand
column.
 If there is a mistake in the line, write the correct word in the right-
hand
column.
1 Banks need to carry enough reserves to cover their lending ...........
2 and will generally aim to at a certain ratio of the reserves .............
3 to of deposits, knowing known as the reserve ratio. The .............
4 minimum rate may be set by the central bank, but even if .............
5 it would did not, it would still have a reserve ratio that .............
6 they would consider be to be prudent. Now, because .............
7 deposits and withdrawals at banks can fluctuate random at .............
8 random, some banks may find that they have an excess of .............
9 reserves one day, while another other banks may find that .............

36
10 they are short in of reserves and their reserve ratio is low. .............
11 The market for short-term reserves is called the money .............
12 market. If there would be was / were a general shortage of .............
13 liquidity in the money market (because banks together .............
14 have made a lot of lending), then the short-term interest .............
15 rate at which they could lent could lend to one another, .............
16 would begin to rise, while it would begin to fall if there .............
17 would be was / were excess liquidity among banks. The .............
18 central bank closely monitors the money supply and may .............
19 intervene in it in order to affect on the supply of liquidity .............
to banks, which in turn influences their lending and hence .............
influences the money supply.

PRACTICE WITH UNREAL PAST CONDITIONALS


Exercise 1.9.10
Put the verbs in brackets into the correct form. Mind that talking is
about unreal situations in the past.

Model:
- If Donald Kennet (not to undertake) a dishonest action a week
ago, he ______ (not to be dismissed).
- If Donald Kennet hadn’t undertaken a dishonest action a week ago,
he wouldn’t have been dismissed.

1. It would have made (to make) a bad impression yesterday, if the


accounts department hadn’t supplied (not to supply) all the books
and records for the period in question immediately.
2. If William Buckhurst hadn’t put (to put) paint in the right column
last week, the anomaly wouldn’t have happened (not to happen).

37
3. If Mr. Brent had checked (to check) the bank statement the day
before yesterday, he would have noticed (to notice) that the
amount paid in was less than the amount drawn out.
4. If Donald Kennet had asked (to ask) the Personnel Manager to
draw his pay in advance a week ago, he wouldn’t have had to steal
(not to have to steal) the money.
5. If Donald Kennet had paid (to pay) money back before William
Buckhurst’s investigation, he wouldn’t have been dismissed (not
to dismiss).
6. If I had known (to know) the basic rights of the stockholders last
year, I wouldn’t have made a mistake (not to make a mistake)
then.
7. If the Paying Bank had maintained (to maintain) accounts with the
Home Bank the previous accounting period, all bank transfers
would have been made (to make) directly.
8. If our principal had enclosed (to enclose) a duplicate copy of
account in advance, we wouldn’t have looked into (not to look
into) the matter promptly.
9. If everything that goes into making up the Profit Statement, the
Balance Sheet and the Directors’ Report had been corrected (to be
correct) last quarter, the auditors would have been satisfied (to be
satisfied).
10. If all other calls on a company’s profit had been satisfied (to be
satisfied) last year, a return wouldn’t have been received (not to
receive).

Exercise 1.9.11
If the underlined word or words are used incorrectly, make correction.

1. In case of bankruptcy the owner’s equity will would have been


repaid only if everyone else, including employees, creditors, banks,
etc. had received what they were owed.
2. If the members of the Board of Directors took had taken prompt
actions earlier, they would have prevented a temptation of a fiddle.

38
3. If the proportion of long-term debt has been had been greater, the
company would have been more exposed in times of economic
difficulty.
4. If your account has not overdrawn had not been overdrawn 3 days
ago, a further charge would not have been made.
5. If a commission charge was not hadn’t been so high we have taken
would have taken their offer.
6. If the Drawer’s signature didn’t match hadn’t matched the
specimen signature, the bank teller wouldn’t have drawn money
from the account.
7. If the named Payee had wished to pass on the cheque as payment to
someone else he should notify would have notified his bank clerk
about it. We don’t have such an order from him.
8. If the company’s trading had slowed down, then the high interest
charges associated with gearing will have increased would have
increased the rate of slow-down.
9. If your shipping documents had arrived duly, the terms and
conditions of the documents would be complied with would have
been complied with.
10. If we have not received had not received a reply to the above telex
yesterday, we would have considered your payment null and void
and we will have closed would have closed our records on this
transaction without entry.
11. If you had not given 7 days’ notice of withdrawing money from
your deposit account, you would lose would have lost 7 days’
interest on the money.

Exercise 1.9.12
Translate into English.
1. If William Buckhurst hadn’t provided records (books / notes /
files) for the accounting period immediately (promptly / at once /
urgently), it would get a bad impression on the auditors.
2. If the value of commodities (goods / merchandise), e.g. copper,
hadn’t fluctuated so often, the stock valuation of all goods available
for sale wouldn’t have been one of the most difficult jobs.

39
3. If the chief auditor hadn’t revealed (discovered / found out) any
discrepancies between the amount paid in and the amount drawn out,
William Buckhurst wouldn’t have started the investigation in relation
to (in point of / as to / in respect of) Donald Kennet.
4. If Donald Kennet had addressed the Personnel Manager, the
possibility would have been arranged to draw his pay in advance.
5. If it hadn’t been Kennet who was responsible for the fiddle with
two vouchers, he wouldn’t have been dismissed.
6. If our Head office in the Hague had received your initial
instructions a week ago, the goods would have been able to be shipped
on the 5th of June in compliance with the invoice (according to the
invoice / in accordance with the invoice).
7. If the company had gone under (had gone bankrupt / had gone
belly up), then the owner would have received his capital only after the
employees, creditors and banks had got all that they had been owed.
8. If the money supply in the economy had reduced (had decreased /
had gone down / had lowered), interest rates on credit would have
gone up (would have increased) as the commercial banks would have
had to borrow money at a higher rate at the interbank market.
9. If the client had withdrawn money from his account in 7 days, he
wouldn’t have lost his interest.
10. If the beneficiary had called at our counters (bank / banker) in
due time (duly), he would have collected the above mentioned funds.
11. If you had investigated (looked into / checked into) this matter
once again and informed (advised) us about it by return mail (by
return), we would have been able to send it to archive (record-keeping
office).
12. If we had received the subject payment order (the payment order
in question / under consideration), we would have been able to fulfill
your instructions dated (dd / of) the 12th of May.
13. We would have transmitted (transferred / remitted / passed over)
the above mentioned amount without any delay in due time if you had
had an authorised signature on the document.

40
Exercise 1.9.13
Below are some flashes of conversation in which two people speak
about auditing. Tick () the correct words or word combinations.
Mr. A
- If we considered| would consider| had considered the traditional
definition of auditing, it would have been a review and an evaluation
of financial records by a second set of accountants.

Mr. B
- I should confess that if we had discussed an internal audit,
we defined| will have defined| would have defined) it as a control
by a company’s own accountants, checking for completeness,
exactness or accuracy and reliability. If internal auditors had
checked other things, they (would look for; will have looked for;
would have looked for) departures from a firm’s established
methods for recording business transactions.

Mr. A
- In most| the most| most of countries, the law would require all
firms to have their accounts audited by outside company. Thus if we
had spoken| spoke| had been spoken about an independent audit, we
would have meant a review of financial statements and accounting
records by an accountant not belonged to; not belonging to; not
belonging the firm. The auditors judging; would have to judge; will
have judged whether the accounts gave what in Britain was known
as a “true and fair view” and in the USA as a “fair presentation” of
the company’s or corporation’s financial position.
Mr. B
- If auditors had been appointed by a company’s most senior
executives and advisors, their choice would have had to be
approved would have to be approved| will have had to be
approved by the owners of the company’s equity at the company’s
yearly assembly. If auditors write| wrote| had written an official
audit report, they might also have addressed a “management letter”

41
to the directors, outlining inadequacies and recommending improved
operating procedures.

Mr. A
- If we had mentioned| mentioned| had mention the more recent use
of the word “audit” as an equivalent term for “control”, we would
have meant the following: multinational companies might
undertake| might have undertook| might have undertaken
inventory, marketing and technical audits, if auditing had meant
verifying that general management instructions were being executed
in branches, companies which they controlled.

2 Public Finance & Taxation


DEVELOPING VOCABULARY
2.2.1. Consult a dictionary and practise the pronunciation of the
following words and word combinations, quote the sentences
in which they are used in the text or submit the examples of
your own:
access ['ækses]
ad valorem excise [ˌædvə'lɔːrem] ['eksaɪz ] / [ek'saɪz ]
/ [ɪk-]
allocations of resources [ˌælə'keɪʃ(ə)nz] [ɔv] / [əv] [rɪ'zɔːs ]
/ [-'sɔːs]
Chancellor of the Exchequer ['ʧɑːn(t)s(ə)lə] [ɔv] / [əv] [ðiː] /
[ðɪ] / [ðə] [ɪks'ʧekə ] / [eks-]
coherent [kə(u)'hɪər(ə)nt]
compliance [kəm'plʌɪəns]
compulsory levy [kəm'pʌls(ə)rɪ] ['levɪ]
contingency reserve [kən'tɪndʒ(ə)nsi] [rɪ'zɜːv]
delinquency lags [dɪ'lɪŋkwən(t)sɪ] [lægz]
distortions in incentives [dɪ'stɔːʃ(ə)n] [ɪn] [ɪn'sentɪvz]
exemption limit [ɪg'zempʃ(ə)n ] / [eg- ] / [ɪkˌsem- ] /
[ek-] ['lɪmɪt]
gross receipts [grəus] [rɪ'siːts]
42
in excess of [ɪn] [ɪk'ses], [ek-] [ɔv] / [əv]
juridical [dʒʊ'rɪdɪk(ə)l]
luxury ['lʌkʃ(ə)rɪ ] / ['lʌgʒ-]
overt (covert) political [ə(u)'vɜːt ] / ['əuvɜːt]( ['kʌvət])
processes [pə'lɪtɪk(ə)l] ['prəusesɪz]
squawk [skwɔːk]
substantial erosion [səb'stæn(t)ʃ(ə)l] [ɪ'rəuʒ(ə)n]
the aggregate of two [ðiː] / [ðɪ] / [ðə] ['ægrɪgət] [ɔv] /
[əv] [tuː]
thrift institution [θrɪft] [ˌɪn(t)stɪ'tjuːʃ(ə)n]
to allow scrutiny [tuː] / [tu] / [tə] [ə'lau] ['skruːtɪnɪ]
to be acute [tuː] / [tu] / [tə] [biː] [ə'kjuːt]
to be blurred deliberately [tuː] / [tu] / [tə] [biː] [blɜːd]
[dɪ'lɪb(ə)rɪtlɪ]
to be inferior (superior) to [tuː] / [tu] / [tə] [biː] [ɪn'fɪərɪə]
([s(j)uː'pɪərɪə]) [tuː] / [tu] / [tə]
to be unrequited [tuː] / [tu] / [tə] [biː] [ˌʌnrɪ'kwaɪtɪd]
to be valid (invalid) [tuː] / [tu] / [tə] [biː] ['vælɪd] (['ɪnvəlɪd])
to bear the ultimate burden [tuː] / [tu] / [tə] [bɛə] [ðiː] / [ðɪ] / [ðə]
['ʌltɪmət] ['bɜːdn]
to constitute an expenditure [tuː] / [tu] / [tə] ['kɔn(t)stɪtjuːt] [æn] / [ən
] / [n] [ɪk'spendɪʧə ] / [ek-]
to disguise [tuː] / [tu] / [tə] [dɪs'gaɪz]
to execute monetary policy [tuː] / [tu] / [tə] ['eksɪkjuːt ] / [-sək-]
['mʌnɪt(ə)rɪ] ['pɔləsɪ]
to obscure [tuː] / [tu] / [tə] [əb'skjuə]
to quadruple the national debt [tuː] / [tu] / [tə] ['kwɔdrupl] [ðiː] / [ðɪ] /
[ðə] ['næʃ(ə)n(ə)l] [det]

2.2.2 Match the English word combinations in the left-hand


column with the Russian equivalents in the right-hand
column:
1. to execute monetary policy A осуществлять денежную
политику
2. to be measured by the potential B измеряться потенциальными
obligations of the government обязательствами правительства
3. tax receipts C налоговые поступления
4. to meet the excess of expenditure D покрывать превышение расходов
43
over receipts над доходами
5. the repository for funds E хранилище для денежных
средств
6. to perceive a deterioration of a F ощущать ухудшение
service rendered предоставленной услуги
7. to pay for social security benefits G выплачивать пособия по
соцобеспечению
8. to allow scrutiny H дать разрешение на проведение
проверки
9. to spread the tax burden among the I распределять налоговое бремя
taxpayers среди налогоплательщиков
10. to promote (retard) economic J способствовать экономическому
growth росту (замедлять)
11. the overt (covert) processes K открытые (скрытые) процессы
12. a capital gains tax L налог на реализованный прирост
капитала
13. to collect revenue M собирать доход
14. a capital transfer tax N налог на передачу капитал
15. to draw up the budget O составлять бюджет
16. to handle public funds P управлять государственными
средствами
17. to formulate a coherent set Q сформулировать единый набор
of proposals предложений
18. to obscure features of the budget R делать неясными какие-либо
черты бюджета
19. to entitle smb to receive direct S дать право кому-либо получать
benefits in return for the tax прямые выгоды в обмен на налог
20. the contingency reserve T резерв на случай чрезвычайных
обстоятельств
21. to be taxed at a single, uniform rate U облагаться налогом по единой
ставке
22. to monitor one’s cash flow V контролировать чей-либо
денежный поток
23. to exceed government revenue W превышать доходы правительства
24. to promote full employment and X стимулировать полную занятость
monetary stability и денежную стабильность
25. to pass a revised budget Y принимать, утверждать
пересмотренный бюджет

44
Scanning
2.4.2 Scan the text to determine whether these statements are true
(T) or false (F), and if they are false say why:

e.g. In my opinion it is true that ... .


I’m afraid it is false that ... because … .

F 1. The Treasury is the only link of the financial system through


which companies, households and units of government obtain
the money they need
T 2. Finance is a system of monetary relations leading to
formation, distribution and use of funds in the process of their
turnover between economic units. Finance can be divided
into public finance and finance of economic entities.
F 3. The encouragement of the growth of economy as a whole is
the single function of public finance.
T 4. Public finance is the supply of money (by the community
through taxes) which should be spent by national and local
governments for national and local benefit.
T 5. Central government spends funds raised by direct and
indirect taxation on goods and services, such as health and
defense, and payments to people such as social security and
pensions.
F 6. The payment of a tax by a person entitles him or her to
receive some direct benefits and services from the
government in return for the tax. The more an individual pays,
the larger range of benefits and services he or she obtains.
F 7. The government uses the benefit and social security system in
order to redistribute income within the private sector of the
economy, to tax some activities and subsidize others.
T 8. The economic breakdown of government expenditure varies
among countries. Most оf them are broken down by major
functional categories such as defense, education, social

45
security, houses and so forth, which are to serve as guides in
the preparation of annual budgets.

2.4.3 Scan the text and find the information to complete the
following lists:
1. In today’s economies taxes are
A the most important source of government revenue.
B compulsory levies that are regularly imposed and, as a rule not
destined for a special purpose.
C regarded as a contribution to the general revenue pool from which
most government expenditures are financed.
D unrequited - i.e., they are not paid in exchange for some specific
thing or any particular benefit but represent a general obligation of
taxpayers.
2. Taxation is the main form of government finance.
A People are required to fund governments by paying taxes.
B Taxes are compulsory payments and every citizen of the country is
legally bound to the tax, imposed upon him.
C Taxes are paid by the taxpayer to enable the government to incur
certain expenses in the common interests of the society.
D The payment of a tax by a person does not entitle him to receive any
direct benefits or services from the government in return for the tax.

3. Taxes are considered to have some functions:


A (1) fiscal or budgetary, to cover government expenditures as they
are not financed from other sources (fees, profits from public
enterprises, the issue of public debt, the creation of money)
B (2) economic, to promote such general aims as full employment,
monetary stability and a satisfactory rate of economic growth within
the framework of market economy

46
C and (3) social or redistributive, to reduce inequalities in the
distribution of income and wealth to the extent they are considered
excessive and unjust
D In addition to these main functions, taxes have also been used for
non-fiscal ends such as to encourage consumption, family size, etc.

4. The economic breakdown of government expenditure varies among


countries in the following ways:
A Most оf them are broken down by major functional categories such
as defense, education, social security, houses and so forth, which are
to serve as guides in the preparation of annual budgets.
B The functional breakdown is also intended to assist legislative
discussion.
C _____________________________________________________
D _____________________________________________________

2.4.4 Scan the text again and find the English equivalents for the
following:

1. получать денежные средства to obtain funds


2. предоставление денежных средств the provision of funds
3. сберегательные учреждения thrift (savings) institutions
4. стимулирование роста экономики в the encouragement of the
целом growth of the economy as a
whole
5. расходовать средства на проекты, to spend on projects of national
связанные с национальными и and local benefits
местными пособиями
6. получать деньги (аккумулировать to raise money from individuals
средства) от физических и and companies
юридических лиц
7. прямое / косвенное налогообложение direct and indirect taxation

8. являться обязательными налогами,


to be compulsory levies that are
которые взимаются регулярно regularly imposed

47
9. рассматриваться в качестве вклада в to be regarded as a contribution
совокупный доход государства to the general revenue pool
10. представлять общее обязательство to represent a general obligation
налогоплательщиков of taxpayers
11. давать право кому-либо на получение to entitle smb to receive any
пособий и услуг напрямую от direct benefits or services from
правительства в обмен на налог the government

12. стимулировать полную занятость, to promote such general aims as


денежную стабильность, full employment, monetary
экономический рост stability and a satisfactory rate of
economic growth
13. уменьшать неравенства в to reduce inequalities in the
распределении дохода и богатства distribution of income and
wealth
14. получать доход посредством местного to raise revenue mainly through
поимущественного налога / налога на rates (local property taxes)
недвижимое имущество
15. предоставлять субсидии или налоговые to award grants or tax
льготы в качестве вознаграждения concessions
16. экономическая классификация the economic breakdown of
(разбивка, распределение по статьям, government expenditure
анализ) правительственных расходов
17. служить ориентиром при подготовке to serve as guides in the
ежегодного бюджета preparation of annual budgets
18. предназначен для содействия процессу to assist legislative discussion
законотворчества
19. ощущать ухудшение предоставленной to perceive a deterioration of a
услуги service rendered
20. ответить резким сокращением to respond by severe contractions
определенных программ оf particular programs of public
государственных расходов expenditure
21. спровоцировать неадекватную to provoke inappropriate
реакцию общественности reactions of the public
22. федеральные и местные органы власти central and local governments

2.5 PRACTICE

Language focus
Word Building

48
5.5.1 Consult a dictionary and practise the pronunciation of the
following words and word combinations:
1. to authorization authority authorized
authorize [ˌɔːθ(ə)raɪ'zeɪ [ɔː'θɔrɪtɪ] ['ɔːθ(ə)raɪzd]
['ɔːθ(ə)raɪz] ʃ(ə)n]
2. debt debtor indebtedness
[det] ['detə] [ɪn'detɪdnəs]
3. (re) (re) (re)
distribute distribution distributive
[ˌriːdɪ'strɪbj [ˌriːdɪstrɪ'bjuː [ˌriːdɪ'strɪbjutɪv
uːt] ʃ(ə)n] ]
4. to execution executive executor
execute [ˌeksɪ'kjuːʃ(ə) [ɪg'zekjutɪv], [ɪg'zekjutə],
['eksɪkjuːt ], n], [-sə'k-] [eg-] [eg-]
[-sək-]
5. to licence licensed licensee licenser
license ['laɪs(ə)ns] ['laɪs(ə)nst] [ˌlaɪs(ə)n'siː] ['laɪs(ə)nsə]
['laɪs(ə)ns]
6. to legislator legislation legislature legislative
legislate ['leʤɪsleɪtə] [ˌleʤɪ'sleɪʃ(ə)n ['leʤɪsləʧə], [- ['leʤɪslətɪv]
['leʤɪsleɪt] ] leɪʧə]
7. heir heiress heirdom
[ɛə] ['ɛəres] ['ɛədəm]
8. to inheritance inheritor inheritress inheritable
inherit [ɪn'herɪt(ə)ns] [ɪn'herɪtə] [ɪn'herɪtrəs] / [ɪn'herɪtəbl]
[ɪn'herɪt] inheritrix
[ɪn'herɪtrɪks]
9. to provided provision provisional
provide [prə'vaɪdɪd] [prə'vɪʒ(ə)n] [prə'vɪʒ(ə)n(ə)l
[prə'vaɪd] ]
10. to scrutinize scrutiny
['skruːtɪnaɪz ['skruːtɪnɪ]
]
11. to a transfer transferable transferee transferor transference
transfer ['træn(t)sfɜː], [træn(t)s'fɜːrəb [ˌtræn(t)sfɜː'riː [træn(t)s'fɜːrə [træn(t)s'fɜːr
[træn(t)s'fɜː] ['trɑːn-] l ], [trɑːn-] ], [ˌtrɑːn-] ], [trɑːn-] (ə)ns],
, [trɑːn-] [trɑːn-]

Skills focus

2.5.2 a. Read the extract and fill in prepositions wherever


necessary.
b. Discuss the text.
c. Give the text the appropriate heading.

49
Measuring the National Debt

Like measuring other economic information, measuring the


national debt is not easy. Depending on what is included, the national
debt can be measured in four different ways. The first measure
includes only the money borrowed to pay current government bills.
Usually when people refer to the national debt, this measure is used.
Some people believe that the federal debt should include loans
guaranteed by the federal government, known future government
expenditures, and potential obligations. A second measure of the
national debt, then, would include the amount of money borrowed by
agencies, corporations, or individuals but guaranteed by the federal
government. For example, the government guarantees repayment of
certain loans to college students. Though the government is not
actually in debt, it could be forced to pay out money if the student
cannot repay the loan. By including these types of guarantees, the
national debt increases 10 to 15 percent.
A third measure of the national debt includes the amount of money
the government expects to pay in the future because of current
obligations. For example, the government is obligated to pay billions
of dollars in social security payments to people who are currently
retired. These types of obligations almost quadruple the national debt.
Finally, the debt of the nation can be measured by the potential
obligations of the government. For example, the government operates
an insurance program for banks and farmers. If all insured banks
failed, all insured crops were destroyed, and all other possible claims
on the government were made, the total obligation of the government
would have been $6.8 trillion, about 5 times the national debt.

2.5.3 a. Complete the text by using the following word


combinations from the box and fill in the grid.
b. Discuss the text.
c. Provide the extract with short summary.
50
A a national budget F the total indebtedness
B correspond fully to reality G the private sector
C forecast of profits and growth H acute and clear
D are required to produce I credit agencies
E capital and current expenditures J to monitor their cash flow
The process of preparing and discussing a national budget (1) is
still inferior to the way budgeting is carried out by private sector
companies or by individuals. Commercial practice is governed by a
series of well-defined rules, and firms are required to produce (2) a
balance sheet, a profit and loss account, and to monitor their cash
flow (3) carefully. The total indebtedness (4) of a company is
monitored closely by its shareholders, who are also critical of future
forecast of profits and growth (5). Individuals who fail to budget
adequately are equally closely monitored by bank managers and
credit agencies (6), and those with complicated affairs can draw upon
skilled professional help.
The accountability of a government, even in a well-developed
democracy, is less acute and clear (7). As a result, governmental
budgeting is frequently of lower quality than is the norm in the
private sector (8). Forecasts of receipts and expenditures do not often
correspond fully to reality (9); changes to accounting practices are
sometimes made for cosmetic political purposes; and certain
distinctions, such as those between capital and current expenditures
(10) are frequently blurred deliberately. The criticism of the national
budgetary process is more valid in some countries than in others.

1 2 3 4 5 6 7 8 9 10
A D J F C I H G B E

d. Use the obtained information to say whether the statement


below is true or false, and if it is false say why:

“Due to a very acute and clear accountability of a government,


governmental budgeting is always of higher quality than is the
norm in the private sector.” F
51
2.5.4 a. Read the text, ignoring the missing parts.

Government spending often exceeds government revenue (1). A


deficit occurs when the income for a year is less than the expenditures
for the year. When the government adopts a deficit budget (2), it
must borrow money to pay its bills for the year.
The national debt is the money that the federal government has
borrowed because expenses exceeded tax revenue. Interest payments
on the national debt are a major item in the budget. The national debt
usually increases rapidly during wars.
The debt does have several effects on the economy (3). The
national debt increases the demand for money. When the government
borrows money, it may cause interest rates to increase. Then,
crowding out may result (4). Crowding out occurs when heavy
government borrowing causes interest rates to increase, thereby
preventing other potential borrowers from taking out loans.
Government borrowing may, in effect, use money that could be lent to
businesses or individuals. Crowding out reduces business expansion
and home purchases (5).
The national debt also influences the total demand for goods and
services in the economy. Government spending, like consumer and
business spending (6), increases total demand. A growing national
debt means that the federal government is spending more than it
receives in taxes. This situation promotes higher employment and
higher prices, and it may have an inflationary effect on the
economy (7).

b. Look at the missing parts A-H and fit them in the gaps. There is
one extra you don’t need.

A reduces business expansion and home purchases


B adopts a deficit budget
C may have an inflationary effect on the economy
D crowding out may result
E is a key instrument for the execution of government economic
policy
52
F often exceeds government revenue
G does have several effects on the economy
H like consumer and business spending

1 2 3 4 5 6 7
F B G D A H C

c. Find words or word combinations in the text that mean the


following.
the total amount of money that a government,
expenditure organization or person spends during a particular
period of time
national debt the debts of a central government, both internal and
overseas
a detailed plan made by an organization or a
government of how much it will receive as income
budget over a particular period of time, and how much it will
spend, what it will spend the money on
an amount of money that you must pay to the
tax government according to your income, property,
goods etc, that is used to pay for public services
money that a business or organization receives over a
revenue period of time, especially from selling goods or
services
interest a payment that repays interest on a loan, bond, etc,
payment rather than paying off any of the original amount
the amount by which what a government spends is
budget deficit more than it receives in taxes or other income, during
a particular period of time
income money that you earn from your job or that you receive
from investments

2.5.5 Substitute the words and word combinations given in bold


type by synonyms or synonymous expressions from the
active.
53
1. Mr. Duncan will need to collect a huge amount of money (to
raise money) to finance his large order for office furniture.
2. Each year a government makes a detailed plan of how much it
will receive as income over a particular period of time, and
how much it will spend, what it will spend the money on (to
draw a budget) and suggests a series of financial targets.
3. People who are old and no longer work, or people who are
unemployed, ill, or on a low income receive some money
(benefit) provided by the government.

2.5.6 Complete each sentence taking the beginning from part A.


and the end from part B. Fill in the grid. Make up a short
text about government spending:

A. B.
1. If tax revenues are higher than a. for private sector
government spending (b) investment.
2. If, on the contrary, government b. a country has a budget
expenditures exceed money collected surplus.
by taxes, (h) c. almost inevitably leads to
3. A structural surplus or deficit is the inflation.
result of government policies such as d. and Treasury bonds in the
(j) USA.
4. A cyclical surplus or deficit is the e. and use it as an argument
result of the business cycle (g) against Keynesian fiscal
5. Budget deficits have to be funded by policies.
the sale of government bonds, called f. can raise output and
gilt-edged securities in Britain, (d) investment, at least in the
6. The higher the amount of short term.
government bonds sold in a country, g. and changes in spending
the less capital is available (a) or revenues caused by a
7. Neo-classical economists call this boom or a slump.
“crowding out”, (e) h. a country has a budget
8. On the other hand, if the money deficit.
supply is expanded, increased i. produces a greater
54
government spending (f) increased demand for
9. This is partly due to the acceleration capital goods.
principle, which is that increased j. tax rates, welfare and
demand for consumer goods (i) defense spending, and so
10. But of course everybody knows that on.
increasing the money supply (c)

1 2 3 4 5 6 7 8 9 10
B H J G D A E F I C

2.5.8 a. Look through the excerpt below and complete its sentences
by inserting one of the following words/word combinations in
the spaces provided. Fill in the grid.

A substantially reduce F is considered desirable


B have singled out G requires
C clearly estimate H decline substantially
D facilitate I should remain
E should finance J raises revenue

In recent years economists have singled out (1) some of the desired
features of a nation’s tax system that should emerge as countries
develop. The economic studies distinguish the following features:

Concentration of revenue sources


A system that raises revenue (2) from a restricted number of taxes
and rates may substantially reduce (3) administration and
compliance expenses1. Avoidance of numerous taxes may also
facilitate (4) the assessment of the effects of policy changes and avoid
an impression of excessive taxation.

Broad and objectively defined tax bases

1
Administration expenses- расходы, связанные со сбором налогов.
Compliance expenses- расходы, связанные с обеспечением соблюдения налогового законодательства.

55
A broad tax base with limited exemptions enables revenue to be raised
with relatively low rates. Substantial erosion of the tax base via
exemptions requires (5) much higher rates to achieve a given amount
of revenue. Tax bases should be defined so as to ensure that producers
and consumers can clearly estimate (6) their tax liability while
planning their activities.

Minimization of collection lags


In an inflationary environment the actual value of tax receipts may
decline substantially (7) when there are long lags in payments. High
penalties are necessary to ensure that legal delays are not compounded
by delinquency lags.
Tax neutrality
The tax system should finance (8) government operations with the
least cost and disturbance to the patterns of production, and the
generation and use of income. Consequently, neutrality of the tax
system is considered desirable (9) in the sense that distortions in
incentives should be limited unless there are compelling reasons to
discourage the production, consumption or trade of a particular
commodity. The activity, most profitable before tax, should remain
(10) most attractive after tax.

1 2 3 4 5 6 7 8 9 10
B J A D G C H E F I

b. Supply the paragraphs with the suitable titles. There is one


extra title:
a. Tax neutrality.
b. Concentration of revenue sources.
c. Minimization of collection lags.
d. Broad and objectively defined tax bases.
e. Tax incentives.

2.5.10 a. Read the passage below. Replace the Russian words and
phrases by suitable English equivalents in the
appropriate form. Master the facts:

56
1. Define a tax incentive.
2. How do tax breaks help home buyers?
3. Why does the federal government provide tax incentives?
4. The tax incentive that allows individuals to deduct interest
payments from their taxable income benefits many Americans.
List and explain three benefits to the economy from this tax
incentive.
5. How were tax incentives and tax rates changed by the tax reform?
Tax Incentives
Much of the debate over taxes (касаться) concerns tax incentives.
A tax incentive, sometimes called a tax break, is a law that (снижать
налоги) decreses taxes for a certain group of people or a certain
activity. One widely used (налоговый стимул) tax incentive helps
people buy homes. People do not have to pay tax on the money spent
to pay for (процент по ссуде) interest on a loan to buy a home. By
allowing (налоговые вычеты) a tax deduction for the interest
payments, the government makes buying a home less expensive.
The government uses tax incentives (стимулировать) to
incourage certain types of economic activity. People can (требовать
льготы) claim deductions for contributing to churches or charities,
by investing in housing for low-income residents, and by saving
money for retirement.
The income on which a person pays taxes is his or her
(налогооблагаемый доход) taxable income. (Налогооблагаемый
доход) Taxable income is the individual's total income minus
deductions. Tax incentives have their (издержки) costs as well as
(выгода) benefits. With many tax breaks available, two individuals
with similar incomes could pay very different amounts of tax.
(Недовольство) Complaints about tax incentives led Congress
and the President to pass a sweeping reform of the income tax laws.
The aim of the reform was to spread (налоговое бремя) tax burden
more fairly among taxpayers. The government (ликвидировать)
eliminated hundreds of tax incentives. The reform also lowered
(налоговые ставки) tax rates. The highest (налоговая ставка) tax
rate for individuals was 50 percent. Businesses, like individuals,
(находиться под воздействием) were affected by the reform. The

57
highest (налоговая ставка) tax rate for businesses was 46 percent.
Then the highest rate was 34 percent. Despite (снижение налоговых
ставок) the decline in tax rates, total tax revenues from business
were expected to increase slightly because of the loss of deductions.
Many corporate leaders supported the reform law. They believed
that reform would cause businesses (вкладывать деньги) to invest
their money more efficiently. Economic decisions would be made
based on the market rather than the influence of taxes.
b. Find words or word combinations in the text that mean the
following.
deduction the process of taking away an amount from a total, or
the amount that is taken away
tax break a special reduction in taxes that the government
allows for a particular purpose
tax burden particular costs such as taxes or interest payments
seen as a problem, especially when they are high
something which is used to encourage people,
incentive especially to make them work harder, produce more
or spend more money
tax rate the part of your income or the part of the price of
something that you pay in tax
the amount of income used as a basis to calculate tax
taxable income after taking away allowances, deductions etc. from
gross income

2.5.11 Say it in English:

1. облагать обязательными налогами to impose compulsory levies


2. вклад в объединение всех налогов the contribution to the general
revenue pool
3. являться общим обязательством to represent a general obligation
налогоплательщиков of taxpayers
4. использовать налоговый рычаг в to use the tax instrument as a
качестве способа получения дохода revenue raising device
5. способствовать полной занятости, to promote full employment,
стабильности денежной системы и monetary stability and a
удовлетворительному уровню satisfactory rate of economic
58
экономического роста growth
6. превышать доход правительства to exceed government revenue
7. проводить пересмотренный и to pass a revised budget
исправленный бюджет
8. принимать дефицитный бюджет to adopt a deficit budget
9. оказывать инфляционное воздействие to have an inflationary effect on
на экономику the economy
10. расходы,санкционированные expenditures authorized under a
национальным бюджетом national budget
11. безвозмездные социальные выплаты transfers to individuals and
физическим лицам и коммерческим commercial companies
компаниям
12. облагать налогом одни виды to tax some activities and
деятельности и субсидировать другие subsidize others through
посредством инвестиционных investment credits
налоговых кредитов
13. предоставлять безвозмездные ссуды или to award grants or tax concessions
налоговые уступки
14. отреагировать резким сокращением to respond by severe
определённых программ в области contractions of particular
государственных расходов programs of public expenditure
15. включать в себя нераспределённый to include an unallocated
резерв на покрытие дополнительных reserve to cover all additions
расходов (additional expenses)
16. отчёт об обследовании государственных Public Expenditure Survey
расходов
17. приёмы по снижению затрат (экономии cost-cutting exercises
средств)
18. увеличивать национальный долг в 4 раза to quadruple the national debt
19. расходы, связанные со сбором налогов и administration and compliance
обеспечением соблюдения налогового expenses
законодательства
20. ограниченное освобождение от налогов limited exemption
21. налог должен быть определённым, а не the tax ought to be certain not
произвольным arbitrary
22. предоставить возможность для соблазнаto offer a temptation to
не платить налоги smuggling
23. налогооблагаемый доход taxable income
24. налоговый стимул; налоговая льгота tax incentive (tax break, tax
deduction)
25. провести радикальную реформу законов to pass a sweeping reform of
о подоходном налоге the income tax laws

59
26. распределять налоговое бремя to spread the tax burden
27. снижение налоговых ставок the decline in tax rates
28. выплачивать налог на регулярной to pay at a regular term
основе
29. подвергаться частым визитам to be subject to the frequent
сборщиков налогов visits of tax collectors (tax
gatherers)
30. налог на товары, которые не считаются luxury tax
необходимыми для широких масс

2.6. DIALOGUE 1
Read and translate the following dialogue: Managing Public
Funds
Task 1. Report the dialogue. Use the following reporting verbs:

 to inform  to clarify
 to stress  to mention
 to confirm  to make it clear
 to explain  to finalize the matter

Task 2. Work with a partner. Look at the dialogue and discuss


what A. and B. say about the following subjects.

Task 3. Say it in English:


A.
1. It’s impossible to overestimate the importance of a good,
balanced budget.
2. to spend money according to the budget’s plan
3. to include all activities of government bodies on formation,
consideration, approval and execution of the budget
4. to be responsible for drawing up the budget
to be responsible for budget planning in the federal government
to be responsible for budget consideration and approval
to be liable for the preparation and execution of the budget (в этот
пункт можно включить несколько выражений об
«ответственности»)

60
5. the Accounts Chamber, established by the Federal Assembly
6. the Federal Treasury System
7. the managing public funds (and budgetary process)
8. “Green Paper” (consultative documents set out for public
discussion of government proposals)
9. to be at a formative stage
10. to prepare the yearly budget of the region’s spending and income
11. to set up separate divisions to handle public funds
12. the Treasury headed by the Chancellor of the Exchequer
13. Select committees of the House of Commons
14. to report the results of one’s examination to Parliament
15. (The Controller and Auditor General, an officer of the House of
Commons) appointed by the Crown (Queen)
16. to exercise the audit through the functions of the Controller and
Auditor General
17. (to submit to the Treasury) public expenditure estimates
18. the Public Accounts Committee
19. revenue estimates
20. to submit some amendments to the draft budget
21. officer
22. budgetary process

Task 4. Look back at Dialogue 2.6. Produce your own dialogue


about the significance of the budget using Supporting materials.
Search the Internet to find further information about the
budgetary process. Make a full use of the underlined helpful
phrases from Dialogue 1.

DIALOGUE 2: Corporate and personal taxation


Part A. Read and translate the following dialogue.

Task 1. Report the dialogue. Use the following reporting verbs:

 to ask for  to support the idea of


 to agree  to add

61
 to emphasize  to bring up the subject of …
 to express regret for  to single out the main points of

 to give details of  to conclude
something

Task 2. Say it in English:


1. value added tax
2. indirect / hidden tax
3. gift tax
4. taxes on net worth
5. to bear the ultimate burden of taxes
6. estate tax (death duty)
7. corporate (corporation) income tax
8. sales tax
9. to be all ears
10. personal (individual) income tax
11. inheritance tax
12. excise tax
13. direct tax
14. death duty (inheritance tax)
15. tax revenue / tax income

Task 2. Comment on the principle due to which taxes are


classified into:
Direct taxes Indirect taxes

Part B. Read and translate the dialogue (continued).

Task 1. Say it in English:


1. capital transfer tax
2. proportional tax
3. stamp duty
4. capital gains tax (CGT)
62
5. progressive tax
6. tax brackets
7. regressive tax
8. ad valorem excise (tax, duty)

Task 2. Comment on the principle due to which taxes are


classified into:

progressive regressive proportional

Task 3. Report the dialogue. Use the following reporting verbs:

 to acknowledge  to try to find out whether


 to admit  to apologize for something
 to believe  to remark
 to conclude  to offer
 to agree  to suggest that ...

Task 4. Work with a partner. Look at the dialogue and discuss


what A. and B. say about the following subjects.

Task 5. Use Supporting Materials to continue the dialogue about


taxation. Search the Internet to find some information
about different types of taxes in the Russian Federation.
Make use of helpful phrases from Dialogue 2:
Supporting Materials
Cross the incorrect words to complete each sentence:
The tax on wages and salaries (and business profits in the US) is
called (direct tax / income tax / wealth tax). In Britain the tax on
business profits is called corporation tax. A tax that is levied at a
higher rate on higher incomes is called a (progressive / regressive /
value-added ) tax. Property taxes1, sales taxes, customs duties on
imports, and excise duties on tobacco, alcoholic drinks, petrol, etc. are
(direct / indirect / value-added) taxes. Most sales taxes are slightly
1
поимущественный налог; налог на недвижимое имущество

63
(progressive / regressive / repressive) because poorer people need to
spend a larger proportion of their income on consumption than the
rich. A sales tax collected at each stage of production, excluding the
already - taxed costs from previous stages, is called a (sales / value-
added / added-value) tax. Profits made from the sale of assets are
liable to a (capital gains / capital transfer / wealth) tax. Gifts and
inheritances are usually liable to (capital gains / capital transfer /
wealth) tax. Reducing the amount of tax you pay to a legal minimum
is called (fiscal policy / tax avoidance1 / tax evasion2). Making false
declarations is called (creative accounting / tax avoidance / tax
evasion) and is obviously illegal. Bringing forward capital expenditure
(on new factories, machines, and so on) so that at the end of the year
all the profits have been used up is known as making a (mistake / tax
haven3 / tax loss). Multinational companies often set up their head
offices in low-tax countries such as Liechtenstein, Monaco, the
Cayman Islands, and the Bahamas, known as (tax havens / tax
heavens / tax shelters). Criminal multinationals such as the Mafia tend
to pass money through a series of companies in very complicated
transactions in order to disguise its origin from tax inspectors and the
police; this is known as (cleaning /laundering/ washing) money.

Task 6. Discuss the following quotations. Say:


a) what you believe the statement means;
b) whether you agree or disagree with the statement;
c) explore possible relationships between the statements.

Task 7. Say it in English:

In developped countries taxes are the dominent part of budget


revenues of all levels. They amount to 80-90% in the central budget
income, and in the USA they constitute (account for) more than 95%.
Tax specific share (unit weight, specific weight) in the budgets of the
members of the federation and local authorities accounts for more than
1
“избежание” налогов: снижение суммы выплачиваемых налогов законными средствами.
2
уклонение от уплаты налогов: сознательное сокрытие или занижение суммы дохода, облагаемого
налогами; обман налоговых властей.
3
налоговое убежище (фискальный оазис): страна или территория, которые привлекают иностранных юр.
и физ. лиц низким уровнем налогов.

64
50%. Either the constitution or special laws assign (fix) specified
taxes to the appropriate (relevant / corresponding) dudget. As a rule,
personal income taxes and corporation taxes, customs duties, universal
excise, i.e. such taxes which are of great fiscal and economic
importance (significance) enter the central budgets. These taxes are
called state or public. Taxes of federated members and local
authorities are considered (to be) local.
Up-to-date (actual / current / up to date / modern / up-dated / state-of-
the-art / present-day) tax system of developped includes direct and
indirect (hidden) taxes. Fees to the Social Insurance Fund, used
according to their strictly-intended purpose, are specifically ranked in
it. Among direct taxes personal income tax and corporate income tax
have decisive (crusial) fiscal sense (meaning). Income tax, one of the
most important direct personal taxes, is levied from the personal
income. Net payer’s income, i.e. gross income (revenue) reduced for
the sum of deductions and tax concessions authorised by the law, is
liable to the income tax. They are untaxed (non-taxable) minimum,
family discounts (discount / rebate / reduction / abatement /
allowance) children discounts, fees to the Social Insurance Fund, etc.
Income tax from the employed (working) people is levied at source,
i.e. by the account(s) department of the enterprise where they get their
salaries (wages). At the end of the financial (fiscal) year (On the
expiry of the financial year) all taxpayers present their tax return
where they calculate (estimate / figure / rate / reckon) their due tax by
themselves to the fiscal authorities. The second significant tax in
terms of meaning is corporate income tax (corporation tax). Legal
entities are imposed to pay it according to the tax return. Taxable
profit equals profit reduced by the sum of authorised deductions and
tax remissions. Discounts and deductions reduce the company’s
taxable profit by 40-60%. Capital gains tax, inheritance tax and gift
tax, propety tax, capitation tax (poll-tax / capitation tax / head tax /
poll tax) and some others effect (are in force) among direct taxes.
There are 3 types of indirect (hidden) taxes: excises (imposed on
goods and services of private enterprises), fiscal monopoly taxes
(imposed on consumer goods produced by public sector (government
sector / state sector), customs duties (on export and import goods and
services). Universal excise which nowadays exists (is in force /

65
effects) in many countries in the form of value-added tax is the most
widespread tax among indirect taxes. The object imposed with VAT is
the part of product cost added at every stage of production
(manufacturing) or circulation.
Fees to the Social Insurance Fund are special payments made (effected
/ executed) by individuals and legal entities to the state. They are used
in order to render social services to the population (the general
public). They act as direct special-purpose (target) tax for employees,
and they are a peculiar (singular) kind of indirect tax for legal entities.

2.7 Reading for Cross-cultural Associations

a. Read the text below.


a. Draw a parallel between the United Kingdom, the USA and
the Russian Federation to cover the points in the following
chart. Surf the Internet for keywords the national budget, the
US Congress, the British Parliament, the government of the
Russian Federation, Autumn Statement, White Paper, the
Financial Statement and Budget Report, the Public Expenditure
Survey.

2.8 CASE STUDY & ROLE PLAY 1


Case 1
Case Analysis

Step 1. Single out the main facts of the proposed text. Present
them in a short review.
Step 2. Clarify the Issue.

Role Play 1
Enact a press conference with the representatives of the US
government.

Make use of the helpful phrases.

Your decision.

66
CASE STUDY & ROLE PLAY 2
Case 2
Analyzing the Case Study
Step 1. Clarify the Issue
Step 2. Evaluate Costs and Benefits
Step 3. Make a Decision

ROLE PLAY 2
Enact the conversation between Phil Gramm, Warren Rudman,
Ernest Hollings and their opponents in Congress: Alex Blunder,
Henry Barker and Tom Douglas (the member of the Court).

Make use of the helpful phrases.


Your decision.
1.9 GRAMMAR BACK UP
Review of Conditionals
Exercise 2.9.1
Put the verbs in brackets into the correct tenses:

1. If the advising bank provided (to provide) us with the


beneficiary’s full address, we’d be able to dispose of the funds.
2. If you authorize (to authorize) us to release the documents free of
payment, we’ll close our files.
3. The auditors will check (to check) the profit Statement, the
Balance Sheet and the Directors’ Report if the books and records
for the period under consideration are supplied by the accounts
department.
4. If the Wentworth Mattress Company owned shares in Harper &
Grant Ltd., this would be shown (to show) as a trade investment in
Wentworth’s Balance Sheet.
5. You would have saved the company from an even bigger loss if
you had discovered (to discover) a fiddle earlier.
6. If the staff of H & G Ltd. need (to need) some paint, they will buy
the latter on a sale or return basis and pay for it each quarter.
7. If you had asked (ask) me, I would have helped you.
67
8. The cashier will total up (to total up) the value of the checks, will
come (to come) to the Company Secretary, William Buckhurst, for
a company cheque for the same sum and then will go (to go) to the
bank if we cash cheques for staff as a service.
9. The bank normally requires about 7 days’ notice of the intention
to withdraw money from a deposit account, but unless there
is (to be) a heavy demand for money they are not likely to insist
on this.
10. If money is tight, the aggregate demand will fall (to fall), because
people and business buy less, as they have less money.
11. When money is tight, the exchange rate will probably rise
(to rise), if there is (to be) the same demand but less money, or if
there is (to be) higher demand as foreigners take advantage of the
higher interest rate to invest in the currency.
12. If the central bank had changed the reserve requirement last year, it
would have reduced (to reduce) the reserves available to commercial
banks.

Exercise 2.9.2
Finish these sentences, using the correct tenses:

1. If the central bank sold short-term government bonds ... .


2. If money supply in the circulation decreases ... .
3. If you investigate the matter as soon as possible ... .
4. He would become the member of the Board of Directors if ... .
5. If you had asked your chief’s permission ... .
6. If you had not withdrawn all the money from your account last
week ... .
7. I should have ordered to buy more shares if ... .
8. If you had listened to his original instructions ... .
9. If the auditors arrive while I am out ... .
10. If William Buckhurst hadn’t been Company Secretary ... .

Exercise 2.9.3
Translate into English. Use the first, second or third conditional.

68
1. If the global economic crisis didn’t start, my bank wouldn’t go
bankrupt last year, and I wouldn’t lose my job.
2. If you didn’t put all your funds at that bank, you wouldn’t lose all
your savings 5 years ago.
3. If the commercial banks didn’t buy government bonds in the 90s,
many of them would be able to avoid going bankrupt.
4. We would be very grateful if you confirmed the receipt of the
above mentioned letter, send from the Head Office on the 10th of June.
5. We would highly appreciate your answer by tested telex if you
sent it as soon as possible.
6. If your original instructions had been received 10 days ago, the
goods would have been shipped yesterday in accordance with the
shipping documents.
7. We would have provided the above mentioned amount at the
disposal of our client immediately if we had had his full address as
well as the name of the local bank with which the client held his
account.
8. If I knew that he would call at our bank tomorrow in order to
receive funds, I wouldn’t go to his office today.
9. If you had told us some days ago that the original Bill of Lading had
had to be sent by the next airmail, we would have sent it without
any delay by return mail.
10. We will debit the subject account (the account under consideration
/ the account in question) according to your telegrafic instructions
if they have an authorized signature.
11. If you agree to these terms and conditions, we will credit the
remittance to your account at the Bank for Foreign Economic
Affairs.
12. If you didn’t withdraw your money from the deposit account a few
weeks before the end of your deposit, you wouldn’t lose interest.
13. If the new President makes sweeping reforms in the organization
of the company, he will be able to restore the financial soundness of
Taiwan’s branch.
14. The Chief Auditor would have finished tonight if William
Buckherst could have explained 15 pound difference between the

69
amount paid in and the amount drawn out which Mr. Brent noticed
in the bank statement of account (the bank account statement).

Exercise 2.9.4
Analyse and translate these sentences into Russian paying
attention to the conditionals:

1. Никто никогда не говорил ему, что если бы платеж был


просрочен на 7 дней, он мог бы считать контракт
недействительным, и они могли бы принять его или отказаться от
него. Министр сделал бы кое-какие замечания, если бы это не
был любимый проект Президента.
2. Фрейзер опасался, что если не наложить (ввести)
ограничения на японцев, поток импорта будет увеличиваться до
тех пор, пока японцы не исчерпают (израсходуют / используют
полностью) свои мощности по экспорту легковых автомобилей.
3. Постарайтесь выяснить, как сделка будет проходить и что
случилось бы, если бы вы были не в состоянии продать туфли.
4. Как банк импортера, так и банк экспортера будут вовлечены
в осуществление (организацию / урегулирование) платежей, если
используется аккредитив или переводной вексель.
5. Если Вы будете вести себя подобающим образом, я обещаю,
что как только закончат их фотографировать, я дам все эти
приспособления Вам.
6. Сейчас мексиканцы требуют, чтобы ответственность за
контракт была поделена из-за проблем в страховании.
Ассоциация страховщиков "Ллойд" ("Лондонский Ллойд") не
будет покрывать весь риск целиком, если будет вовлечена только
одна компания.
7. Он стал расслабляться впервые в тот день и начал рисовать
в своём воображении (представлять / фантазировать / мечтать о
том) то, что он смог бы сделать, если бы эти 10 миллионов
долларов внезапно стали бы его.

70
8. Если аудиторский отдел работает вместе с руководством
над проектом, тогда аудиторы понимают уникальные
характеристики операций вашего подразделения (учреждения).
9. Если сертификат потеряется, регистрационное бюро
(чиновник-регистратор) выпустит (выдаст) дубликат при
внесении оплаты в виде взноса. Дубликат может использоваться
для тех же самых целей, что и оригинал.
10. Банковские кассиры знали, что будет дополнительный
пересчет наличности прежде, чем они уйдут сегодня вечером, и
запасы наличности в хранилище тоже будут проверены.
Бухгалтеров поросят остаться до тех пор, пока их записи не будут
зарегистрированы и сопоставлены. Старшему управляющему
составу повезет, если они уйдут к полуночи.
11. Эти услуги могут также быть предоставлены (выполнены)
собственным экспортным отделом поставщиков, если у них есть
опыт.
12. Поэтому (по этой причине / вследствие этого) мексиканское
правительство настаивало на том, чтобы контракт был поделен с
международной строительной компанией, приемлемой для
Ассоциации страховщиков "Ллойд" ("Лондонский Ллойд"), если
юридические документы должны были быть подписаны к
полудню, предельный срок, следующего дня. (… окончательный
срок подписания документов – полдень следующего дня)
13. Если бы компания МИЕ-Тайвань должна была снизить их
цены значительно, она также могла бы конкурировать в этой
текущей (современной) ценовой войне.
14. Даже используя преимущество возможностей
международной экспансии, взгляды Ганнет в 1999 году
оставались сфокусированы на достоверности (доверии /
правдоподобии) и были посвящены местным новостям и их
сообществам.
15. Если клиент решит ответить (отреагировать) после того, как
аудиторы выпустят отчет, клиенту следует объяснить, как
полученные данные, указанные в отчете, будут рассмотрены.

71
16. Если бы такие меры не были успешны, Фрейзер поддержал
бы тарифы и квоты.
17. В тот вечер Эдуардо обедал уединенно с его старшими
советниками, которые сами уже работали с официальными
представителями министра. Сейчас каждый из них (советников)
представлял ежедневный отчет о проблемах, с которыми они
столкнулись бы, если бы работали в Нигерии.
18. Конечно, любой кредитор, такой как банк, запросит копию
меморандума компании, если деньги заимствованы компанией.
Она выдаст свой собственный чек на имущество и полномочия
компании, чтобы заверить, что она может заимствовать денежные
средства и, если это подходит, выдавать закладные и
предоставлять гарантии. Если это не соответствует имуществу и
полномочиям компании, она может попросить акционеров
компании поменять их прежде, чем он ссудит деньги компании.
19. Если списание со счета окажется слишком большим, что
могло быть намерением с самого начала, часть его может быть
возмещена позже, напрямую добавляясь к прибыли.
20. Согласно Мистеру Витман даже в сегодняшней сложной,
запутанной ситуации счета компании расскажут опытным
аналитикам большую часть того, что им нужно знать. Это могло
бы быть правдой даже для компании Энрон, если бы люди
проявили интерес.
21. Допустим, что пенсионный фонд имеет активы стоимостью
в 100 миллионов долларов на текущем рынке. Если бы активы
состояли полностью из акций, фонд был бы гораздо рискованнее,
чем если бы они являлись казначейскими облигациями. К тому
же счета просто бы регистрировали эти 100 миллионов долларов,
не предоставляя никакой информации об уровне риска.
22. Активы пенсионного фонда используются в качестве
обеспечения, чтобы заверить, что есть достаточно денег для
выплаты пенсионерам. Обеспечение было бы нужно только. Если
фирма не имела бы достаточно денег, чтобы удовлетворить ее
законные обязательства по пенсионным выплатам. Скорее всего
это может происходить во времена экономического спада,
72
который мог бы совпасть с низкой стоимостью акций. Таким
образом, если бы активы пенсионного фонда были в акциях,
особенно в собственных акциях фирмы, обеспечение было бы
наименее ценным, как раз когда оно было бы нужно больше
всего.
Exercise 2.9.5
CONTEXT
Read the text below. In most of the lines 2-28 there is one wrong
word or word combination. Some lines, however, are correct.
 If a line is correct, put a tick () in the space in the right-hand
column.
 If there is a mistake in the line, write the correct word in the
right-hand column.
1 A letter of credit is one of the ways of financing .....…
2 international trade. The foreign buyer transfers money from ........
3 its his bank to a corresponding correspondent bank in the ..........
4 exporter’s country. The latter than advises the exporter that a ..........
5 letter of credit is available when it he presents a bill of ..........
6 lading, a commercial invoice, and an insurance certificate. A ..........
7 bill of lading is a document prepared by the shipowner or his ..........
8 agent which who acknowledges that the commodities have ..........
9 been received on board the ship. The other possibility is to ..........
10 pay by a bill of exchange, e.g. a British manufacture ..........
11 receives an order from the Argentina and produces the ..........
12 goods. After arranging the insurance, the producer will ..........
13 deliver the goods to the port, with the invoice and a bill of ..........
14 lading, to be loaded onto a ship. When the commodities are ..........
15 been shipped on board, the ship’s master signs and reverts ..........
16 the bill of lading to the producer. The exporter will drew ..........
17 draw up a bill of exchange requiring the buyer pays to pay a ..........
18 particular sum of money on an agreed date, and present the ..........
19 bill to a London corresponding correspondent bank of the ..........
20 buyer’s bank. The London bank accepts a bill of exchange ..........
21 for the same amount and sends the bill of lading and the bill ..........

73
22 of exchange to the Argentine. When the documents arrive to ..........
23 Argentina, they will be given to the importing company .........
24 when it accepts the original bill of exchange. When the ship ……
25 reaches it’s its port of destination, the importer presents all ……
26 the documents to the owner of the ship, and collects the ……
27 merchandise. In case the goods will do not arrive, the buyer ……
28 will have to make an insurance claim. Finally, on the agreed
date, the importer honours the bill of exchange.

3 Auditing
DEVELOPING VOCABULARY

3.2.1. Consult a dictionary and practise the pronunciation of the


following words and word combinations, quote the sentences in
which they are used in the text or submit the examples of your
own:
according to different criteria [ə'kɔːdɪŋ] [tuː] (полная форма) /
[tə] (редуцированная форма,
употр. перед согласными)
['dɪf(ə)r(ə)nt] [kraɪ'tɪərɪə]
as the fieldwork progresses [æz] / [əz ] [ðiː] (полная форма);
[ðɪ] (редуцированная форма,
употр. перед гласными), [ðə]
['fiːldwɜːk] ['prəugresɪz]
avoid disrupting ongoing [ə'vɔɪd] [dɪs'rʌptɪŋ] ['ɔnˌgəuɪŋ]
activities [æk'tɪvətɪz]
collaborative [kə'læb(ə)rətɪv]
comment on internal audit ['kɔment] [ɔn] [ɪn'tɜːn(ə)l] ['ɔːdɪt]
performance [pə'fɔːmən(t)s]
completeness, accuracy and [kəm'pliːtnəs] ['ækjərəsɪ] [ænd] /
reliability [ənd] [rɪˌlaɪə'bɪlətɪ]
completion [kəm'pliːʃ(ə)n]
compliance with the law [kəm'plaɪən(t)s] [wɪð] [ðiː]
(полная форма); [ðɪ]
74
(редуцированная форма, употр.
перед гласными), [ðə] [lɔː]
cooperative [kəu'ɔp(ə)rətɪv]
deviations from procedure [ˌdiːvɪ'eɪʃ(ə)nz] [frɔm] / [frəm]
[prə'siːʤə]
disclosure of financial woes [dɪs'kləuʒə] [ɔv] / [əv]
[faɪ'nænʃ(ə)l] [wəuz]
dispute audit [dɪs'pjuːt ] / ['dɪspjuːt] ['ɔːdɪt]
efficacious [ˌefɪ'keɪʃəs]
efficacy ['efɪkəsɪ]
efficiency [ɪ'fɪʃ(ə)n(t)sɪ ], [ə-]
elaborate on [ɪ'læb(ə)reɪt] [ɔn]
endanger the existence of the [ɪn'deɪnʤə ], [en-][ðiː] (полная
organisation форма); [ðɪ] (редуцированная
форма, употр. перед гласными)
[ɪg'zɪst(ə)n(t)s] / [eg-], [ɪk'sɪs- ] /
[ek-]-] [ɔv] (полная форма) / [əv]
(редуцированная форма) [ðɪ]
(редуцированная форма, употр.
перед гласными)
[ˌɔːg(ə)naɪ'zeɪʃ(ə)n]
entity subject to audit ['entɪtɪ] ['sʌbʤekt] [tu]
(редуцированная форма, употр.
перед гласными) ['ɔːdɪt]
inherent risk [ɪn'her(ə)nt] [rɪsk]
issue subpoenas ['ɪʃuː ] / ['ɪsjuː] [səb'piːnə]
medium ['miːdɪəm]
original report recipients [ə'rɪʤ(ə)n(ə)l] [rɪ'pɔːt] [rɪ'sɪpɪənts]
prior to issuance of the final ['praɪə] [tu] (редуцированная
report форма, употр. перед гласными)
['ɪʃuən(t)s ], [-sjuə-] [ɔv] (полная
форма) / [əv] (редуцированная
форма) [ðiː] (полная форма) /
[ðə] (редуцированная форма,
употр. перед согласными)
['faɪn(ə)l] [rɪ'pɔːt]
75
procedure [prə'siːʤə]
statutory ['stætjət(ə)rɪ]
synopsis [sɪ'nɔpsɪs]
terse public statement [tɜːs] ['pʌblɪk] ['steɪtmənt]
usual routine ['juːʒ(ə)l] [ruː'tiːn]
variety of tools and techniques [və'raɪətɪ] [ɔv] (полная форма) /
[əv] (редуцированная форма)
[tuːlz] [ænd] (полная форма) /
[ənd] [tek'niːks]
veracity [və'ræsətɪ]
viability [ˌvaɪə'bɪlətɪ]
voluntary ['vɔlənt(ə)rɪ]

3.2.2 Match the English word combinations in the left-hand


column with the Russian equivalents in the right-hand column:

1. endanger the existence of A поставить под угрозу


the organization subject to существование фирмы, в
audit которой производится аудит
2. breaches of the law articles B нарушение юридических статей
of association or statutes устава акционерного общества
3. checking for completeness, C проверка полноты, точности и
accuracy and reliability достоверности (предоставления
данных)
4. deviations from standard D отклонение / отступление от
operating procedures общепринятых методов работы
5. avoid disrupting ongoing E избегать нарушения привычного
activities течения дел
6. evaluate existing controls F оценить существующую систему
контроля
7. communicate the scope G сообщать о содержании и целях
and objectives of the audit аудита
8. conclude with a list of H закончить (аудиторское
significant findings заключение) перечнем основных
фактов, вскрытых аудиторской
проверкой
76
9. prepare a draft of the audit I подготовить проект
report аудиторского отчета
10. perform the procedures in J выполнить действия,
the audit program предусмотренные программой
проведения аудиторской
проверки
11. respond to the audit K отреагировать на факты,
findings prior to issuance вскрытые проверкой, еще до
of the final report опубликования итогового
аудиторского заключения
12. include an implementation L включать в себя график
timetable выполнения (реализации)
13. Internal Audit's self- M программа самооценки в рамках
evaluation program внутреннего аудита
14. to resolve the audit report N устранить недостатки,
findings выявленные аудиторской
проверкой
15. continued exposure to the O постоянное предоставление
organisation in question информации организации, в
которой проводится аудиторская
проверка
16. determine the best method P определить лучший способ
of resolving the finding устранения недостатков

Scanning
3.4.2 Scan the text to determine whether these statements are true
(T) or false (F), and if they are false say why:
e.g. In my opinion it is true that ... . / I’m afraid it is false that ...
because ...

1. Financial audits fall into several types according to legal criteria,


T nature of audit, its objective, entity subject to audit, and the time
of audit.
2. Financial statements of corporations with the number of
F employees from 50 to 500, partnerships (more than 5,000
employees), cooperatives, specific industries (banks, insurance
companies, hospitals, etc.) are subject only to voluntary audits.

77
3. There are matters in the course of the audit which the auditor must
T lay before the legal representatives of the company.
4. Client involvement is banned at any stage of the audit process in
F order to avoid disrupting ongoing activities.
5. Internal auditors are looking for deviations from standard
T operating procedures and evaluating completeness, accuracy and
reliability.
6. The group of internal auditors works to reach an agreement on the
T audit findings in the course of the meeting with the management
team at which they discuss the findings, recommendations, and
text of the draft of the report.
7. The client has the opportunity to respond to the audit findings only
F with a decision not to implement an audit recommendation and to
accept the risks associated with an audit finding.
8. Internal Audit prints and distributes the final report and releases
F the report outside of the organisation.
9. The fact that auditors ask clients to comment on Internal Audit's
T performance has proven to be very helpful to auditors because
thus they can make changes in their procedures due to clients'
suggestions.
10. The client response letter is reviewed and the actions taken that all
F unresolved findings are tested to ensure the desired results.
11. Follow-up reviews to verify the resolution of the report findings
F are practiced at random.
12. In spite of the fact that auditors are appointed by a company's
T board of directors, their choice has to be ratified by the
stockholders at the Annual General Meeting.

3.5 PRACTICE

Language focus
3.5.1 Match the following terms with the correct definition on the
right and write your answers in the grid below:

1. accounts A what a company has to prepare every


year for presentation to its owners and to

78
the relevant authorities
2. external audit B examination of the books and financial
records of a company carried out by an
independent auditor
3. internal audit C the review of a company’s accounting
records carried out by a department
inside the company
4. statutory audit D required by law
5. compliance test E this checks that controls are operating
efficiently
6. production F work with the least possible waste
efficiency (production without waste)
7. auditor G accountant who examines a firm’s
accounts
8. auditing H official process of checking the accounts
of a company to see if they represent a
true picture
9. fraud I making money by not telling the truth
10. hidden J not declared, is not clear
11. ledger K book in which accounts are written
12. management L financial information (sales, costs,
accounts profits, cash flow, etc.) prepared for
managers
13. Annual General M this is the meeting which is held once a
Meeting (AGM) year for the shareholders
14. quality controllers N employees who are responsible for
seeing that the finished goods are well
made
15. adjust O

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
F N K A O B G C D E J I L M H

79
3.5.2. Fill in the gaps to complete the passage choosing from the
words in the box. The first one has been done for you. Use
the grid below:

A company E value I independent


B auditors F annual J audit
C requirement G shares K public
D depreciate H accounts L check

An official examination, the audit, is made of the accounts of a


business; this is usually done once each year. (1) Independent
auditors descend on a (2) company and examine all the company’s (3)
accounts for the previous year; this is known colloquially, as
“checking the books “.
The (4) auditors attempt to reconcile all the bank statements, checking
them against the receipts and invoices. They (5) check all the
company’s stocks; if the value of any of them has decreased during
the year, they write down its (6) value to a realistic one – many items
(7) depreciate with time and use. Although VAT returns have to be
submitted to the Customs and Excise authorities every three months,
they are checked again during the (8) audit.
A public company – one of which the (9) shares are quoted on the
Stock Exchange – must lodge its accounts in Companies House,
where they are available to the (10) public, and to possible investors.
The (11) annual audit is a legal (12) requirement in Britain; many
professional firms of accountants only do this work and do not need to
undertake any other type of work.

1 2 3 4 5 6 7 8 9 10 11 12
I A H B L E D J G K F C

Skills focus

80
3.5.3 Read the text. Translate the Russian word combinations
into English. Speak on the auditing activities:

(1) Auditors are professionally responsible for (auditing) of entities,


especially audits of (annual financial statements) of economic
(entities) and reporting upon the carrying out and results of such
audits.
(2) Auditors are permitted (to consult) and represent their clients in
tax matters within the limits of existing regulations.
(3) Auditors may act as experts in the area of (management /
managerial accounting) insofar as such (activities) are compatible with
their oath of professional conduct.

3.5.4 Supply the following passages with the appropriate


headings. Use the grid below:

Guidelines for Professional Practice


a. Responsibility
b. Objectivity
c. Diligence
d. Publications, advertising prohibition
e. Unethical activities
f. Independence and freedom from influence
g. Professional behaviour
h. Secrecy

1. Independence and freedom from influence


In arriving at his conclusions, opinions and decisions the auditor must
be free from influences, connections and concerns, which would
undermine his independence and freedom from influence. He must
decline any activities, which put his independence in danger or where
he no longer feels independent. This is the case even if legal
requirements concerning the choice of statutory auditor have been
met.
The auditor must also decline an assignment if there are reasonable
grounds for concern that he may not be inwardly independent.

81
2. Diligence
In carrying out his duties the auditor must comply with the law and
professional rules and exercise due diligence. In this respect he must
be guided by principles of trust and due care.

3. Responsibility
The auditor is responsible for his own actions. Such responsibility
requires that he forms his own opinion and makes his own decision.
He must be in a position to supervise and judge the activities of
employees to the extent that he can come to conclusions based on his
own knowledge and convictions. Within the limits of the tasks
assigned to him the qualified accountant who is a salaried employee
also has to act in a responsible manner. A person who, as
representative with signatory powers or employee with signatory
powers, has clearly defined instructions committing him to sign audit
reports and valuations the contents of which he does not agree with,
does not act in a responsible manner. Instructions containing such
requirements are not permitted.

4. Secrecy
The qualified auditor must keep his knowledge of matters and
conditions which become known to him through his professional
practice confidential and he may not either use such knowledge for his
own purposes or publish them without permission. The same is true
for members of supervisory bodies of auditing companies appointed
by law, articles of association or company statutes. The qualified
auditor is responsible for committing his assistants and employees to
secrecy in writing, insofar as they are not bound to secrecy by law.

5. Objectivity
The qualified auditor must assemble all material facts needed for
drawing audit conclusions and preparing reports and such conclusions
and descriptions may be made from the facts alone. In this respect he
must maintain his objectivity. With respect to opinions prepared for
the courts and public bodies, together with arbitration reports or

82
similar tasks, the opinions of both sides are also to be described and
weighed against each other.

6. Professional behaviour
The qualified auditor must behave in such a manner as to obtain the
particular trust of the public and maintain the trust granted to him by
his clients. This is also true for his actions outside his professional
duties. In dealing with other qualified auditors he is to behave in a
manner suitable amongst colleagues.

7. Unethical activities
The qualified auditor, as a member of a free profession, must reject all
activities which endanger the maintenance of his professional duties
or damage the respect or reputation of the profession. He may neither
be involved in commercial activities nor undertake tasks which
endanger his own responsibility or which are not permitted by law.
Auditing and consulting activities in the field of finance and taxation
together with trust activities are the business activities of the
profession and thus the areas of professional activity of the qualified
auditor. Legal advice is included in this area.
8. Publications, advertising prohibition
Qualified auditors are required to maintain professional conduct with
respect to publications. Advertising is forbidden.

1 2 3 4 5 6 7 8
F C A H B G E D

3.5.5 Say it in English:


 Diligence
 Unethical activities
 Undermine independence and freedom from influence
 To decline the activities / the assignment
 Statutory audit
 Reasonable grounds for concern
 To comply with the law
83
 To exercise due diligence
 Based on one’s own knowledge and convictions
 Employee with signatory powers
 Instructions committing smb to sign smth

3.6 Dialogue

Supplement 1

Supplement 2
Task 1. Supply the missing parts of the following unqualified
audit reports both in Russian and in English:

Unqualified Audit Report Аудиторское заключение без


оговорок
Auditors’ report to the
shareholders of XYZ Plc
Мы провели аудиторскую
проверку бухгалтерской
отчетности, приведенной на
страницах с … по … , которая
была подготовлена на основе
первоначальной стоимости
(измененной при переоценке
некоторых видов долгосрочных
необоротных активов) и учетной
политики, изложенной на
странице … .
Respective responsibilities of
directors and auditors
As described on page … the
company’s directors are
responsible for the preparation of
the financial statements. It is our
responsibility to form an
independent opinion, based on

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our audit, on those statements
and to report our opinion to you.
Основа для мнения
Мы провели нашу аудиторскую
проверку в соответствии с
Аудиторскими стандартами,
изданными Бюро аудиторской
практики. Аудит включает
проверку на основе проведения
тестов, доказательств,
относящихся к суммам и к их
представлению в бухгалтерской
отчетности. Он также включает
оценку значительных расчетов и
суждений, сделанных
директорами при подготовке
финансовой отчетности, а также
того, насколько учетная
политика подходит для
конкретных обстоятельств
компании, насколько
последовательно она
применялась и насколько
адекватно она раскрыта.
Opinion
In our opinion the financial
statements give a true and fair
view of the state of the
company’s affairs as at 31
December 20XX and of its profit
[loss] for the year then ended and
have been properly prepared in
accordance with the Companies
Act 1985.
Registered Auditors Зарегистрированные аудиторы
Date Дата
Address Адрес

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Task 2. (p. 214) Say it in English:
1. To be properly prepared
2. in accordance with the Companies Act
3. give a true and fair view of the state of the company’s affairs
4. the company’s directors are responsible for the preparation of the
financial statements
5. an opinion, based on audit
6. In our opinion ...
7. the state of the company’s affairs as at 31 December 20XX
8. company’s profit [loss] for the year then ended
9. to report one’s opinion to smb
10. to form an independent opinion

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