Read the following paragraph and write down the words in blue next to their explanations. Huge losses experienced by investors and employees due to mismanagement and irregularities in financial reporting have led to a demand for stricter corporate governance. Independent auditors such as the SEC (Securities and Exchange Commission) in the US have been checking balance sheets , which show the overall performance of companies and income statements or profit and loss accounts which show the difference between total income and outgoings for a given period. 1 _________________: the process of producing statements that disclose an organization ’ s financial status to management, investors and the government 2 _________________: a financial statement that summarizes a company ’ s assets, liabilities and shareholders ’ equity at a specific point in time 3 _________________: a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year 4 _________________: an amount of money that is spent regularly 5 _________________: someone whose job is to officially examine a company ’ s financial records 6 _________________: the process of managing something badly or wrongly 7 _________________: something that is not correct or acceptable