Budgeting In A Developing Economy

For approximately three years, my colleague, Professor Dinman has been delivering one message to students at the University of Indonesia and throughout the islands. His message is concerned with the field of auditing and the necessity for honest and reliable reports in a modern industrial society. He stresses the importance of accurate information from those who direct economic activity, (the insiders) to those on the outside who have an interest in the results of the activity. These reports therefore are essentially an "accounting “ made to outsiders with a legitimate interest in the enterprise by those who are responsible for accomplishing enterprise goals. These reports are necessary in any type of economic organization, and it is inconceivable that those in charge of any economic order would fail to insist that steps be taken to assure a high degree of accuracy in such statements. The public accounting profession is usually given the responsibility for examining the evidence behind such statements and for assuring outside interests and the general public that the statements are essentially correct