Financial audit

Financial audit

A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion. The audit opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is to enhance the degree of confidence of intended users in the financial statements.

Financial audits are typically performed by firms of practicing accountants who are experts in financial reporting. The financial audit is one of many assurance functions provided by accounting firms. Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors.

Internationally, the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB) is considered as the benchmark for audit process. Almost all jurisdictions require auditors to follow the ISA or a local variation of the ISA.

Financial audits exist to add credibility to the implied assertion by an organization's management that its financial statements fairly represent the organization's position and performance to the firm's stakeholders. The principal stakeholders of a company are typically its shareholders, but other parties such as tax authorities, banks, regulators, suppliers, customers and employees may also have an interest in ensuring that the financial statements are accurate. The audit is designed to increase the possibility that a material misstatement is detected by audit procedures. A misstatement is defined as false or missing information, whether caused by fraud (including deliberate misstatement) or error. "Material" is very broadly defined as being large enough or important enough to cause stakeholders to alter their decisions. Audits exist because they add value through easing the cost of information asymmetry, not because they are required by law (note: audits are obligatory in many EU-member states).

Economic liberalism

Economic liberalism is the ideological belief in giving all people economic freedom, and as such granting people with more basis to control their own lives and make their own mistakes. It is an economic philosophy that supports and promotes individual liberty and choice in economic matters and private property in the means of production. Although economic liberalism can be supportive of government regulation to a certain degree, it tends to oppose government intervention in the free market when it inhibits free trade and open competition, however it can also lead to the support of government intervention in order to remove private monopoly, as this limits the liberty of the poor. Economic liberalism emphasizes that people should make their own choices with their money, so long as it doesn't infringe on the liberty of others.

Economic liberalism opposes economic planning as an alternative to the market mechanism. Economic liberalism contrasts with social liberalism as well as other economic orders such as mercantilism, state capitalism, socialism, market socialism, and fascist economics (Corporatism).

Economic liberalism opposes government intervention on the grounds that the state often serves dominant business interests, distorting the market to their favor and thus leading to inefficient outcomes. Ordoliberalism and various schools of social liberalism based on classical liberalism include a broader role for the state, but do not seek to replace private enterprise and the free-market with public enterprise and economic planning. For example, a social market economy is a largely free-market economy based on a free price system and private property, and includes government regulation to promote competitive markets and social welfare programs to address social inequalities that result from free-market outcomes. Economic liberalism also includes support for equality of opportunity (also known as social mobility), due to the belief that a lack of equality of opportunity will lead to an increase in private monopoly and therefore infringed liberty of individuals.

Theories in support of economic liberalism were developed in the Enlightenment, and believed to be first fully formulated by Adam Smith, which advocates minimal interference of government in a market economy, though it does not necessarily oppose the state's provision of a few basic public goods with what constitutes public goods originally being seen as very limited in scope.  Smith claimed that if everyone is left to their own economic devices instead of being controlled by the state, then the result would be a harmonious and more equal society of ever-increasing prosperity. This underpinned the move towards a capitalist economic system in the late 18th century, and the subsequent demise of the mercantilist system.

Private property and individual contracts form the basis of classical economic liberalism. The early theory was based on the assumption that the economic actions of individuals are largely based on self-interest (invisible hand), and that allowing them to act without any restrictions will produce the best results (spontaneous order), provided that at least minimum standards of public information and justice exist, e.g., no-one should be allowed to coerce or steal.

While economic liberalism favors markets unfettered by the government, it maintains that the state has a legitimate role in providing public goods. For instance, Adam Smith argued that the state has a role in providing roads, canals, schools and bridges that cannot be efficiently implemented by private entities. However, he preferred that these goods should be paid proportionally to their consumption (e.g. putting a toll). In addition, he advocated retaliatory tariffs to bring about free trade, and copyrights and patents to encourage innovation. Robert Cox's further research highlighted the importance of innovation and its deeper implications on the free market.

Initially, the economic liberalism had to contend with the supporters of feudal privileges for the wealthy, aristocratic traditions and the rights of kings to run national economies in their own personal interests. By the end of the 19th century and the beginning of the 20th, these were largely defeated.

Today, economic liberalism is associated with social liberalism, classical liberalism, "neoliberalism", "propertarian" libertarianism, and some schools of conservatism.

Operations management

Operations management is an area of management concerned with overseeing, designing, controlling the process of production and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services). The relationship of operations management to senior management in commercial contexts can be compared to the relationship of line officers to highest-level senior officers in military science. The highest-level officers shape the strategy and revise it over time, while the line officers make tactical decisions in support of carrying out the strategy. In business as in military affairs, the boundaries between levels are not always distinct; tactical information dynamically informs strategy, and individual people often move between roles over time.

According to the U.S. Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing. Operations management programs typically include instruction in principles of general management, manufacturing and production systems, plant management, equipment maintenance management, production control, industrial labor relations and skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.Management, including operations management, is like engineering in that it blends art with applied science. People skills, creativity, rational analysis, and knowledge of technology are all required for success.

Indonesian cuisine

Indonesian cuisine is diverse, in part because Indonesia is composed of approximately 6,000 populated islands.  Many regional cuisines exist, often based upon cultural and foreign influences. Indonesian cuisine varies greatly by region and has many different influences.

Throughout its history, Indonesia has been involved in trade due to its location and natural resources. Additionally, Indonesia’s indigenous techniques and ingredients were influenced by India, the Middle East, China, and finally Europe. Spanish and Portuguese traders brought New World produce even before the Dutch came to colonize most of the archipelago. The Indonesian islands The Moluccas (Maluku), which are famed as "the Spice Islands", also contributed to the introduction of native spices, such as cloves and nutmeg, to Indonesian and global cuisine.

Some popular Indonesian dishes such as nasi goreng, gado-gado, sate, and soto are ubiquitous in the country and considered as Indonesian national dishes.

Sumatran cuisine, for example, often has Middle Eastern and Indian influences, featuring curried meat and vegetables such as gulai and kari, while Javanese cuisine is more indigenous. The cuisines of Eastern Indonesia are similar to Polynesian and Melanesian cuisine. Elements of Chinese cuisine can be seen in Indonesian cuisine: items such as bakmi (noodles), bakso (meat or fish balls), and lumpia (spring rolls) have been completely assimilated.

Some popular dishes that originated in Indonesia are now common across much of Southeast Asia. Indonesian dishes such as satay, beef rendang, and sambal are also favoured in Malaysia and Singapore. Soy-based dishes, such as variations of tofu (tahu) and tempe, are also very popular. Tempe is regarded as a Javanese invention, a local adaptation of soy-based food fermentation and production. Another fermented food is oncom, similar in some ways to tempe but using a variety of bases (not only soy), created by different fungi, and particularly popular in West Java.

Indonesian meals are commonly eaten with the combination of a spoon in the right hand and fork in the left hand (to push the food onto the spoon), although in many parts of the country, such as West Java and West Sumatra, it is also common to eat with one's hands. In restaurants or households that commonly use bare hands to eat, like in seafood foodstalls, traditional Sundanese and Minangkabau restaurants, or East Javanese pecel lele (fried catfish with sambal) and ayam goreng (fried chicken) food stalls, they usually serve kobokan, a bowl of tap water with a slice of lime in it to give a fresh scent. This bowl of water should not to be consumed, however; it is used to wash one's hand before and after eating. Eating with chopsticks is generally only found in food stalls or restaurants serving Indonesian adaptations of Chinese cuisine, such as bakmie or mie ayam (chicken noodle) with pangsit (wonton), mie goreng (fried noodles), and kwetiau goreng (fried flat rice noodles).