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Controlling

Controlling involves establishing standards, measuring performance against those standards, and taking corrective actions when needed. It is important for creating quality, adapting to change, speeding up processes, adding value, and enabling teamwork. Effective control systems identify key performance areas, strategic control points, use financial reports like the balance sheet, income statement, and cash flow statement, implement budgets, and conduct audits both internally and externally.

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32 views

Controlling

Controlling involves establishing standards, measuring performance against those standards, and taking corrective actions when needed. It is important for creating quality, adapting to change, speeding up processes, adding value, and enabling teamwork. Effective control systems identify key performance areas, strategic control points, use financial reports like the balance sheet, income statement, and cash flow statement, implement budgets, and conduct audits both internally and externally.

Uploaded by

Armiee Infinite
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Controlling

The process of ensuring that actual


activities conform to planned activities.
Steps in The control Process

1. Establish standards and methods for measuring performance


2. Measuring the performance
3. Determine whether the performance matches the standard.
4. Take corrective actions
Why Control is Needed

1. To create better quality

2. To cope with change

3. To create faster cycles

4. To add value

5. To facilitate delegation and teamwork


Designing Control Systems

1. Identifying key performance areas (or key result areas)-


Aspect of a unit or organization that must function effectively if
the entire unit or organization is to succeed.
2. Identify strategic control points in a system at which
monitoring or collecting information should occur.
Financial Controls

1. Balance Sheet – Description of the organization in terms of


its assets, liabilities, and net worth at a particular point in time.
2. Income Statement - Summary of the organization’s
performance over a given interval of time ( loss or gain)
3. Cash Flow – Statement of sources and uses of funds.
Budgets

Formal quantitative statements of


resources allocated for activities over
stipulated periods of time.
Audit – The process of appraisal

To much of the general public, the term audit is associated with


detecting fraud. Although the discovery of fraud, is, in fact, one
important facet of auditing, it is far from the only one.

Auditing has many important uses, from validating the honesty


and fairness of financial statements to providing a critical basis
for management decisions.

External / Internal audits

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