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