Concept of Controllership:
There is no precise concept of controllership as it is still in an evolutionary state. Even if the concept was possible of being described, it cannot be said that, wherever a controller is in existence, he exercises all the functions that a theoretical controller is expected to do because the real meaning of the term is dependent upon the agreement between him and the undertaking the seeks to serve. However, the controllers’ Institute of America has drafted a seven-point concept of modern controllership. The hallmarks of the concept are:
i. To establish, coordinate and administer, as an integral part of management, an adequate plan for the control of operations. Such a plan would provide, to the extent required in the business, for profit planning, programs for capital investing and financing, sales forecast, expense budgets and cost standards, together with the necessary procedure to effectuate the plan.
ii. To compare performance with operating plans and standards and to report and interpret the results of operations to all levels of management and to the owners of business. This function includes the formulation and administration of accounting policy and the compilation of statistical records and special reports as required.
iii. To consult with all segments of management responsible for policy or action concerning any phase of the operations of business as it relates to the attainment of objectives and the effectiveness of policies, organization structure and procedures.
iv. To administer tax policies and procedures.
v. To supervise and coordinate the preparation of reports to governmental agencies.
vi. To assure fiscal protection to the assets of the business through adequate internal control and proper insurance coverage.
vii. To continuously appraise economic and social forces and government influences and interpret their effect on business.
The controllers’ Institute, as well as the National Industrial conference Board of the United States, have spelt out the functions of the controller in still greater detail but the seven-point concept of modern controllership is board enough to leave no phase of policy or organization beyond the controller’s jurisdiction. Through the concept has been laid down mainly from the functional point of view, it lifts the notion of controllership from pedestrian paper-shuffling to a top-management attitude that aids decision – making, it broadens controller’s outlook and provides him with specific goals.