Phases of the control function
Knowledge of standards
The first stage of the control process is to know all the measures that have been considered appropriate to the activity under control, which will be called standards.
Cost standards
Monetary measures determined by the amount of the costs of the various activities
Income standards
Expected monetary value of sales of goods and services
Control Technics
Budget
The budget is the result of planning expressed in numerical terms, is the plan quantified.
This document is one of the most effective instruments of control available to the company.
The most used are those of sales revenue and expenses in different operations.
Statistics
Useful and generally applicable tool that managers have to anticipate future business figures
Allows historical data processing certain piece of reality or a certain situation and make inferences from such processing on the future behavior of the data.
Breakeven analysis.
It is the development of a graph where the intersection is where the expenses are equal to revenues, there is no profit or loss.
From that point there are benefits and to that extent is this zone of losses as sales would not reach to cover expenses for their own production and marketing.
Audits
Internal audit or performance audit is a procedure that allows regular and ongoing evaluation of accounting information system and financial operations of the company
The company can carry out various audits of financial and accounting.
The external audit is one that is done outside the company independent professionals in order to satisfy all users of financial information, and includes examining the information provided by the accounting for the purpose of issuing a technical opinion on the same.
The specific tasks that normally address the internal auditors to exercise control aspects are verified:
- Check the reliability and integrity of financial information and the means used to identify, evaluate, classify and communicate that information.
- Check established systems to ensure they are in accordance with policies, plans, procedures, rules and regulations that could have a significant effect on operations and reports, determining whether the organization is applying.
- Check established means of safeguarding assets and verifying its existence.
- Assess the economy and efficiency with which resources are employed.
- Analyze the operations and programs to ascertain whether results are consistent with established objectives and goals and whether the operations and programs are carried out as planned.
An audit can be distinguished:
A subject
- Freelancer.
- Other enterprise
An object
- The financial statements of the company
- The management of the company
An action
- Critical of the financial statements, where not only limited to the simple verification of what appears on the accounting information Review.
- The examination of all the rules, whatever their category, which the company has designed according to your planning.
One goal:
- Issue an opinion or opinion on the reviewed financial information.
- Provide an assessment of the problems hindering the achievement of the goals set by the company.
Analysis
To make the comparison between the results actually incurred and forecasts expected in standards.
Anticipatory Control
This is checked before that deviations occur
Correcting deviations
The aim of surveillance is to detect errors, but try to avoid them in the future and fix as soon as possible.
The analysis derived control may require new designs all the activities of the administration, starting with planning and through the organization and management.
There are two types of generic causes of deviations:
- No tasks actually executed as foreseen in the plans and programs of the company
- Plans and programs were poorly designed and looked unattainable goals with the means available.