How the changing role of the board will affect controllers

Article Abstract:

Controllers are beginning to take a more active role in keeping boards of directors informed as to the board's success in meeting various accountability, conduct and effectiveness responsibilities, as a result of changes in the business world with respect to the decline in the public's confidence in U.S. businesses. Apparently, the larger the corporation, the less it is trusted by the general public. Consequently, controllers and other managerial accounting positions must emphasize their governance responsibilities to promote public trust. To properly assess the governance responsibilities of the board (and how well the board is performing in relation to these duties), controllers should : (1) define the governance responsibilities, separate from management duties, (2) assess governance in the areas of hierarchy and organization, use of company resources, and compliance with environmental rules and regulations, and audit the effectiveness of the board in meeting these governance objectives. Auditing as opposed to evaluating, assessments of accountability of board members, criteria for accountability, open versus closed management systems, governance versus management, planning around risks and uncertainties, and making effective changes in board governance procedures are discussed in detail. These dichotomies are examined to show the ways in which controllership is veering away from the strictly logical and practical applications of management into the more intuitive and qualitative areas of governance.

Executives, Powers and duties, Corporate officers

---

A CEO's view of the controller

Article Abstract:

In an address before a conference co-sponsored by the National Association of Accountants and the Society of Management Accountants of Canada, Daniel C. Ferguson, chief executive officer of Newell Company, called upon managerial accountants to strive to become controllers, rather than comptrollers. According to Ferguson, a comptroller merely records and reports financial data, while a controller provides management to business areas that are performing below expectations or running over budget. These are the aspects of control, the controller's job. Controllers should not concern themselves with long-term financial questions, as these comprise the duties of the chief financial officer; controllers should, however, keep current on all operational revenues and expenses. Other controller responsibilities are identified, and the proper image for a controller is described. To be successful, a controller should seek employment with a company that places profitability as its uppermost goal. Ferguson also speaks out in favor of variable budgets, measuring profitability in terms of return on investment, and the promotion of chief financial officers to chief executive officers.

Speeches, lectures and essays, transcript, Society of Management Accountants of Canada, Ferguson, Daniel C.

---

Cost accounting for the '90s

Article Abstract:

New cost accounting methods will have to be developed within the next five to ten years if accountants are to remain responsive to technological innovations that have improved data collection and processing, manufacturing processes and deregulated service industries. This was the primary message delivered to 250 accountants and financial managers attending the 1986 convention of the National Association of Accountants in Boston. The possibility of accountants working closely with production engineers to develop new cost accounting systems was also discussed. The prospects for the accounting industry given innovative management techniques, such as zero inventory (or just-in-time) techniques, are also examined, along with the need for new accounting rules and regulations.

High technology industry, Accounting and auditing, Boston

Similar abstracts:

• Abstracts: How the new tax law affects mergers and acquisitions. Corporate tax issues
• Abstracts: The four-stage model of cost systems design. Activity-based information: a blueprint for world-class management accounting
• Abstracts: Activity-based costing at Cal Electronic Circuits. The anatomy of an effective HMO cost management system. Developing a pricing system for a small business
• Abstracts: Perceptual and archival measures of Miles and Snow's strategic types: a comprehensive assessment of reliability and validity
• Abstracts: Relationship of career mentoring and socioeconomic origin to managers' and professionals' early career progress

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.