Types of Controllers

‭ ypes of controllers‬ T ‭W e can distinguish the following types of controllers:‬ ‭-The‬‭involved controller‬‭: The Concerned‬‭controller places‬‭a strong emphasis on‬ ‭his responsibility for supporting management and little pressure on his‬ ‭responsibility for financial administration and internal control.‬ ‭-‬ ‭The‬‭independent controller‬‭: The independent controllers places a high‬ ‭ mphasis on its responsibility for financial administration and internal control,‬ e ‭and a low emphasis on management support.‬ ‭-‬ ‭The Split‬‭controller‬‭: At the divided‬‭controller management‬‭support tasks and‬ r‭ eporting tasks are assigned to two different officers, highlighting the difference‬ ‭between the two responsibilities.‬ ‭-‬ ‭The‬‭strong controller‬‭: At the strong‬‭controller all‬‭r esponsibilities lie with both‬ ‭ anagement support and reliable internal reporting, with balanced attention‬ m ‭being paid to both responsibilities.‬ ‭Controller type‬ ‭Potential benefit for:‬ ‭Potential downside for:‬ ‭Involved controller‬ ‭Contribution to decision-making‬ I‭ndependence‬ ‭reporting‬ ‭Independent controller‬ I‭ndependence‬ ‭reporting‬ ‭Contribution to decision-making‬ ‭Split controller‬ ‭ ontribution to‬ C ‭decision-making,‬ ‭independence reporting‬ ‭Coordination‬ ‭Strong controller‬ ‭ ontribution to‬ C ‭decision-making,‬ ‭independence reporting‬ ‭ inding suitable‬ F ‭people‬ ‭ rganizational position of the controller‬ O ‭In the literature on the position of the controller in the organization, the central question‬ ‭is whether the controller should be a member of the management or a staff officer. In‬ ‭view of the controller's advisory function, some consider it necessary for him to be‬ ‭included in top management, with the portfolio distribution being such that the controller‬ ‭has no management tasks in areas other than those mentioned above. Others argue‬ ‭that the controller cannot be a board member based on the desired separation of‬ ‭administrative tasks and advisory and recording tasks. We consider it more accurate to‬ ‭make a sharp distinction between, on the one hand‬‭Finance Director‬‭who is a member‬ ‭of the Board of Directors and actively participates in decision-making, and on the other‬ ‭hand controller who, as a staff officer, can be present at the decision-making process,‬ ‭ ut fulfills an advisory and informal role. These roles already grant the controller great‬ b ‭authority and influence within the organization. The controller's line powers are then‬ ‭limited to the officials of his own department‬ ‭i‬‭n‬‭the concept of the strong controller and‬ ‭the independent controller, a managerial role belonging to the controller to the‬ ‭administrator. The strong controller can also manage the treasurer. If desired, a‬ ‭combination with the role of information manager suits the limited view of the controller,‬ ‭while this combination fits less well with the strong controller. We have discussed these‬ ‭function combinations sufficiently in the previous paragraphs. We now conclude this‬ ‭chapter with a brief consideration of the role of the controller with regard to the audit‬ ‭function‬‭. The audit is one of the tools available‬‭to the controller to determine‬ ‭compliance with rules, guidelines and procedures, and provides the necessary practical‬ ‭information for an evaluation thereof. Viewed in this way, the audit department can best‬ ‭be placed under the responsibility of the controller. This applies to the information audit,‬ ‭the EDP audit, the special internal control, the quality audit, the environmental audit and‬ ‭the operational audit.‬ I‭n one case, the organizational placement of the audit function under the controller is not‬ ‭appropriate in our opinion. This concerns the situation in which the audit aims at the‬ ‭internal certification of the annual accounts. After all, the device and instruments of the‬ ‭controller are themselves the object of research. This financial audit can therefore best‬ ‭be placed with an Internal Accounting Department, which reports directly to senior‬ ‭management or to an audit committee. In this last constellation it cannot be denied that,‬ ‭especially if the internal accountant is assigned a broader task than the internal‬ ‭certification of the annual accounts, unnecessary duplication may occur. It is therefore‬ ‭recommended that the controller be involved in the design audit programs.‬ ‭ esearch shows that many managers are dissatisfied with the financial function:‬ R ‭managers give their controller an average of 5. Most controllers are not sufficiently‬ ‭aware of this: they give themselves an average of 8 for their performance. In short:‬ ‭there is a clear one mismatch‬‭'‬‭. This mismatch is not sufficiently highlighted in the‬ ‭accountant's management letter. The main cause of the dissatisfaction is the poor‬ ‭quality of the management information provided by the controller and his employees‬ ‭(information may be reliable (Starreveld), but is often not relevant (Tolmodel)).‬