Question

Describe each of the five characteristics of effective control and provide an example for each.

Answer 1

The 5 major features of an effective control system are as follows:

• Accuracy – High accuracy must be there in generating data, because these are the factors that help in taking managerial decisions. High priority must be given to genuine and accurate information.

• Timeliness – The timeline for the completion of any task must be maintained in ensuring effective control. If the action has not been taken in the time of requirement, the damage can be serious in many cases.

• Integration of values and culture – Acts of effective control should be able to integrate the corporate values with the work done and ensure harmony in the work setting.

• Economic and strategic feasibility – Any step taken should be analyzed for its economic feasibility. The control measures adopted should also be in alignment with the strategic plan of the firm. If found otherwise, it should be revised to ensure feasibility.

• Corrective actions – Though the control system means checking and defining the deviation, it should also include the corrective actions that can be adopted to solve the issues. It should also emphasize the exceptions and highlight the errors.

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