Status Of Controller:
There is no fixed place for the controller in the hierarchy of management. It is sometimes said that the status of controller is not ensured simply by virtue of his holding the office but depends, in no small measure, upon hi personality, mental equipment, industrial background and his capacity to convince others of his ability as well as integrity. Moreover, it would depend upon the terms of his appointment and, therefore, it is bound to vary with every individual undertaking. The terms of appointment may be fixed by the Board of Directors or may be included in the Articles of Association of the Company.
As a matter of general principle, all accounting functions, even though remotely connected with finance, are included in the responsibilities of the controller. As the chief accounting authority, the controller normally has his place in the top-level management along with the Treasurer who looks after bank accounts and the safe custody of liquid assets. Usually, the elevation of Controller to the post of Vice-President Finance in taken for granted and is considered only a routine matter.
Modern Controller does not do any controlling, as is commonly understood, in terms of line authority over other departments, his decision regarding the best accounting procedures to be followed by line people are transmitted to the Chief Executive who communicates them by a manual of instructions coming down through line chain of command to all people affected by the procedures.
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