CHAPTER 7:

CONTROLLING
Applying appropriate control
measures for a specific business
situation
By: Mark Simon P. Macaraeg
Control structures are necessary in
business to ensure that
procedures are followed and
goals achieved.
 An individual control structure reflects
policies and procedures for the specific
organization and takes into accounts such
factors as the financial health of the
business, compliance with external
regulations and company
communication.
 There are five basic control
structures to help organizations
identify strengths as well as
pinpoint areas for improvement.
 FIVE BASIC CONTROL
STRUCTURE
• ENVIRONMENT
• AUDIT
• COMMUNICATION
• RISKS
• CONTROL ACTIVITIES
 ENVIRONMENT
The most important control structure in any
business is the overall environment.
Whether highly formal or relaxed, the
environment of a business must be well
planned and communicated within the
company.
 AUDIT
An important control structure is a periodic
audit. Whether performed by a department
within the organization or contracted to an
outside vendor, audits ensure that employees
are following company policies and that
procedures are appropriately set in place and
understood.
 COMMUNICATION
Communication is a crucial element
of control structure in any
organization. Each business must
impart information to employees.
 RISKS
Risks assessment is an essential control
structure. Legal and financial risks to a
company can be catastrophic. A business
needs to determine potential situations in
these areas and what actions will be taken if
a case develops.
 CONTROL ACTIVITIES
Control activities ensure the policies and
procedures that might impact financial and
legal risks are understood and followed.
Control activities will vary in scope and
priority depending on the individual
organization and the industry in which it
participates.
These five basic control structures given and the
other measures out there must always be applied
appropriately and legally with full honesty and
respect. So that employees will be more hard
working and be more dedicated to their work.
Through that, your business will be more
productive and successful.