The controller's role in management.
A controller has two apparently contradictory responsibilities: (1) the management service responsibility of ensuring that specialist knowledge and expertise get proper consideration when business decisions and actions are taken, and (2) the custodial and monitoring responsibility of ensuring the accuracy of financial reporting and the integrity of internal control. The apparent contradiction is that the first responsibility requires active involvement in management while the second calls for a sense of independence from affiliated management. Sathe stresses that "strong" controllers overcome this dilemma by developing certain interpersonal skills. Such "strong" controllers thus have access to sensitive information and deliberations in progress--an access that permits them to take before-the-fact actions that stop ill-conceived, ill-advised, or illegal decisions before they are taken. A controller who is not actively involved in decision making is not privy to such information and can exert only after-the-fact or reactive control. However, the costs of operating with a strong controller must be weighed against the potential benefits and compared with the benefits of alternate approaches.
D000288:Administrative Personnel; D005376:Financial Management; D006801:Humans; D012380:Role; D014481:United States