ABSTRACT
The unifying action of management control benefits the firm by focusing attention on key areas, permitting the effective delegation of authority and facilitating the assessment of individual performance. Adverse information is eliminated as a factual report advances up the management chain. Management control is predominantly a people-based process. The chairman, the board, the chief executive officer (CEO), and senior management are responsible and accountable for the existence of a first class internal control system and its proper functioning. The fact that the risk of malfeasance, including management malfeasance, is so pronounced enlarges the span to be covered by internal control. Management control helps in providing the evidence to rid the organization of a bad CEO. In case of a qualified opinion, which essentially means that the auditor expresses reservations in regard to his findings, recommendations for improvement should be reported to senior management and the board; as well as acted upon in a timely manner.
