Introduction on the Nature of Controls

Politicians and regulators do not run businesses: the remaining parts of this book are for managers/practitioners who do.

There are two reasons why companies should be committed to effective controls,1 if not passionate about them. The first is because it is to everyone’s benefit that businesses create wealth and employment and pay taxes, and to do this they have to run profitably. This means controlling and minimising losses and ensuring that commercial objectives – like sustainable profits – are realised. This is by far the most important reason for effective control.