Respose to the following:
Controlling is a function of management and is an integral part of the overall method of managing operations. As such, it is the duty of managers at all levels of the organization to:
1- Recognize and estimate the exposures to lose or risk, which relate to their particular field of practice.
2- Designate and establish policies, plans, and operating standards, procedures, systems, and other disciplines to be used to minimize, mitigate, and limit the risks associated with the exposures identified.
3- Set practical controlling processes that require and encourage directors, officers, and employees to carry out their duties and responsibilities in the most professional manner.
4- Keep the effectiveness of the controlling processes they have established and foster continuous improvement to these processes.
Corrective controls are formulated to correct errors or risks and prevent the recurrence of further mistakes. They begin when unwanted outcomes are identified and keep the focus on the problem until management can solve the problem or correct the defect.
These are some examples of corrective controls; quality teams that address ongoing problems to correct processes, close supervision, and management review, including reviewing cost center reports.
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