Department Managers And Management Controls Establishing and maintaining an internal control structure is an important management responsibility. To provide reasonable assurance that an entity's objectives will be achieved, the internal control structure should be under ongoing supervision by management to determine that it is operating as intended and that it is modified as appropriate for changes in conditions. In addition, to setting up good management control systems, managers should periodically review their systems to ensure they are working. Table 1 provides a checklist of what their systems should include. Budget justification data is consistent with other accounting data so that managers compare actual results with budgeted amounts.
Employees promptly record and classify transactions.
Only persons acting within the scope of their authority authorize and carry out significant actions. Supervisors have separated key duties and responsibilities in authorizing, processing, recording, and reviewing Employees receive appropriate supervision of their work. Supervisors assign accountability for custody and use of resources. Access to resources and records is limited to authorized individuals. Periodic inventories of assets are performed.