Part 1
Organizational control is the process through which an association influences its members and subunits to perform in ways that facilitate the achievement of corporate objectives and goals (Carpenter, Bauer, & Erdogan, 2018). When appropriately designed, the controls bring about better performance as it enhances effective strategy implementation.
The six organizational control areas are cultural, human resource, structural, financial control, informational area and physical area. Physical area control comprises of inventory management that ensures the inventory levels are on the check (Carpenter, Bauer, & Erdogan, 2018). The other component is the equipment controls which assist in the supervision of equipment in the organization such as computer use. Quality control, on the other hand, ensures that customers get satisfying quality services.
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Human resource control entails monitoring the labor force or human resource of the organization to ensure that staffs remain of a high profile. Whereas information area controls include competition analyses, sales forecasts, and working schedules (Carpenter, Bauer, & Erdogan, 2018). It leads to development and innovation in the organizations.
Structural control entails organizational hierarchy. The structural arrangements characterize the organization's decentralized control while its formal authority, rules, and regulations are the features presented in the organization. Cultural controls, on the other hand, manipulate values and norms of the culture of the organization that in return affect the performance level and the work procedure of our organization (Carpenter, Bauer, & Erdogan, 2018).
Financial controls influence financial statements, payroll, debt payments and the organization budgets. It ensures that the organization remains financially stable.
Part 2
Financial statements are documents that record the financial activities and conditions of an entity. They consist of four significant components, i.e., income statement, cash flows, balance sheet and statement of retained earnings
The balance sheet gives a summary of the of liabilities, assets and stockholders equity as at a particular date which is generally at the end of a financial year.
Income statement outlines the financial results of the organization as it includes the organization’s expenses, revenues, net income and earnings per share over a given period.
External audit refers to an official verification of financial statements and accounts of an organization by experts from outside while internal audit refers to verification of the financial statements and accounts of an organization by their audit staff.
References
Carpenter, M., Bauer, T. & Erdogan, B. (2018). Principles of Management, v. 1.0: 15.1 Organizational Control. FlatWorld . Retrieved on 5 June 2018, from https://catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch15_s01.
