Essay --

Related to this Management Project numerous specialized academic articles and literature has been read to gain profound insight and comprehensive knowledge about the field of research as well as elucidate theoretical facts of this project. In addition, relevant literature was collected to build a theoretical foundation to answer the Research questions stated above. Controlling Nowadays ‘Controlling’ is a frequently used phrase in any business and is a derivation of ‘to (be in) control’ (Oxford University Press, 2014). Especially these days with a quickly changing, rough business environment it is of crucial importance to monitor and audit companies’ internal processes. The basic management function of ‘Controlling’ is to (1) establish benchmarks or standards, (2) compare actual performance against them, and (3) take corrective action, if required (Oxford University Press, 2014). According to the University of Louisiana (2008), Controls are any actions taken by the management to increase the likelihood that established goals and objectives are achieved. Internal Control Within hospitality operations managers need accurate and always current information, provided by management accounting systems, to be able to carry out their duties effectively. These information will be used by the executives to implement new procedures and for decision making to enhance the efficiency of operations, to safeguard assets, to drive sales as well as maximizing the profitability of the business (Chibili, 2010). The American Institute of Certified Public Accountants, called AICPA, has defined ‘Internal Controls’ as, â€Å"Internal control comprises the plan of organization and all of the coordinate methods adopted within a business to safeguard its asset... ...well as regulations of an organization (Chibili, 2010). Control activities can be of different types. They are classified as directive, preventative or detective. Directive controls are those designed to establish desired outcomes; preventative controls are designed to prevent errors, irregularities or undesirable events from occurring; and detective controls are those designed to detect and correct undesirable events which have occurred. Directive control activities These are activities designed to guide a business towards appointed desired outcomes. For the most part directive controls are shaped in the form of written procedures, guidelines, policies, laws and regulations. (State University of New York - New Paltz, 2005) Furthermore internal training seminars, meetings as well as job descriptions outline a directive control force. (University of Louisina, 2008)