A corporate controller is responsible for providing investors, lenders and other stakeholders with an accurate view of the firm’s financial condition. Controllers ensure that accounting procedures are in place and that internal controls are functioning properly. In order to remain credible, a controller must consistently behave in an ethical manner in both private and professional life. A personal lapse may call the integrity of the financial results into question and shake public confidence in the company.
Professional Competence
Because of the sensitive nature of accounting data, a controller must meet minimum standards of professional competence. She must keep that knowledge up to date by staying abreast of industry developments and enrolling in continuing education classes. In its Statement of Ethical Professional Practice, the Institute of Management Accountants states that controllers have an ethical duty to disclose any professional limitations or deficiencies that may prevent them from performing their job duties effectively.
Due Care
Financial results may be misinterpreted if accounting standards are applied in an improper or inconsistent manner. A controller must exercise due care in the creation of financial statements and the reports that support them. The American Institute of Certified Public Accountants defines due care as a "quest for excellence." This is the standard controllers should strive to attain. Failure to do so may result in misstatements that could damage stakeholder confidence in the firm.
Objectivity
As the person responsible for preparing the financial statements, the controller must be objective. Accounting regulations include hard and fast rules that are used to present results fairly. When these rules are inconsistent with management directives, controllers may face pressure to "cook the books" and present a financial result that is neither fair nor accurate. To be effective, a controller must stand firm against such challenges even at the risk of losing his job.
Integrity
When choosing a controller, senior management must take great care to consider both the personal and professional behavior of candidates. If the controller behaves inappropriately, the firm’s financial results and controls may be called into question. That is why companies like pharmaceutical giant McKesson have adopted specific policies governing the personal behavior of top financial executives, including the controller. A good controller understands this responsibility and strives to behave in an exemplary manner at all times.
