Controllership: The Work of the Managerial Accountant (Controllership)

1178 Pages·2004·14.23 MB·English

by  Janice M. Roehl-Anderson

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C
ONTROLLERSHIP
T W M A
HE ORK OF THE ANAGERIAL CCOUNTANT
S E
EVENTH DITION
JANICE M. ROEHL-ANDERSON
STEVEN M. BRAGG
John Wiley & Sons, Inc.
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C
ONTROLLERSHIP
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C
ONTROLLERSHIP
T W M A
HE ORK OF THE ANAGERIAL CCOUNTANT
S E
EVENTH DITION
JANICE M. ROEHL-ANDERSON
STEVEN M. BRAGG
John Wiley & Sons, Inc.
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ABOUT THE AUTHORS
Janice M. Roehl-Anderson,MBA, is a principal with Deloitte, with over 20 years of consult-
ing experience. She specializes in information systems security; financial and cost accounting
system analysis, design, selection, and implementation; long-range information systems plan-
ning; and information management reviews/audits. She has also worked for US West. In addi-
tion to earning her BA in Business at the University of Washington, and MBA in Accounting
and Information Systems at the University of Southern California, Jan has successfully com-
pleted the CPA exam, and has co-authored over 10 books, including The Controller’s Function:
The Work of the Managerial Accountant.
Steven Bragg, CPA, CMA, CIA, CPIM, has been the chief financial officer or controller of
four companies, as well as a consulting manager at Ernst & Young and auditor at Deloitte. He
received a master’s degree in finance from Bentley College, an MBA from Babson College, and
a Bachelor’s degree in Economics from the University of Maine. He has been the two-time
President of the 10,000-member Colorado Mountain Club, and is an avid alpine skier, moun-
tain biker, and rescue diver. Mr. Bragg resides in Centennial, Colorado. He has written the fol-
lowing books:
Accounting and Finance for Your Small Business (Wiley)
Accounting Best Practices, 3rd Edition (Wiley)
Accounting Reference Desktop (Wiley)
Advanced Accounting Systems (Institute of Internal Auditors)
Business Ratios and Formulas: A Comprehensive Guide (Wiley)
Cost Accounting: A Comprehensive Guide (Wiley)
Design and Maintenance of Accounting Manuals: A Blueprint for Running an Effective and
Efficient Department, 4th Edition (Wiley)
Essentials of Payroll: Management and Accounting (Wiley)
Financial Analysis: A Controller’s Guide (Wiley)
Just-in-Time Accounting: How to Decrease Costs and Increase Efficiency, Second Edition
(Wiley)
Managing Explosive Corporate Growth (Wiley)
Outsourcing: A Guide to...Selecting the Correct Business Unit...Negotiating the Con-
tract...Maintaining Control of the Process (Wiley)
Sales and Operations for Your Small Business (Wiley)
The Controller's Function: The Work of the Managerial Accountant, 2nd Edition (co-authored
with Janice M. Roehl-Anderson, Wiley)
The New CFO Financial Leadership Manual (Wiley)
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ACKNOWLEDGMENTS
With the rapidly changing business environment, it was essential that the material contained in this
volume be accurate, up-to-date, and relevant. Accordingly, in addition to the chapters written or
revised by the two co-authors, these contributing authors, listed alphabetically, wrote or revised the
chapters indicated:
Alan R. Arnold, Manager
Ernst & Young LLP, Irvine, California
Chapter 42, Systems Performance Management
Karen L. Bassett, Manager
Ernst & Young LLP, Denver, Colorado
Chapter 39, Software Testing
E. Edward Bassett III, Senior Systems Security Engineer
Denver Technological Laboratories
Chapter 43, Information Security Systems
Chapter 46, Digital Signatures
Kevin Church, Senior Manager
Deloitte, San Francisco, California
Chapter 51, Organizations Embrace Shared Services—Big and Small
David Drach, Director of Business Analytics
FRx Software Corporation, Denver, Colorado
Chapter 44, Enforcing Information Security Policy
Pak Fong, Senior Manager
Deloitte, San Francisco, California
Chapter 50, How to Implement a Successful CRM Solution
Marty Gold, Senior Manager
Ernst & Young LLP, Denver, Colorado
Chapter 61, Tax Records and Procedures
Susan Hogan, Principal
Deloitte, Atlanta, Georgia
Chapter 51, Organizations Embrace Shared Services—Big and Small
Sara J. Moulton-Reger, e-Business Strategy Consultant
IBM Global Services, Denver, Colorado
Chapter 47, Change Management
Chapter 48, Project Risk Management
Chapter 49, Effective Project Communications
Jill M. Weisbrod, Manager
Ernst & Young LLP, Denver, Colorado
Chapter 39, Software Testing
Tanya Whiteing, Senior Manager
Deloitte, Foster City, California
Chapter 38, Testing Strategies for Financial Systems
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PREFACE
Since the first publication of this book in 1952, the role of the controller has greatly expanded. It
has moved from that of a simple technician who must properly process transactions to a business
executive with a wide-ranging knowledge of total business operations, best practices, and corpo-
rate strategy. To address these changes, Controllershiphas evolved into a comprehensive guide to
accounting management, planning, computer systems, and administration—in short, a repository
for all the skills that a modern controller needs. While the sixth edition addressed such key issues
as the fast close, best practices, information security systems, outsourcing the accounting function,
and software testing, we felt it necessary to issue a new edition that addresses a wide range of addi-
tional topics that have become more important in the last four years. The following new items are
addressed in depth:
•Logic steps for ethics-related decisions
•Summaries of essential GAAP pronouncements
•Cost accounting systems and methodologies
•Throughput costing
•Composition and role of the audit committee
•Taxation strategy
•Business cycle forecasting
•Payroll compensation and tax issues
•Management reporting formats
•Reporting to the Securities and Exchange Commission
•Acquisition due diligence checklists
•Accounting manual preparation and maintenance
These new topics address many of the concerns of the modern controller: what information to
examine during an acquisition due diligence review, how to integrate throughput costing decisions
into the financial analysis toolbox, and how to alter accounting systems to take advantage of taxa-
tion strategies.
Wehave attempted to include in this volume practical commentary on the various aspects of
controllership. Given the growth in complexity and the rapid changes taking place in the many
functions of accounting, we have secured assistance from a number of knowledgeable practitioners
and writers in the relevant fields of endeavor. These contributing authors are identified in the
Acknowledgments section.
In short, the seventh edition of Controllership is the complete business advisor for today’s con-
troller.
Janice M. Roehl-Anderson
Cherry Hills Village, Colorado
Steven M. Bragg
Centennial, Colorado
January 2004
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