Why have a management control system in a company?

can you please tell me what is it's importance and what purpose it has in a company. thanksWhy have a management control system in a company?
Management controls are important in any company. If I understand your question another term for this is internal controls.





Internal controls are in place to ensure that transactions are properly recorded; that there is a segregation of duties (to lessen the possibility of fraud when one person has too many duties); that the general ledger is free of material errors; that the financial statements are properly presented and free of material errors; to ensure that the company's policies and procedures are not only in place but that they are functioning correctly so that the employees have a clear understanding of what is expected of them and to lessen the possibility that the financial statements are misstated due to fraud and misrepresentation.





In a publicly traded company (one that is traded on the New York Stock Exchange, for example) the management are responsible for the proper management of the company since they answer to the owners of the company - the stockholders. Management also answers to the board of directors, how are also accountable to the stockholders.





I hope that this helps.