Administrative Controls have an indirect relationship with financial records. Do you agree with this statement ?

Yes, I agree with the statement that Administrative Controls have an indirect relationship with financial records. Operational controls are those which help in improving the efficiency and productivity of an organisation and not necessarily enter the accounting systems. A number of controls falling under operational controls can also be administrative controls. Examples of such controls are quality control, work standards, periodic reporting, policy appraisal etc. The administrative controls are very wide in their scope and they include all other managerial controls concerned with decision making process. They are concerned with the authorization of transactions and include anything from plan of organization to procedures, record keeping, distribution of authority and the process of decision making. They include controls such as time and motion studies, quality control through inspection, performance budgeting, responsibility accounting and performance evaluation. Accounting controls pertain purely to the accounting system which enter finally in the preparation of financial statements and information which are subject to the expression of opinion by the auditors. Whereas operational controls which can also be termed as administrative controls have an indirect relationship with financial records and the auditor may evaluate only those administrative controls which have a bearing on the financial records.