Final answer:
The treasurer of a large corporation is responsible for managing the company's external financial activities including liquidity, investments, and risk management. Whereas, the controller's responsibilities lie in internal financial management, overseeing accounting operations, ensuring accurate financial reporting, managing budgets, and adhering to tax laws and regulations. These distinct financial roles highlight the significance of accurate financial management and reporting as part of corporate governance.
Step-by-step explanation:
The responsibilities of the treasurer and the controller in a large corporation differ significantly, each focusing on separate yet vital aspects of financial management. The treasurer typically handles the corporation's external financial activities. This includes the responsibility for corporate liquidity, investments, and risk management. They oversee the management of the company's financial resources, dealing with capital raising through debt or equity, maintaining banking relationships, and also directing the investment of surplus funds.
On the other hand, the controller, also known as the comptroller, is responsible for the company's internal financial management. Their duties revolve around accounting, which includes overseeing the accounting department, ensuring accurate financial reporting, managing the budget, and ensuring compliance with tax laws and regulations. The controller may also be involved in preparing financial reports for regulatory bodies and handling audits, both internal and external, to ensure the reliability of financial information.
The distinction between these roles has become increasingly significant as the scope of financial management and corporate governance has expanded. For instance, the Legislature and voters have expanded the comptroller's responsibilities in Texas to include the administration of the Texas Lottery, oversight of the Property Tax Board, and handling duties previously managed by the state treasurer and State Energy Conservation Office. In cases such as Lehman Brothers, the failure in corporate governance showed the importance of having accurate financial information which would be the result of work done by the controller, emphasizing the importance of these roles in a company.