Controls should point exceptions at critical points

If controls are to be efficient and effective they must be able to point out exceptions at critical points. Some deviations from standards have little meaning while others have serious effects on performance. The points at which deviations occur are important e.g. a large deviation in costs may be less serious than an unpleasant response from customers or a 5% deviation of labour costs will be more serious than 30% deviation in duplicating or postage. Some points in the organization are critical while others are inconsequential.