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As the controller reflected on the information obtained and the important issues being addressed by the EMC subcommittee, the following thoughts and questions surfaced in his mind...

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As the controller reflected on the information obtained and the important issues being ad¬dressed by the EMC subcommittee, the following thoughts and questions surfaced in his mind:

(1) Would operating unit control of our key R&D growth programs enhance or mitigate our chances of meeting our goals?
Operating unit should control the internal R&D as it will have direct accountability and the control on the Research. It will enhance the chances of meeting the goals if it has proper internal control programs. For this internal control programs will play critical role, because without it the results could be chaotic. It should have several internal control programs implemented such as, accounting control systems and administrative controls. An Accounting control system consists of financial records and procedures dealing with cash disbursements, cash receipts, purchase of goods and services, employee payroll, and sales or other rendering of goods and services. Accounting control also has benefits that are to safeguard financial records and prevent the amount of errors as well as protect against fraud. Accounting controls will also help maximize efficiency and minimize waste. Administrative control systems are the procedures that facilitate management and control. Examples of this are departmental budgeting procedures and reports on performance. It helps in achieving the following:
 Effectiveness and efficiency of research and development include the use of the entity's resources.
 Reliability of financial reporting, including reports on budget execution, financial statements, and other reports for internal and external use.
 Compliance with applicable laws and regulations.
A subset of these objectives is the safeguarding of assets. Internal control should be designed to provide reasonable assurance regarding prevention of or prompt detection of unauthorized acquisition, use, or disposition of an agency's assets.

Identify effective internal control techniques
Specific techniques can be in place to appraise any specific procedures of cash, purchases, sales and various other things. Control activities are the policies, procedures, techniques, and mechanisms that enforce management's directives, such as the process of adhering to requirements for budget development and execution. They help ensure that actions are taken to address risks. Control activities are an integral part of an entity's planning, implementing, reviewing, and accountability for organization's resources and achieving effective results. Control activities occur at all levels and functions of the entity.
They include a wide range of diverse activities
. ? Top level reviews of actual performance,
? Reviews by management at the functional or activity level,
? Management of human capital,
? Controls over information processing,
? Physical control over vulnerable assets,
? Establishment and review of performance measures and indicators,
? Segregation of duties,
? Proper execution of transactions and events,
? Accurate and timely recording of transactions and events,
? Access restrictions to and accountability for resources and records, and
? Appropriate documentation of transactions and internal control.
Internal control should ensure ethical conduct by business. Such a culture is rooted in a strong set of core values (or value system) that provides the foundation for employees as to how the organization conducts its business. It also allows an entity to develop an ethical framework that covers (1) fraudulent financial reporting, (2) misappropriation of assets, (3) corruption, as well as other issues. Creating a culture of honesty and high ethics should include the following.

* Setting the tone at the top
* Creating a positive workplace environment
* Hiring and promoting appropriate employees
* Training
* Confirmation
* Discipline

I know there'll be pressure to level off R&D spending across the company, including corporate R&D. We've got to make sure we get more "bang for our R&D buck" in terms of prioritizing those efforts to go after the most promising commercial opportunities if we're going to achieve our goals in biotechnology! How can we be sure we're prioritizing these ...

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"...control charts is essential to study closely the quality of the products coming from each production operation."