The analysis of internal control mechanism for Bio-Tech industry-The case of A corporation

• Main Authors: Yu-Pi Chen, 陳玉碧
• Other Authors: Chiang-Feng Lin
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/53851253273697572429

碩士 === 淡江大學 === 國際貿易學系國際企業學碩士在職專班 === 94 === The bio-tech industry is viewed as the most potential industry. With the development of medical science, we not only have a better standards of living and a longer life span, but also that we put more emphasis on how to maintain a healthy life style. It is also because of these favorable factors that promise a prosperous future for bio-tech industry and make it a rising-star industry. The bio-tech industry features high economic benefit, high technological level, low pollution, and low energy consumption. Innovation is always the priority of this industry. The main outcomes of R&D are the introduction of new application and the enhancement of products’ quality. The R&D expenses in this industry is higher than others industries, therefore the abilities of introducing new technology and developing new products are it’s main competitive edges. However, the long-term accumulation of R&D costs may result in a financial risk for the operation of business. After the Asian financial crisis in 97, the outbreak of several business scandals not only has a negative impact on the overall investing environment and the investors, but highlights the importance of corporate governance for the business. Nowadays the idea of internal control is widely adapted by many businesses. This thesis uses the five controlling factors of internal control: controlling environment, risk evaluation, controlling operation, information & communication, and supervision to analyze the mechanism of internal control in bio-tech and pharmaceutical industries. Last but not least, we also hope the case study may offer some hands-on experience for other bio-tech companies.