Controls over planning function. Second Fourth Bank set up an independent planning department at corporate headquarters. This department is responsible for most aspects of budgeting (revenue and expense forecasting, profit planning, capital investment). Planning department personnel are responsible to the vice-president for administration. The resulting budgets are incorporated into the control system that the controller's department designed and administered.
Outline an effective control system for the planning department's activities that is, how the firm should evaluate the performance of the planning department.