Internal Control/Internal Audit

We recognize risk management and compliance as one of our most important managerial issues, and stipulate the Internal Control Policy.
In addition, regarding the internal control under the Financial Instruments and Exchange Act, respective 49 domestic and overseas subsidiaries and the Internal Audit Department made an evaluation of internal control for the fiscal year ended March 31, 2019, in compliance with the basic framework for internal control set forth in the Business Accounting Council’s Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions). We will continuously develop the internal control and make an operational evaluation appropriately, in accordance with relevant standards, in response to changes in the business environment.

■Global compliance structure

In our company, the Internal Audit Department is in charge of the internal audit operation and the overall management operation of the internal control system. The Internal Audit Department conducts an internal audit of the status of operational execution in each division of our group, from the viewpoint of compliance with applicable laws and regulations and the Company’s internal rules, its appropriateness as well as effectiveness and efficiency of business activities, as an independent audit organization. Then, the Internal Audit Department gives advice and proposals for improvement on the basis of the result of the internal audit, confirms the implementation status of improvement measures, and conducts a follow-up audit. It also reports on results of internal audit to President, and the Audit Committee as necessary.
Outside Japan, an Office of the General Manager has been established in each region to oversee and monitor operations, each having an Internal Control Section within it. The Internal Control Section works with the Internal Audit Department and CSR Headquarters to implement policies specific to the local region or country in accordance with local needs and characteristics.
The Internal Audit Department, Audit Committee, and Accounting Auditor work to improve efficiency and effectiveness of audit by regularly holding meetings and exchanging information and opinions about the policy, plans, and results of audit.