Internal Control/Internal Audit

Based on the Internal Control Policy resolved by the Board of Directors, we recognize risk management and compliance as one of our most important managerial issues and maintain and operate an internal control system.
Regarding internal control over financial reporting, the evaluation is conducted in accordance with the generally accepted evaluation criteria for internal control of financial reporting, which was announced by the Business Accounting Council.
In the fiscal year ending March 2021, we evaluated the effectiveness of the internal control for 50 domestic and overseas companies of the Group.
With the aim of enhancing cooperation between the Audit Committee and the internal audit divisions and effectiveness of audit operations, we changed the organization of the internal audit divisions in April 2021.
The general management function related to the internal control system, which was previously handled by the former Internal Audit Department, has been transferred to the Internal Control Department newly established in the CSR Headquarters, and a system has been established to further promote control improvements.
By reviewing the internal control system in response to changes in the business environment, we will improve the soundness and efficiency of the management of the entire NTN Group.

■Internal control system diagram

In our company, the Internal Audit Department is in charge of internal audit operations. The Internal Audit Department, as an organization that is independent of executive organizations, conducts internal audits of the status of the execution of operations by each division of the Company and domestic and overseas Group companies from the viewpoint of compliance with laws and internal regulations, and the appropriateness, effectiveness and efficiency of business activities.
Based on the results of internal audits, we provide advice and recommendations on improvements to the departments subject to audits. We also confirm the status of implementation of improvement measures and conduct follow-up audits.
The results of internal audits are reported to the President and the Audit Committee.
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 each region and country in accordance with local needs and characteristics.
The Audit Committee, the Internal Audit Department and the Accounting Auditor work to improve efficiency and effectiveness of audits by regularly holding meetings and exchanging information and opinions about the policies, plans, and results of audits.