Internal Control/Internal Audit

We regard risk management and compliance as one of the most important management issues, and have established Internal Control Policy. Based on this basic policy, we maintain and operate the Group's internal control system, and are working to improve the soundness and efficiency of our management by constantly reviewing our internal control system in response to changes in the business environment.
We conduct assessment of internal control over financial reporting in accordance with generally accepted assessment standards for internal control over financial reporting. In the fiscal year ended March 31, 2022, we evaluated the effectiveness of internal controls for 50 domestic and overseas companies.

The Internal Audit Department reports directly to the President, Executive Officer and is in charge of internal audit operations independently from the divisions to be audited. The Internal Audit Department conducts internal audits of the execution status of execution organizations from the perspectives of compliance with laws and internal regulations, appropriateness, and the effectiveness and efficiency of business activities.
For internal audits, audits are conducted by each organization of the execution organization (operational audits) and cross-organizational audits by risk and business function (thematic audits). Based on the results of these audits, we provide advice and recommendations for improvement to the divisions subject to audits, as well as confirming the implementation status of improvement measures and conducting follow-up audits.
Overseas, we have established the Administration & Internal Control Department within the General Manager's Office of each region . The Internal Audit Department and the Administration & Internal Control Department work together to strengthen internal controls while taking into account the circumstances and characteristics of each region.
The results of internal audits are reported to the President, Executive Officer and to the Audit Committee. The Audit Committee, the Internal Audit Department and the Accounting Auditor work together to improve efficiency and effectiveness of audits by regularly holding meetings and exchanging information and opinions about the policies, plans, and results of audits.