Internal Control/Internal Audit

We regard risk management and compliance as one of the most important management issues, and have established a basic approach to internal control system (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.
The Internal Control Department supervises evaluation of internal controls based on the Financial Instruments and Exchange Act. (the internal controls reporting system). It also works to develop and strengthen the internal control system under the Companies Act.
Regarding challenges arising with regard to internal controls as discovered by audits, it examines the design and operational status of rules, procedures and systems from a Group-wide perspective, then aims to reinforce internal controls through remediation and improvement activities.

NTN Group’s Internal Audit Department, under the direct oversight of the President, Executive Officer, undertakes internal audits independently of the department under audit. The internal audits are conducted into the status of business execution by Group executive organizations from the perspective of propriety and compliance with laws, regulations and internal regulations, as well as from the viewpoint of the effectiveness and efficiency of business activities.
Internal audits involve auditing each executive organization separately (operational audit) and auditing horizontally across organizations by risk and business function (thematic audit). Based on the results, advice and suggestions are provided to the department concerned. Follow-up audits are conducted to check on the implementation of improvements until they are complete.
The results of internal audits are reported to the President, Executive Officer, the Board of Directors and the Audit Committee, as well as being shared with all Executive Officers. In addition, the Audit Committee, the Internal Audit Department and the Accounting Auditor hold regular meetings to exchange information and opinions about audit policies, plans and results in order to improve their efficiency and effectiveness.
Overseas, we have established an Administration & Internal Control Department within General Manager’s Offices, which supervise each region. The Internal Audit Department and the Administration & Internal Control Departments work together while taking into account the circumstances and characteristics of the region concerned.