Internal Audit System

The internal audit of the Company is performed mainly by the Audit Division in accordance with the internal audit regulations and the internal audit plan. The audit operation is supported by branch auditors and audit assistants positioned at the Head Office and respective branches.
The Company has a system in place to ensure that all audit results are reported to management.

Purpose of Internal Audit: The purpose of the internal audit is to precisely grasp the status of corporate affairs and the financial position so that it can be used for prevention of fraud and errors, and rationalization of management and improvement of business operations and raising operating efficiency.

Scope of Internal Audit: Matters subject to internal audits include compliance with internal rules, compliance with related laws and regulations, the levels of duties, morale and health of employees, the status of execution of operations based on management policies, accounting treatment and matters regarding the acquisition and management of assets.
In addition, with the internal control reporting system based on the Financial Instruments and Exchange Act started to be implemented in FY2008, evaluations of the effectiveness of internal control carried out by the Company and its consolidated subsidiaries in conjunction with financial reports were added to audit items. Consequently, internal control performed on a groupwide basis, internal control related to business results/financial reporting processes, internal control pertaining to operational processes, IT-based control;, among other items, are subject to evaluations.
The Internal Audit Department maintains close contact with Corporate Auditors and provides them with information related to internal audits as necessary.