Internal Control System

Basic Approach

Guided by the Board of Directors' basic approach to internal controls, we have developed a system of internal controls for ensuring legal and regulatory compliance, compliance with our Articles of Incorporation, and sound management in general.
The Audit Department provides guidance and support to enhance controls across the Group. For example, it evaluates the effectiveness of controls and, where issues have been detected, it follows up on the corrective and preventive action.
For follow-up, the department conducts four kinds of audits: divisional audits (conducted in Head Office's operating divisions), area audits (conducted in regional branches, plants, and logistics centers), business site audits (conducted in sales offices), and group company audits.

Purposes of internal controls

  • Ensure effective and efficient workflows
  • Ensure credible financial reporting
  • Ensure regulatory compliance

Internal control components

  • Controlling environments
  • Controlling activities
  • Monitoring
  • Evaluating and managing risks
  • Information and communication
  • Digital controls