Audit Committee

The Audit Committee monitors the operational execution of the Directors and Executive Officers and prepares audit reports. In addition, the Audit Committee proposes the appointment or dismissal of the Company's independent certified public accountants (or the passage of resolutions refusing their reappointment) to the annual general meeting of shareholders. In order to ensure the effectiveness of audits, the Audit Committee, the Audit Committee secretariat, the internal audit department, the internal control-related functions, and the independent certified public accountants work together.

Policies on Auditing

The Audit Committee has established the following four items as its fundamental policies:

  • The Committee shall monitor and verify the formulation and status of operations of the Group’s internal control systems. In particular, it shall consider the validity and effectiveness of compliance systems, systems to ensure the credibility of financial reporting, and risk management systems.
  • The Committee shall monitor and verify whether Directors, executive officers, and employees under the supervision of executive officers are complying with laws, ordinances, and the provisions of the Articles of Incorporation in fulfilling their obligations of loyalty and due diligence, as well as any other legal obligations to the Group.
  • The Committee shall monitor and verify whether Executive Officers are determining the execution of their duties and carrying out said duties appropriately and efficiently in accordance with basic management policies, medium-term management plans, and other plans and policies established by the Board of Directors.
  • To ensure the fairness and credibility of audits, the Committee shall monitor and verify whether the independent certified public accountants are maintaining their independent position and conducting appropriate audits as a professional expert.

Auditing System

  • The Audit Committee, which consists of three outside directors, evaluates the Group’s internal control systems from an independent standpoint and may appoint outside experts to conduct its duties if necessary. Aiko Sekine, chairperson of the Audit Committee, is qualified as a certified public accountant and has extensive knowledge in finance and accounting as a professional accountant.
  • Based on the policies on auditing, the Audit Committee verifies the status of the performance of duties and the formulation and status of operations of internal control systems with the Representative Executive Officer and the heads of internal control-related and accounting departments. The Audit Committee may appoint outside experts to conduct its duties if necessary.
  • The Audit Committee Secretariat, which includes four staff members, supports the work of the Audit Committee under the Audit Committee’s instructions. The appointment and evaluation of, changes to, and disciplinary action toward the staff of the Audit Committee Secretariat are carried out by the executive officer responsible for the Group Internal Audit Department with the approval of the Audit Committee.