Governance Internal Audit

The Internal Audit Division is under the direct control of Representative Director President and Executive Officer (the President) and conducts internal audits to ensure compliance with laws, regulations, and rationality and efficiencies with respect to the business execution divisions and the business execution status of subsidiaries.The president of the Internal Audit Department reports the results of all audits to the president, and the Audit and Supervisory Committee reports the results to Director Committee on a monthly basis. The Committee reports on the results of the audits on a semi-annual basis.We are working to ensure the effectiveness of the report by establishing a dual reporting line that includes the exchange of opinions and instructions to be provided at the time of reporting.Audits (on-site audits) by Audit & Supervisory Committee members are conducted in a cooperative manner at the same time as internal audits.The Audit & Supervisory Committee uses the Internal Audit Division within the Executive System to obtain information and give instructions on audits as necessary.We have concluded an audit agreement with Tohmatsu, a limited liability audit corporation, and are commissioned to conduct audits in accordance with the Companies Act and the Financial Instruments and Exchange Act.