Delay in Establishing Internal Management Systems in Response to Business Expansion
First written in FY2021. 2 of 5 entries say "Restated". Latest entry: FY2025.
126 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「We will continue to promote greater compliance awareness and ensure that it is thoroughly communicated, strengthen our management structure and check-and-balance functions, and identify, assess and address potential risks.」
The strengthening of the internal management structure and check-and-balance functions, together with the identification, assessment and mitigation of potential risks, continues. - FY2024RestatedAnnual report
「We will continue to promote greater compliance awareness and ensure that it is thoroughly communicated, strengthen our management structure and check-and-balance functions, and identify, assess and address potential risks.」
The strengthening of the internal management structure and check-and-balance functions, together with the identification, assessment and mitigation of potential risks, which were addressed in the previous fiscal year, continues. - FY2023MitigatedAnnual report
「In the current fiscal year, in light of the internal-control deficiency involving expenses outside the budget in the fiscal year ended August 2022, we revised our rules governing duties and authority to tighten the approval process and authority, and reviewed internal meeting structures, with the aim of ensuring the appropriate use of expenses and thorough advance deliberation and application procedures.」
In light of the substantial investment in advertising expenses outside the budget during the previous fiscal year, the company is revising its rules governing duties and authority, tightening approval processes and authority, and reviewing its meeting structures. - FY2022MaterialisedAnnual report
「In the fiscal year ended August 2022, amid efforts to achieve early business success and expand the scale of operations, a deficiency in internal control occurred whereby a substantial amount of advertising expenses was invested outside the budget without going through the process of sharing, discussing and approving the investment risk at a Board of Directors meeting, which should ordinarily have taken place.」
The risk that internal management structures cannot keep pace with business expansion materialised in the form of an internal-control deficiency involving a substantial investment in advertising expenses outside the budget. - FY2021First statedAnnual report
「If rapid business expansion results in a situation where the development of an adequate internal management structure cannot keep pace, it may become difficult to conduct operations appropriately, which could affect our business and results of operations.」
The company identifies as a risk the possibility that the development of its internal management structure may not keep pace with rapid business expansion. It also describes the development of its internal control system, internal audit function and compliance structure.