Deficiencies in the Internal Management Framework and Financial Reporting Controls Associated with Business Expansion
First written in FY2019. 3 of 5 entries say "Advanced", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2023: 2 of 9 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「A dual reporting line has been established under which the results of internal audits are reported not only to the Audit Committee but also to the Representative Executive Officer and the Board of Directors.」
Under the company-with-a-nominating-committee structure, the reporting framework from Internal Audit to the Audit Committee, the Representative Executive Officer and the Board of Directors has been maintained and specified. - FY2025AdvancedAnnual report
「A dual reporting line has been established under which the results of internal audits are reported not only to the Audit Committee but also to the Representative Executive Officer and the Board of Directors.」
Under the company-with-a-nominating-committee structure, the reporting framework from Internal Audit to the Audit Committee, the Representative Executive Officer and the Board of Directors was specified. - FY2023AdvancedAnnual report
「The Internal Audit Department audits the status of business execution and reports the results to the Representative Executive Officer, the Audit Committee and the Board of Directors.」
In connection with the transition to a company with a nominating committee, etc., the internal management and financial reporting control framework was specified, including reporting from the Internal Audit Department to the Representative Executive Officer, the Audit Committee and the Board of Directors. - FY2021RestatedAnnual report
「If the establishment of a business structure and internal management structure appropriate to the scale of the business is delayed, this could affect the Group’s business, operating results and financial condition.」
The risks that the internal management structure may fail to keep pace with rapid growth and that deficiencies in internal controls over financial reporting may arise continue to be disclosed. - FY2019First statedAnnual report
「If the establishment of a business structure and internal management structure appropriate to the scale of the business is delayed, this could affect the Group’s business, operating results and financial condition. In addition, although the Group has established and operates an internal control system in accordance with laws and regulations to ensure the accuracy of its financial reporting, the possibility that material deficiencies in the Group’s financial reporting may be discovered cannot be ruled out, and there is no guarantee that the Group will always be able to establish and operate an effective internal control system in the future.」
For the first time, the risks that the internal management structure may fail to keep pace with rapid growth and that material deficiencies or inadequacies in internal controls over financial reporting may arise were presented separately.