Risk of deficiencies in internal controls associated with an increase in subsidiaries and affiliated companies
First written in FY2017. 2 of 5 entries say "Restated". Latest entry: FY2025.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The Internal Audit Office and the Internal Audit Committee conduct internal audits of major affiliates, as they do for the Company, cooperate in auditing the status of their internal control systems, and encourage improvements based on the audit results.」
In response to the internal control risks associated with an increase in subsidiaries and affiliates, the Company explicitly describes internal audits of major affiliates and follow-up on improvements. - FY2023MaterialisedAnnual report
「The investigation confirmed that, as improper accounting identified as involving the general manager of 英才JV, deposits of 英才JV had been misappropriated for personal use from 2010 through 2016.」
The internal control risk associated with an increase in subsidiaries and affiliates materialized as the confirmation of improper accounting and personal misappropriation of deposits at a Chinese subsidiary. - FY2020RestatedAnnual report
「To reduce these risks, the Group has established policies and other rules in accordance with applicable laws and regulations, and has developed an internal control system to ensure compliance.」
The Company continues to recognize the internal control risks associated with an increase in subsidiaries and affiliates, and describes management through the development of internal rules and its internal control system. - FY2018RestatedAnnual report
「The number of the Group's subsidiaries and affiliates in Japan and overseas has been increasing, and the Group is working to further strengthen its internal management structure. However, if any aspect of the establishment, operation or monitoring of its internal control framework fails to function adequately due to human factors or rapid changes in the business environment, the Group may be unable to manage various business risks appropriately, which could affect operating performance.」
The Company continues to describe its policy of strengthening internal management controls as the Group expands, as well as the risks that could arise if internal controls fail to function effectively. - FY2017First statedAnnual report
「The number of subsidiaries and affiliates in Japan and overseas has been increasing, and the Group is working to further strengthen its internal management structure. However, if any aspect of the establishment, operation or monitoring of its internal control framework fails to function adequately due to human factors or rapid changes in the business environment, the Group may be unable to manage various business risks appropriately, which could affect operating performance.」
While pursuing stronger internal management controls in response to the Group's expansion, the Company describes the risk that the establishment, operation or monitoring of internal controls may fail to function effectively.