Analysis of the Causes of Accounting Misconduct and Improvements to Internal Control Systems

「本件の各問題の根本にあるのは、役職員における内部通報制度の理解不足及びガバナンス・コンプライアンスに対する意識の不十分さであると考える。」

「The Internal Audit Department conducts internal audits systematically in accordance with the internal audit plan. When an ad hoc audit is required, such as in response to an investigation into misconduct, it conducts a special audit at the direction of the president or the Audit and Supervisory Committee.」

「Through the establishment and investigation of the investigative committee, we plan to work as a company-wide effort to restore trust by formulating and implementing measures to prevent recurrence. The Audit and Supervisory Committee will continue to monitor and verify the implementation of measures to prevent recurrence and the strengthening of the internal control system.」

「The Company reviewed the specific details and implementation schedule of its Improvement Plan and measures to prevent recurrence, and all officers and employees of the Group are implementing the remedial measures in accordance with the plan and advancing initiatives to improve the internal control system and other areas. The Company resubmitted its Internal Control System Confirmation Report to the Tokyo Stock Exchange on 30 September 2024, and an examination based on that report is under way.」

「The Company remains committed to contributing to the realisation of a sustainable and prosperous society through the Group's technology and knowledge, maintaining constant awareness of the various challenges facing society and working as one Group toward sustainable growth and enhanced corporate value. ㈱東京衡機試験機 has also reviewed its officer structure and is strengthening coordination between the Sagamihara and Toyohashi plants to enforce cost management and reduce costs. In cooperation with its business partner ㈱先端力学シミュレーション研究所, which develops CAE (Computer Aided Engineering) software and provides commissioned analysis and development services, it is also building a platform for business expansion, including a database to improve the efficiency of design and estimation operations. In line with the three-year medium-term management plan published on 27 February 2024, the Company is advancing measures for further growth.」

「Subsequently, on 1 April 2024, the Company submitted an Internal Control System Confirmation Report to the Tokyo Stock Exchange and, on 2 April of the same year, disclosed the progress of its improvement plan, updated to reflect the implementation and operational status of the improvement measures.」

「To maintain its listing and restore the trust of its stakeholders, the Company formulated and published an Improvement Plan and Status Report as of 28 August 2023, and all officers and employees are working together on the improvements.」

「The Company is developing and strengthening its governance and internal control system to maintain its listing and restore the trust of its stakeholders, with all officers and employees working together on the improvements.」

「The Company will review its existing business activities and execute them steadily, while taking seriously the severity of the accounting misconduct in light of the findings and recommendations in the third-party committee's investigation report dated 3 March 2023. It will promptly analyse the causes of the issue and formulate and implement remedial measures, making improvement of the internal control system its highest management priority.」