Deficiencies in Internal Controls over Sales Transactions and the Consolidated Financial Reporting Process
First written in FY2019-Q2. 2 of 5 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2025.
2 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「After discovering in the previous consolidated fiscal year that a consolidated subsidiary might have recorded expenses in the wrong fiscal year or failed to record them, we established a Special Investigation Committee and conducted an investigation. Based on the findings and recommendations in the committee’s investigation report, our group is developing measures to prevent recurrence and working to establish effective corporate governance and strengthen compliance, including strengthening group controls and management systems and thoroughly implementing compliance education.」
In response to the subsidiary’s expense-recording issue, conducted an investigation by a Special Investigation Committee, developed measures to prevent recurrence and strengthened group controls and management systems. - FY2024MaterialisedAnnual report
「It was found that, as a result of these inappropriate acts, selling, general and administrative expenses had been understated by ¥11 million in the fiscal year ended September 2022, ¥30 million in the fiscal year ended September 2023, ¥71 million in the first quarter accounting period of the fiscal year ending September 2024 and ¥185 million in the second quarter accounting period.」
Understatement of expenses was identified in a subsidiary’s recording of advertising-related purchases, and in the consolidated statement of income for the fiscal year ending September 2024, operating income, ordinary income and profit before income taxes each decreased by ¥41 million as a cumulative effect. - FY2022RestatedAnnual report
「Regarding the system for ensuring the appropriateness of financial reporting, we place importance on reliable financial reporting and continuously develop, operate, evaluate and improve internal controls in accordance with the Internal Control Regulations.」
Stated the policy of continuously developing, operating, evaluating and improving internal controls to ensure the reliability of financial reporting. - FY2019-Q3RestatedAnnual report
「We are currently working to improve and strengthen monitoring of our group’s sales transactions and controls over the consolidated closing process, but if these initiatives fail to function effectively in the future, they may affect the reliability of our group’s financial reporting.」
Continues to describe the internal control deficiencies in sales transactions and the consolidated closing process, and the potential impact on the reliability of financial reporting if remediation is ineffective. - FY2019-Q2MaterialisedAnnual report
「In the amended internal control report submitted on 12 July 2019, we stated that the internal controls over our group’s financial reporting were not effective. We are currently working to improve and strengthen monitoring of our group’s sales transactions and controls over the consolidated closing process, but if these initiatives fail to function effectively in the future, they may affect the reliability of our group’s financial reporting.」
An amended report stated that the internal controls over financial reporting were not effective, and identified the need to improve and strengthen controls over sales transaction monitoring and the consolidated closing process as a risk for the first time.