Governance structure
For the internal control reports for the 39th through 41st fiscal years, the assessment of internal control over financial reporting was changed from "effective" to "ineffective," and material weaknesses requiring disclosure were reported.
| Item | Details |
|---|---|
| Committee | Special Investigation Committee (percentage of outside members: Not disclosed) |
| Changes this time | For the internal control reports for the 39th through 41st fiscal years, the assessment of internal control over financial reporting was changed from "effective" to "ineffective," and material weaknesses requiring disclosure were reported. |
Items this document does not state (6)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Fictitious circular transactions with no underlying business substance had been conducted in the advertising agency business of a consolidated subsidiary since prior fiscal years, resulting in the overstatement of net sales and other items. In addition, the design and operation of company-wide internal controls relating to the segregation of authority at the subsidiary, as well as internal controls addressing fraud risk in business processes from ordering through acceptance, were inadequate.