Specific Efforts Toward CSR |
Response to the Japanese Version of the SOX Law |
The Construction of an Internal Control System for Financial Reporting
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The evaluation of internal control systems and reporting upon them is obligator, according to the Financial Instruments and Exchange Law, which is aimed at preventing the corporate scandals related to financial reporting that have occurred in recent times.
Suzuken fully understands the intentions of this obligation. The company has constructed an internal control system to ensure the reliability of financial reports as well as the transparency and efficiency of the execution of the company's work, and is making efforts toward putting this system into practice. |
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The System and Flow
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The Internal Control Department, an organization under the direct control of the President, evaluates internal systems connected to the company's financial reports and also controls such evaluation work throughout the group overall, including guidance on evaluation and promotional activities for subsidiaries subject to internal control system evaluations.
The Internal Control Department and the divisions in charge of evaluations at subsidiaries create Internal Control Confirmation Documents (draft) based on the results of self inspections and third-party inspections. The Internal Control Department creates an Internal Control Report (draft) based on the Internal Control Confirmation Documents received from each company.
Following the approval of the President and CEO and a report to the Board of Directors, the documents are submitted to the Prime Minister in combination with the annual security report. |
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Background to the Establishment of the Internal Control System
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| July 2005 |
Received the announcement of the public draft of the Evaluation and Auditing Standards for Internal Control over Financial Reporting by the Business Accounting Council of the Financial Services Agency |
| October 2005 |
Established an organization to prepare for the construction of an internal control system for financial reporting, invited external advisors, and advanced efforts toward the construction of an internal control system, also including major subsidiaries |
| July 2007 |
Established an Internal Control Department to further strengthen the internal control system |
| October 2007- March 2008 |
Carried out a test run of the manager's evaluation of the internal control system under assumed actual conditions and a dry run (simulated audit) by an audit firm, extracted and improved problems, and largely completed preparations for actual implementation |
| April 2008 |
Formulated Internal Control Regulations and various manuals for internal control system evaluation, and started the system officially |
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