Epson 2016 Annual Report Download - page 40

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39
presented to the head of the audited organization along with requests for corrective action, where needed.
This information is also regularly reported to the president of Seiko Epson and to the Audit & Supervisory
Committee. In this way, Epson strives to optimize operations across the entire Group.
Safeguarding and management of work-related information
(1) Information on the performance of duties is safeguarded and managed in accordance with regulations
governing, among other things, document control, management approval, and contracts. All directors are
able to access this information at all times.
(2) The Company strives to prevent the leak and loss of Epson Group internal information by managing
confidential information according to the level of sensitivity, in accordance with internal information
security regulations.
Audit system
(1) The Audit & Supervisory Committee can interview directors who are not members of the Audit &
Supervisory Committee, executive officers, and other personnel whenever they deem necessary in the
performance of duties based on the Audit & Supervisory Committee Audit Regulation.
(2) Audit & Supervisory Committee members can attend Corporate Strategy Council sessions, corporate
management meetings, and other important business meetings that will enable them to conduct audits
based on the same information as that available to directors who are not members of the Audit &
Supervisory Committee. Members of the Audit & Supervisory Committee also routinely review important
documents related to management decision-making.
(3) An Audit & Supervisory Committee Office was set up to assist the duties of the Audit & Supervisory
Committee. The head of the Audit & Supervisory Committee Office serves as the Special Audit &
Supervisory Officer and assigns full-time personnel to the Audit & Supervisory Committee Office. The
head and personnel of the Audit & Supervisory Committee Office discharge their duties to assist the Audit
& Supervisory Committee, obeying the orders of the Audit & Supervisory Committee alone and not orders
from directors who are not members of the Audit & Supervisory Committee. Matters relating to the
personnel of the office must be approved in advance by the Audit & Supervisory Committee.
(4) To ensure that audits by the Audit & Supervisory Committee are systematic and effective, a framework has
been created to secure close cooperation between the internal audit departments and the Audit &
Supervisory Committee.
(5) If a situation involving the Audit & Supervisory Committee or cooperation with the internal audit
departments or other organizations is observed to interfere with the effectiveness of audits by the Audit &
Supervisory Committee, the Audit & Supervisory Committee can ask the representative director or Board
of Directors to take corrective action.
(6) The Audit & Supervisory Committee receives audit reports from internal audit departments and can issue
specific instructions to internal audit departments as needed. If the instructions issued to internal audit
departments by the Audit & Supervisory Committee and the president are in conflict, the president will
have the internal audit departments honor the instructions of the Audit & Supervisory Committee.
(7) Per the Audit & Supervisory Committee Audit Regulation, the Audit & Supervisory Committee can ask
directors who are not members of the Audit & Supervisory Committee, the compliance management
department, and the risk management department, as well as others to report or explain the state of
management within the Epson Group, including subsidiaries. It can also view supporting materials. The
Audit & Supervisory Committee can also ask, as needed, subsidiary company directors, corporate auditors,
internal audit departments, and other organizations to report the state of management of the subsidiary.
(8) The Audit & Supervisory Committee shall strive to enhance the effectiveness of audits by holding regular
discussions with accounting auditors.
(9) The Audit & Supervisory Committee and representative director regularly meet to enable the committee to
directly assess business operations.