Fujitsu 2013 Annual Report Download - page 147

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1. Basic Framework of Internal Control over Financial Reporting
Masami Yamamoto, President and Representative Director of Fujitsu Limited (the “Company”), and
Kazuhiko Kato, Corporate Executive Vice President and Director and Chief Financial Officer of the Company,
are responsible for the design and operation of internal control over financial reporting for the Fujitsu
Group’s consolidated financial statements. The Fujitsu Group designs and operates its internal control over
financial reporting in accordance with guidelines set forth in “On the Setting of the Standards and Practice
Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting
(Council Opinions)” from the Business Accounting Council of the Financial Service Agency of Japan.
Internal control aims at achieving the objectives to a reasonable extent with the organized and inte-
grated function of basic individual components of internal control as a whole. There are inherent limita-
tions to the extent that internal control can be achieved. Such limitations include misjudgments and
carelessness by individuals carrying out internal control activities, or fraud caused by the collusion of two
or more individuals. Accordingly, internal control may not completely prevent or detect misstatements in
financial reporting.
2. Scope of Assessment, Assessment Date and Assessment Procedure
The Fujitsu Group performed an assessment of internal control over financial reporting for its consoli-
dated financial statements as of the end of the fiscal year, March 31, 2013, in accordance with generally
accepted assessment standards in Japan for internal control over financial reporting.
In making an assessment of the entire Fujitsu Group, including the parent company, Fujitsu Limited,
and its consolidated subsidiaries and equity method affiliates, the necessary scope of the assessment
was determined from the perspective of material impact on the reliability of financial reporting. Within
the scope of assessment, the Company identified the risks of misstatement which would have a material
impact on the reliability of financial reporting and the controls which mitigate such risks to a reasonably
accepted level, and then assessed the effectiveness of the design and operation of those controls.
The Company determined that 102 consolidated companies and 1 equity method affiliate should be sub-
ject to the assessment of company-level controls, and financial closing and reporting process controls, taking
into account the degree of quantitative and qualitative impact on the consolidated financial statements.
With respect to process-level controls, considering the results of the assessment of company-level con-
trols, the Company designated 23 business locations that accounted for approximately two-thirds of the
aggregated sales for this fiscal year (before elimination of inter-company transactions) of the consoli-
dated companies as “significant business locations/units” which should be subject to the assessment.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
145
FUJITSU LIMITED ANNUAL REPORT 2013
FACTS & FIGURES