Mazda 2007 Annual Report Download - page 44
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Department (with a staff of 20), which
performs internal audits, contributes to
sound and efficient management by
checking the appropriateness of operations
at Mazda and its affiliates with reference to
management’s objectives, policies and
plans, as well as all relevant laws and
regulations. Independent audits are
conducted under contract by KPMG AZSA
& Co. The corporate auditors, both
independently and collectively as the Board
of Corporate Auditors, the Internal Auditing
Division, and the independent auditor
cooperate through meetings.
Cooperation between corporate
auditors and the independent auditor
Regular meetings are held between
Mazda’s corporate auditors and the
independent auditor to promote close
cooperation between both parties. The
independent auditor provides Mazda’s
corporate auditors with details of audit
plans, any issues identified and the results
of audits, while corporate auditors explain
their audit plans, as well as the current
status and results of these audits.
Corporate auditors and the independent
auditor also conduct joint audits in certain
areas, including physical inspections of
inventories and stock certificates. Mazda’s
Internal Auditing Division also exchanges
opinions with corporate auditors.
Cooperation between corporate auditors
and the Internal Auditing Division
Corporate auditors meet with the Internal
Auditing Division on a monthly basis to
exchange information. At these meetings,
the Internal Auditing Division provides
details of plans and results of internal
audits, which also cover Group companies,
and reports on the status of initiatives to
reinforce internal control systems.
Information gleaned by corporate auditors
through the audit process is also provided.
Corporate auditors also submit any
requests they have to the Internal Auditing
Division. In addition, representatives of the
Internal Auditing Division attend every
Group Audit Liaison Meeting organized by
the corporate auditors and exchange
opinions with the independent auditor.
Main activities of outside corporate
auditors
In principle, the Board of Corporate
Auditors meets on a monthly basis.
Provided there are no special reasons to
exclude them, outside corporate auditors
attend these meetings, where they actively
exchange opinions with fellow corporate
auditors. Outside corporate auditors also
attend meetings of the Board of Directors.
Their role at these meetings is to ask
pertinent questions regarding directors’
proposals and reports, provide appropriate
input and express views from an audit
perspective. Together with Mazda’s full-time
corporate auditors, outside corporate
auditors receive reports from directors and
executive officers, meet with representative
directors, and inspect business sites and
subsidiaries.
Corporate auditor support system
Mazda has established an Audit Office to
support the activities of the corporate
auditors. The Audit Office is an independent
body, and its staff is selected and evaluated
by the personnel department after prior
consultation with the full-time corporate
auditors. Meanwhile, the full-time corporate
auditors brief outside corporate auditors
prior to meetings of the Board of Directors
or during meetings of the Board of