Suzuki 2006 Annual Report Download - page 22

SUZUKI MOTOR CORPORATION
(c) Independent auditor
Seimei Audit Corporation is assigned as an independent auditor for the Company. Corporate auditors receive
explanation from independent auditor on audit plans for the corresponding fiscal year, reports on audit on interim
and year-end, and also reports on audit on subsidiaries. Corporate auditors, audit department and independent
auditor create a closer connection by exchanging information whenever necessary.
Name of Engagement Partners Auditing company CPA belongs to
Takashi Imamura Seimei Audit Corporation
Akira Iwama Seimei Audit Corporation
Note: The number of other assistant members for audit:
Seven certified public accountants and two others.
(d) Relationships with external corporate auditors
Three external corporate auditors have no special interest in the Company.
(3) Development of internal control system and risk management system
In order to enhance corporate governance, the Company is making efforts to keep everyone informed about
compliance and to strengthen internal control system. Based on the Corporation Law (Kaisha-hou), resolution of the
board of directors regarding the basic policy for construction of internal control system was passed on May 15, 2006.
Basic approach and its development are as follows:
(a) Compliance system for directors
Directors respect the “Mission Statement” and the “Suzuki Action Charter” and execute their duties in
compliance with the “Rules of the Board of Directors”, the “Approval Procedures” and other rules of the Company,
and mutually supervise their execution of duties through meetings of the board of directors, etc. And directors
enhance closer connection by being in charge of multiple divisions and eliminate the negative effects of
bureaucratic sectionalism. Besides the above, the Company established the “Suzuki Corporate Ethics Rules”
(April, 2002) which lays out a set of basic points for directors and employees to act in a fair and faithful manner in
compliance with the law, the norms of the society and company rules. It is revised whenever necessary. And
corporate auditors audit the execution of duties of directors in accordance with the audit policies and work
responsibilities set by the board of corporate auditors.
(b) Compliance system for employees
In order to ensure that employees execute their duties in compliance with the law and the Articles of
Incorporation of the Company, the Company is making effort to keep everyone informed about the “Suzuki
Employees’ Action Charter” which lays out the norms of action of employees, the “Approval Procedures” and the
“Job Description” which set up the proceedings of execution of their duties in details, and other rules of the
Company. It is revised whenever necessary. Furthermore, in accordance with the “Suzuki Corporate Ethics
Rules”, the Company has developed compliance system for employees including internal report system, and has
educated them through various training and in-house seminars regarding compliance. And, in accordance with
the “Rule of Internal Auditing”, the audit department audits on the integrity and efficiency of various control
systems, organizations and rules, and properness of function of internal control, etc.
(c) Risk management system
The Company has set up the “Risk Management Procedure” as part of the “Suzuki Corporate Ethics Rules” to
cope with risks such as malpractices or illegal acts which could occur inside and outside the Company or such as
natural disasters and terrorism which the Company can not prevent. Whenever the “Corporate Ethics Committee”
recognizes risks that could cause urgent and serious damages to the Company’s management and business
operations, the committee immediately sets up “Risk Management Headquarters”, in accordance with the “Risk
Management Procedure”, as an organization that will decide on the measures to be taken against the occurred
risk. “Risk Management Headquarters” immediately discuss and decide policies and measures to be taken and
can give instructions to the appropriate divisions and departments. These divisions and departments are then
able to communicate with each other to resolve any issues at hand.
MANAGEMENT POLICY
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