Suzuki 2010 Annual Report Download - page 22

SUZUKI MOTOR CORPORATION 21
(c) Independent Auditor
Seimei Audit Corporation is assigned as an Independent Auditor for the Company. Corporate Auditors receive explana-
tion from Independent Auditor on audit plans for the corresponding scal year, reports on audit on the nance and accounting
statements, 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
Satoru Imamura Seimei Audit Corporation
Akira Iwama Seimei Audit Corporation
Note: The number of other assistant members for audit: Eight certied public accountants and eight others.
(d) Relationships with Outside Corporate Auditors
Three Outside 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. The basic policy for construction of internal control system and its development are as fol-
lows:
(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 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 and observes the same. It is revised whenever nec-
essary by “Corporate Ethics Committee” which promotes corporate ethics in the Company. 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 accor-
dance 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 efciency 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 divi-
sions and departments are then able to communicate with each other to resolve any issues at hand.
(d) System to ensure proper business operation of the corporate group
To ensure a proper business operation of the corporate group which consists of the Company and its subsidiaries, the
Company has established the “Rules of Business Control Supervision”. It is revised whenever necessary. The subsidiaries and
afliates report to the Company on their business operation and consult with the Company on important matters in accor-
dance with those rules, and departments in charge give guidance and advice to them to enhance their management struc-
ture. And our audit department helps to make rules for the subsidiaries and afliates, conducts guidance, supporting and
auditing for their regulatory compliance. It also promotes efciency and standardization of their business.
Management policy