JVC 2010 Annual Report Download - page 25

JVC KENWOOD Holdings, Inc. 23
JVC Kenwood is a company with a board of auditors. Auditors attend
Board of Directorsʼ meetings and other important meetings, hold
Board of Auditorsʼ meetings, audit the execution of duties by
Directors and the entire Groupʼs business execution, perform
accounting audits and hold the corporate audit function.
The Board of Auditors holds meetings once every month and
whenever necessary. Since June 2009, five auditors (including three
external auditors) have been engaged in corporate audits.
■ Establishment of Internal Control and Risk
Management Systems
JVC Kenwood has established the following systems to ensure that
the Group runs its operations properly.
1. Framework to Ensure the Exercise of Directorsʼ Functions are
Conducted in Conformity with Laws, Regulations and the
Companyʼs Articles of Incorporation
2. Framework for the Storage and Management of Information
in Relation to the Exercise of Directorsʼ Functions
3. Framework for Regulations and Such Concerning the
Management of Risk of Loss
4. Framework to Ensure the Efficient Exercise Directorsʼ Functions
5. Framework to Ensure that Employees Execute Their Duties in
Compliance with Laws/Regulations and the Companyʼs Articles
of Incorporation
6. Framework to Ensure the Propriety of Business Operations for
the Corporate Group Consisting of JVC Kenwood and Its
Subsidiaries
7. System Concerning Employees Who Assist Auditorsʼ Duties
and Matters Regarding to the Independence of Such
Employees from the Control of Directors
8. Framework for the Reporting of Directors and Assistants to
Auditors/Framework for Other Reporting to Auditors
9. Framework to Ensure Effective Auditing of Auditors
10. Framework to Ensure Propriety of Financial Reports
■Internal Audits and Auditorsʼ Audits Systems
JVC Kenwood conducts internal audits on the overall business
execution of the entire Group. Results of these audits are reported to
the Board of Directors, an oversight organization, by the Corporate
Audit Office, where twelve staff members are engaged in operational
audits and internal control audits. The Corporate Audit Office, tasked
to audit the operations of the entire Group, prepares the Risk
Assessment Form when formulating an audit schedule and selects
auditing targets based on risk assessment, resulting in an increase in
the effectiveness of internal audits.
Auditors implement audits according to the audit schedule, audit
the entire Groupʼs operations, and check in-house approval
documents based on the monitoring of directors and executive
officers. Auditors also attend audits performed by the Corporate
Audit Office, thereby broadening the scope of their audits.
JVC Kenwood provides information for stakeholders in a timely and
appropriate manner. We establish timely disclosure rules as in-house
regulations, and under the Information Disclosure Council develop
the content and means of disclosure when there is information that
needs to be communicated.
Provision of information for Stakeholders
Corporate Governance