JVC 2012 Annual Report Download - page 30

Internal Audits and Audit & Supervisory Board Members Audit Systems
JVCKENWOODʼs Corporate Audit Office conducts internal audits on the overall business execution of the entire
Group and reports the results of those audits to the oversight organization, the Board of Directors. Conducting
the integrated monitoring of internal control execution results in the early detection of problems from the
perspective of values different from those of work sites, and strengthens the Companyʼs ability to prevent such
events from occurring. As of the Securities Report submission date, ten staff members were serving in the
Corporate Audit Office, three of whom were also serving as executives or management staff of overseas
headquarters. The Corporate Audit Office acts as their base during internal audits. Tasked with auditing the
operations of the entire Group, the Corporate Audit Office prepares a Risk Assessment Form when formulating
an audit schedule and selects the subjects of audits based on risk assessment, resulting in an increase in the
effectiveness of internal audits. Audit & Supervisory Board Members 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. Audit & Supervisory Board Members also attend audits performed by the
Corporate Audit Office, thereby broadening the scope of their audits.
The relationships among Audit & Supervisory Board Members, accounting auditors, and internal audit
sections are as follows. All Audit & Supervisory Board Members, including external Audit & Supervisory Board
Members, conduct management audits themselves, attend Board of Directors meetings to keep track of internal
audits conducted by the Corporate Audit Office regarding the Groupʼs overall operations, and hold discussions
with the Corporate Audit Office, when necessary, to exchange and confirm information with each other. If the
Corporate Audit Office senses any sign of misconduct on the part of management, the office will report on the
matter to the Audit & Supervisory Board Members.
At Audit & Supervisory Board meetings, Audit & Supervisory Board Members regularly receive reports on the
results of accounting audits by accounting auditors, and endeavor to improve the effectiveness of each audit
through mutual cooperation.
JVCKENWOOD strengthens its internal audit structure, conducts audits of the Corporate Audit Office in
cooperation with the Groupʼs finance and accounting section, and implements audits along compliance themes
in concert with the Compliance Committee, resulting in an enhanced monitoring function.
The certified public accountants (CPAs) who have executed the accounting audits of JVCKENWOOD and of
the JVCKENWOOD Group are Toshiyuki Ono, Toshiharu Matsuura, and Yan-Sheng Sun. Designated Limited
Liability and Engagement Partners of Deloitte Touche Tohmatsu LLC, all three have conducted the audits
continuously for four years. The team of audit assistants consists of 35 persons: 16 CPAs and 19 other assistants.
28 JVC KENWOOD Corporation
Corporate Governance