JVC 2013 Annual Report Download - page 34

Internal Audit, Auditors’ Audit and Accounting Audit Systems
JVCKENWOOD has established the Corporate Audit Office to conduct extensive field audits, including those of
related companies of the Group, and to uniformly monitor the status of internal control. Under this structure,
JVCKENWOOD is able to discover problems in their early stages from a standpoint that is not based on the values
of business fields, and to reduce the occurrence of problems.
The number of personnel of the Corporate Audit Office as of June 25, 2013 was ten, of which three persons
are directors or executives of main overseas subsidiaries (holding concurrent positions). These subsidiaries function
as the bases for conducting internal audits.
To audit the execution of business and internal controls, the Corporate Audit Office, which is 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 assessments, 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.
Three certified public accountants, Yasunari Kunii, Yasuhiko Haga and Nobuo Son, performed accounting
audits of JVCKENWOOD and the Group. They are designated limited liability partners and managing partners of
Deloitte Touche Tohmatsu LLC. While Toshiyuki Ono and Nobuo Son have performed the said audits for five
consecutive years, Yasuhiko Haga was involved in these audits for the first time. The total number of audit assistants
is 30 (13 certified public accountants and 17 other assistants).
Coordination between Internal Audits, Auditors’ Audits and Accounting Audits
All the auditors including external auditors perform management audits by themselves, attend Board of Directorsʼ
meetings, obtain the results of internal audits performed by the Corporate Audit Office in relation to the Groupʼs
overall business operations, and exchange and confirm relevant information by holding meetings with the
Corporate Audit Office whenever necessary. If there is a sign of fraud, etc. committed by management, the
Corporate Audit Office is required to report it to auditors in accordance with the internal rules.
At Board of Auditorsʼ meetings, the results of accounting audits performed by independent auditors are
regularly reported to auditors. As a result, the validity of mutual coordination between audits has been improved.
JVCKENWOOD has established its internal audit system so that the Corporate Audit Office can conduct its
audits in collaboration with the Groupʼs finance and accounting divisions, and has also strengthened monitoring
functions by performing audits for each compliance theme in collaboration with the Compliance Committee, and
by other means.
External directors attend Board of Directorsʼ meetings, and recognize the Groupʼs overall business performance
by obtaining the results of internal audits performed by the Corporate Audit Office. As a result, they can oversee
the Groupʼs business execution, give advice, and make proposals whenever necessary from a professional as well as
independent standpoint with no conflicts of interest.
32 JVC KENWOOD Corporation
Corporate Governance