Nintendo 2016 Annual Report Download - page 21

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the responsible divisions and departments of the Company identify and manage such matters as the
management status of the respective subsidiaries they are in charge of, obtaining information
therefrom as necessary, and subsidiaries are required to obtain the Company’s prior approval for
significant matters.
Furthermore, in addition to audits by the Company’s Accounting Auditors, the Audit and
Supervisory Committee also conducts audits with respect to subsidiaries as necessary. The Internal
Auditing Department likewise conducts audits with respect to subsidiaries as needed in addition to
providing guidance and cooperation on internal controls. Major subsidiaries have established
internal auditing divisions or departments, and each subsidiary is promoting the establishment of
internal control systems suitable to the size of the subsidiary and the law in the region where the
subsidiary is located, with the cooperation of relevant divisions and departments of the Company.
In addition to providing guidance and cooperation on compliance to each subsidiary as needed,
the Company has established a whistleblowing system at major subsidiaries to render it possible to
provide information directly to the Company in order to enhance and promote the compliance of
the Company group as a whole. Under the umbrella of the Global Compliance Conference, which
comprises top management and other members of the Company and its major subsidiaries, the
person in charge of compliance at each company regularly holds meetings.
6) System to ensure that the Audit and Supervisory Committee effectively performs its duty
・ Matters related to employees to assist the duty of the Audit and Supervisory Committee
The Company has established a special organization to assist the duty of the Audit and
Supervisory Committee, the Audit and Supervisory Committee Office, and the Office has
dedicated staff members who work to assist the duty of the Committee under the direction of the
Committee.
Employees in the Audit and Supervisory Committee Office are selected and transferred with
the agreement of the Audit and Supervisory Committee to ensure independence of such
employees and effectiveness of the direction of the Committee to such employees.
・ System for reporting to the Audit and Supervisory Committee
The President of the Company regularly holds meetings with the Audit and Supervisory
Committee Members, and provides them with timely reports regarding the matters designated by
law. The Company’s Internal Auditing Department provides the Audit and Supervisory
Committee with internal audit reports in a timely manner and, furthermore, the Company’s
Directors and other employees report to the Audit and Supervisory Committee as needed matters
reported by a Director or another employee of a subsidiary or matters concerning execution of the
Company’s or a subsidiary’s business.
An employee who reports to the Audit and Supervisory Committee will not be treated
unfavorably.
・ Other systems to ensure that audits by the Audit and Supervisory Committee are effective
The Audit and Supervisory Committee attends the meetings of the Board of Directors as well
as participate in important committees and meetings that are deemed necessary in order to ensure
that the audits conducted are effective. In the event an Audit and Supervisory Committee member
requests the payment of costs and expenses in connection with the performance of his/her duties,
the request is processed pursuant to relevant laws in accordance with internal regulations.
7) System to ensure fairness and reliability of financial reporting
In order to ensure the fairness and reliability of financial reporting, the Company implements
internal controls for financial reporting which it has developed in an appropriate manner in
compliance with laws and regulations such as the Financial Instruments and Exchange Act. The
Company also assesses implementation of these internal controls, checks their validity on an
ongoing basis and takes necessary measures to improve them.