Ricoh 2006 Annual Report Download - page 60

59 ANNUAL REPORT 2006
( 2) Strengthening and enhancing internal controls
Efforts are being made to im prove business processes
and construct a fram ework for standardized internal
control throughout the entire Ricoh Group, with the
goal of “com plying with laws, norm s and internal
rules,” “improvem ent of business effectiveness and
efficiency” and “m aintaining high reliability of
financial reporting,” including compliance to the
section 404 of the Sarbanes-Oxley Act of 2002, and
other relevant laws and regulations.
( 3) Internal auditing
An internal auditing department shall perform fair and
objective exam ination and evaluation of how each
division is executing its business based on legal
compliance and rational criteria, and provide advice or
recomm endation for im provement.
5 . Systems to ensure cor r ect business standards in
the Ricoh group composed of the company and
its affiliates
Ricoh and each affiliate in the Ricoh Group shall devise a
system that will ensure the adherence to correct business
standards to improve business perform ance and enhance
the prosperity of each Group company, while keeping
mutual respect for their independence, as follows:
( 1) The Com pany’s Board of Directors and the “Group
Managem ent Comm ittee” ( GMC) make decisions and
perform management oversight for the Ricoh Group as
a whole. To ensure the efficacy of such efforts, they
establish management regulations concerning affiliate
companies, and set up relevant administrative
organizations in order to manage the Group.
( 2) The “Ricoh Group Standard” ( RGS) represents a set of
comm on rules to be followed by the entire Group.
6 . Matters regar ding employees whom auditor s
request to assist them in the perfor mance of
their duties
A system shall be established to assist work duties through
directives from auditors, and to select em ployees who shall
assist the auditors in their work.
7 . Matters related to the independence of auditor s’
staff from dir ectors described in No. 6 above
When an em ployee ( as in No. 6 above) assists auditors in
their work, he or she shall not be subject to orders given by
directors. In addition, decisions concerning personnel
assessments or personnel changes regarding said em ployees
shall be made only after hearing the opinions of the
auditors.
8 . Systems to enable dir ectors or employees to
report to auditors, and other systems related to
reporting to auditors
Directors or employees shall report to auditors m atters
concerning laws and regulations, as well as “important
matters decided by directors which affect the entire
company,” “the results of internal audits,” “the status of
reporting via the internal reporting system ,” and “m atters
which auditors have sought reports about.”
9 . Systems established to ensur e the efficacious
performance of auditing responsibilities by
auditor s
Auditors shall perform audits thoroughly by attending the
board of directors meetings and management meetings,
receiving reports on exercise of function from the directors
and executive officers, reviewing important resolution
docum ents, and investigating the status of operations of
divisions and group com panies.