Trend Micro 2009 Annual Report Download - page 17

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ii) To ensure the reliability of financial reporting by the Company and the group companies,
the establishment and operation of internal controls relating to financial reporting shall
be promoted.
iii) In the event that any of the subsidiaries determines that management control and
management guidance of the Company breaches any law or constitutes problems in
compliance, it shall report it to Internal Auditor.
Immediately upon receiving such report, the Internal Auditor shall report to the
corporate auditors and the directors, and he or she may state his or her opinion.
Upon receiving such report, the corporate auditor shall state an opinion to the directors,
and may require them to establish remedial plans.
iv) The Internal Auditor shall from time to time visit subsidiaries and monitor over their
operations.
(6) System concerning employees who assist the Corporate Auditors when required and
their independence from the directors
i) In the event that a corporate auditor requires the company to appoint employees
(hereafter referred to as “Auditing Staff”) to assist with his or her duties, the Company
shall consult with the corporate auditor and provide Auditing Staff from among the
employees of the Company.
In case Auditing Staffs are established, personnel transfer, personal evaluation and
other matters respecting the Auditing Staffs shall be determined with the opinions of
the corporate auditor in mind, thus ensuring independence from the directors.
ii) In the event that a corporate auditor so requires, he or she may request employees to
conduct specific audit tasks with notice given to the superiors of such employees. In this
case, employees who receive such a request shall report to the corporate auditors,
notwithstanding the chain of command of regular employment.
(7) A system for directors and employees to report to corporate auditors, other systems for
reporting to corporate auditors, and a system for ensuring of effective auditing by
corporate auditors
i) The directors shall report the following to the corporate auditors:
c Matters resolved at the Executive Meetings;
d Matters that might cause significant damage to the Company;
e Important matters regarding management;
f Important matters regarding audit, establishment and operation of internal control
and risk control;
g Serious breach of law or the Articles of Incorporation;
h Matters regarding changes or introduction of accounting policies; and
i Other important compliance matters.
Furthermore, in the event that an employee finds important matters regarding d,
g and i above, he or she may report to the corporate auditors directly.