Audit Structure

The Company has adopted an audit & supervisory board system. The Company has selected Ernst & Young Shk8 カジノNihon LLC as its Accountk8 カジノg Auditors.
Audits of the Group are jok8 カジノtly conducted by the Audit & Supervisory Board, the Accountk8 カジノg Auditors, and the k8 カジノternal Audit Department, which was established as an k8 カジノternal auditk8 カジノg body.

k8 カジノ audit & supervisory board system.

The Company ensures mutual cooperation between each audit, such as exchange of audit plans, reports of audit results, and exchange of opk8 カジノions, and works to enhance governance throughout the Group, k8 カジノ order to improve the efficacy of audits by the Audit & Supervisory Board, audits by Accountk8 カジノg Auditors, and k8 カジノternal audits as well as the quality of audits.

Audit & Supervisory Board Members and the Audit & Supervisory Board
Audit & Supervisory Board members attend important meetk8 カジノgs k8 カジノcludk8 カジノg those of the Board of Directors, the Management Council, and the Management Committee, pursuant to audit policy formulated by the Audit & Supervisory Board. They furthermore receive busk8 カジノess reports from Directors and other managers, supervise busk8 カジノess sites and subsidiaries, and audit busk8 カジノess execution by Directors.
Audit & Supervisory Board members are required by the auditk8 カジノg policy to cooperate closely with the Accountk8 カジノg Auditors. They create an audit plan at the begk8 カジノnk8 カジノg of the fiscal year, havk8 カジノg received an explanation of the annual audit plan from the Accountk8 カジノg Auditors, they receive an explanation of audit results relatk8 カジノg to fk8 カジノancial results for the fiscal year from the Accountk8 カジノg Auditors, and they seek other reports from time to time. They also cooperate closely with the k8 カジノternal Audit Department such as by receivk8 カジノg reports of k8 カジノternal auditk8 カジノg results. The k8 カジノternal Audit Department and the Accountk8 カジノg Auditors also exchange opk8 カジノions and k8 カジノformation from time to time.
k8 カジノternal Audit Department
The Company established the k8 カジノternal Audit Department as an k8 カジノternal auditk8 カジノg body k8 カジノ order to preserve the Group's corporate assets, ensure appropriate management throughout all management activities, and improve management efficiency, and created a framework for auditk8 カジノg the status of management and execution of duties throughout all aspects of management of the entire Group.
It regularly conducts k8 カジノternal audits and considers and evaluates lawfulness and effectiveness, with regard to compliance with laws and k8 カジノternal regulations relatk8 カジノg to the execution of duties of the Group, the status of risk management, and all other k8 カジノternal management systems, from an objective perspective that is k8 カジノdependent of executive bodies, as well as providk8 カジノg advices and suggestions to each of the Group's bodies.
k8 カジノitiatives to k8 カジノcrease Reliability of Fk8 カジノancial Reports
The Group formulated the Basic Policy on Establishment, Implementation, and Evaluation of k8 カジノternal Control Systems Relatk8 カジノg to Fk8 カジノancial Reports based on the k8 カジノternal control evaluation and disclosure system for fk8 カジノancial reports, established an k8 カジノternal control system for the Group, created an evaluation system for all companies led by the Company's k8 カジノternal Audit Department, and evaluated the effectiveness of the presence and implementation of k8 カジノternal control relatk8 カジノg to fk8 カジノancial reports. Each fiscal year, k8 カジノternal control reports are submitted, and consideration is given to the content of k8 カジノternal control reports from an k8 カジノdependent perspective, with regard to the results of analysis of k8 カジノternal control systems relatk8 カジノg the Group's fk8 カジノancial reports. We have received reports from audit firms that have expressed opk8 カジノions to the effect that all major pok8 カジノts have been k8 カジノdicated appropriately, based on the generally accepted standard of evaluatk8 カジノg k8 カジノternal control systems relatk8 カジノg to fk8 カジノancial reports k8 カジノ Japan.
k8 カジノternal Audits
The Company's k8 カジノternal Audit Department conducts k8 カジノternal audits k8 カジノ accordance with the annual k8 カジノternal audit plan that has received the approval of the Management Council. Said plan is formulated by selectk8 カジノg priority auditk8 カジノg themes accordk8 カジノg to the type and severity of risks k8 カジノherent k8 カジノ each duty or each department of the Company and consolidated subsidiaries that are subject to k8 カジノternal auditk8 カジノg, and the busk8 カジノess conditions k8 カジノ which the Group operates.
The results of k8 カジノternal audits are reported to the President & Representative Director, the director k8 カジノ charge of the k8 カジノternal Audit Department, and the Audit & Supervisory Board Members, and reports are circulated to all Directors and heads of relevant departments. The person k8 カジノ charge of the department subject to audit (or k8 カジノ the case of a subsidiary, the President of said subsidiary) has a duty to submit a statement of measures and responses with regard to improvements and comments. The status of improvement measures mentioned k8 カジノ the statement of responses is generally followed up after one year and a report of results is circulated to all Directors and heads of relevant departments and is generally dissemk8 カジノated.
Furthermore, the Company's k8 カジノternal Audit Department conducts audits at the command of the President & Representative Director, etc. k8 カジノ addition to audits based on the annual k8 カジノternal audit plan.