Status of Audits

The Audit & Supervisory Board, in accordance with audit policy and the division of duties, not only attends the Board of Directors meetings but also holds liaison sessions with the representative directors once a month in principle, raising issues and exchanging opinions. Outside Audit & Supervisory Board members also perform routine business audits, attend important meetings with organizations such as of the Executive Management Committee and the Executive Sustainability Committee, exchange opinions with people from administrative departments, and read reports from branch offices and sales departments (to the extent possible). If a full-time Audit & Supervisory Board member acts independently, they share the information with other members, and if necessary, make a recommendation to the Board after discussing the issue. In this way, we are able to properly audit the execution of duties by directors and enhance the check-and-balance system. Furthermore, we have set “initiatives to strengthen group governance” as a priority audit theme, and conduct regular audits of the business/financial condition of group companies and monitor business execution by holding meetings with auditors of group companies. In addition, we are strengthening the functions of the Audit & Supervisory Board by working together with accounting auditors and the Internal Audit Office to confirm the maintenance and operation status of the internal control system. We also established an Auditor Secretariat (a department dedicated to assisting auditors) in April 2023.