Ensuring sound and efficient organizational management
To ensure sound and efficient management and operations of the organization, OMRON has established a basic policy for the establishment of an internal control system. In conformance with this policy, OMRON strengthens and implements an internal control system to make sure that all four objectives of internal controls are met. The objectives are: reliability of financial reporting, legal and regulatory compliance, effectiveness and efficiency of operation, and maintenance of assets.
As for the internal control reporting (more commonly known as "J-SOX") which became mandatory by the Financial Instruments and Exchange Law enacted in June 2006, each division/Group company conducts self-assessment for the establishment and implementation status of its internal control system for business process, and the internal auditing department monitors the results of assessment. Self-assessment helps each division/Group company to increase their understanding of internal control for financial reporting, facilitating more autonomous control.
Two types of internal autits to ensure sound
and effective organizational operations
Omron conducts two types of internal audits to ensure the sound and effective operation of its organization. The Internal Control Audit is conducted to ensure the internal controls are functioning effectively in each of the four objective areas of financial report accuracy, legal compliance, operating efficiency, and asset safeguarding. The Management Audit examines the solutions and improvement measures implemented for specific management issues. In the event the result of these audits includes items recommended for improvement, the Company supports measures to carry out the improvements.
In addition, the Omron Group has established a Corporate Auditor Office and placed full-time auditors in each of its four regions of global business (the Americas, Europe, Greater China,* and Asia Pacific) to implement internal audits based on local practices and legal systems at its business sites worldwide.
* Greater China includes China, Hong Kong, and Taiwan.