Internal Control

Establishing internal controls to ensure 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 internal controls 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.

Status of Internal Auditing

The OMRON Group窶冱 internal audit functions are handled by the Global Internal Auditing Headquarters, an independent organization, under the guidance of the President and CEO. The Global Internal Auditing Headquarters supervises Internal Audit offices established in regional management companies in North America, Europe, Greater China and Asia-Pacific manage overseas locations, and periodically implements internal audits on accounting, operations and compliance from a risk management perspective. Internal audits are implemented at the departmental level, and the results are reported to the President and to the Audit & Supervisory Board on a monthly basis, with an annual summary report being submitted to the Board of Directors.

With regard to mutual coordination between internal audits, audits by Audit & Supervisory Board Members, and accounting audits, the head of the Global Internal Auditing Headquarters attends monthly meetings of the Audit & Supervisory Board to report audit results and exchange opinions on strengthening internal audits, and regular meetings with the Accounting Auditor are held to share information on their activities. The Global Internal Auditing Headquarters also coordinates on a regular basis with internal control divisions such as legal, accounting, and finance, sharing information on risk assessments and other matters, as appropriate. The Global Internal Auditing Headquarters also lists countermeasures, monitoring, and other activities in relation to the 窶徭ignificant Group risks窶 drawn up by the Corporate Ethics & Risk Management Committee, visualizing residual risks for the Company as a whole, and conducting theme audits centered on the status of governance by the head office for the material risks selected from the list.
The Global Internal Auditing Headquarters is also moving forward with initiatives aimed at strengthening internal control, such as using computer-assisted audit techniques to identify anomalous values in accounting data across the Group at a global level, with inquiries being made to the relevant companies and self-checks required.
Members of the Global Internal Auditing Headquarters are appointed as Audit & Supervisory Board Members of domestic subsidiaries, offering advice and opinions in relation to governance and the internal control system by conducting financial auditing, attending meetings of the Board of Directors, and participating in various other meetings.
Management candidates are seconded from divisions to the Global Internal Auditing Headquarters, and through audit activities, they acquire a management perspective and sensitivity to risk in the expectation that they will make further contributions in the future in their original divisions after these assignments end. This human resources development program is implemented on an ongoing basis.