Internal Control

Internal Control Activities

In addition to the many activities that have been implemented in the past, action on compliance has been reinforced through the operations of the Internal Control Committee and the Audit Department.

Role of the Internal Control Committee

The Company Act clearly stipulates that the senior executives of a company must build an internal control system to prevent violation of the law and related damages. Based on the company’s Principles, the Internal Control Committee, which includes representatives of group member companies, has established a Code of Conduct that clearly identifies the direction that the Topre Group is to take and should be kept in mind by each individual within the organization. In order to implement the Code of Conduct and promote business efficiency, regulations, manuals, and other documentation are now in preparation.

What is an Internal Control System?

  • Effective and efficient business operations
  • Trustworthy financial reports
  • Compliance with laws and regulations in business activities

The internal control system is a process that guarantees the above elements by integrating them into operations and into the actions of all employees. For efficient business administration and compliance with laws and regulations, “a corporate climate that discourages violation,” “systems that prevent violation” and “a system to ensure accurate accounting statements” are in place and are continuously evaluated and improved.

To build and promote this internal control system, Topre established the Internal Control Committee, with the following subcommittees under it:

1.Compliance Subcommittee

Compliance activities are organized in all business departments and sections, including affiliated companies, to implement “Topre Group’s Principles” and the “Code of Conduct.”

2.Risk Management Subcommittee

Risks are identified and evaluated, and countermeasures are developed.

3.Financial Reporting Control Subcommittee

Operational procedures are developed, and inspections conducted to confirm that the procedures are being faithfully implemented.

Conceptual Diagram of Topre Group Internal Control