Internal Control
Internal Control
| Fiscal 2023 Objectives | Fiscal 2023 Achievements | Self-Evaluation | Priority Objectives for Fiscal 2024 |
|---|---|---|---|
|
|
★★ |
|
- Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent
As a means of facilitating the effective functioning of corporate governance, Sharp has designed and operates an internal control system for ensuring the propriety of business activities across the entire Sharp Group based on the provisions of Japan’s Companies Act and of the Internal Control Report System, which falls under the Financial Instruments and Exchange Act.
Specifically, in order to establish Sharp’s basic approach to internal control, the Basic Policy for Internal Control was adopted by the Board of Directors. In accordance with this policy, Sharp also established the Internal Control Committee, chaired by the president and CEO, to serve as an advisory panel to the Board of Directors. The Internal Control Committee discusses various internal control system-related policy measures, while also affirming their design and operation, and, when necessary, carries out other duties, such as proposing revisions to the Basic Policy. Sharp also develops and maintains systems and structures, such as specialized departments, in accordance with the Basic Policy, establishing and implementing measures to facilitate them and comprehensively checking and evaluating their status of operation, as well as working to entrench and improve them. In particular, Sharp endeavors to, among other things, improve its financial reporting-related systems, strengthen compliance, and reduce business risks all for the sake of increasing the effectiveness of its internal control system.
In fiscal 2023, Sharp designed internal controls for the Sharp Group and conducted an exhaustive confirmation and evaluation of their operations, part of efforts to redesign and improve operations of internal controls for the Sharp Group. The Internal Control Committee convened twice during the fiscal year and reported its results to the Board of Directors.
These efforts helped to ensure the effective functioning of the Group internal control system in each of the control domains in fiscal 2023 (as of March 31, 2024), as detailed in an Internal Control Report, which was submitted in June 2024.
In fiscal 2024, we began applying, and are currently responding to, “On the Revision of the Standards and Practice Standards for Management Assessment and Audit Concerning Internal Control over Financial Reporting (Council Opinions),” announced on April 7, 2023 by the Financial Services Agency. We will continue to strengthen the control functions of each control domain, and more efficiently evaluate them. We will also conduct concentrated efforts to resolve the material issues (problems) discovered during evaluation as we strive for the most efficient and effective internal control.
Internal Control System (As of June 2024)
