CSR / Environment

Internal Control

Internal Control

Fiscal 2018 Objectives Fiscal 2018 Achievements Self-Evaluation
  • Implement comprehensive design and operation of measures based on Basic Policy for Internal Control;
    complete those measures as initially scheduled
  • Continue intensive efforts to resolve material issues (problems) in each internal control area, and submit
    Internal Control Report in June 2019
  • Completed measures as initially scheduled through continuous operation of those measures
  • Reviewed measures and conducted intensive efforts to resolve material issues (problems), and submitted Internal Control Report in June 2019
★★
Priority Objectives for Fiscal 2019
  • Implement comprehensive design and operation of measures based on Basic Policy for Internal Control; complete those measures as initially scheduled
  • Document and work on improving issues in each internal control area according to key system changes, carry out internal control assessments, and submit Internal Control Report in June 2020
  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent

As one way to ensure that its corporate governance is functioning effectively, Sharp is developing and maintaining its internal control system to ensure the properness of business activities of the entire Sharp Group based on the provisions of Japan’s Companies Act and of the Internal Control Report System falling under the Financial Instruments and Exchange Act.

In response to the enforcement of the Companies Act in 2006, the Board of Directors passed a resolution to adopt a basic policy related to the development of the systems for ensuring the properness of business activities (internal control system). Sharp is working to properly design and operate those systems. In accordance with this policy, Sharp also established the Internal Control Committee to serve as an advisory panel to the Board of Directors. The Internal Control Committee discusses various policy measures related to the internal control system, while also affirming their design and operation.

Sharp also thoroughly affirms the design and operation of various measures in line with the Basic Policy for Internal Control, and it makes sure the measures are established across the company. In addition, in response to the Financial Instruments and Exchange Act, Sharp has been assessing the effectiveness of its internal control over financial reporting. It has also taken steps to reduce various business risks and increase the effectiveness of its internal control system.

In fiscal 2018, Sharp implemented various measures to boost the control functions of each internal control area as well as the efficiency of assessments. Sharp also mounted intensive efforts to resolve material issues (problems) discovered in the assessments. In June 2019 it submitted an Internal Control Report stating that Sharp’s internal control over financial reporting is effective.

For fiscal 2019, Sharp will respond rapidly and flexibly to accelerated structural reforms including affiliated companies in Japan and overseas, identify processes and related IT systems that will be affected by key system changes, document and work on improving issues in each internal control area, and conduct assessments of internal control over financial reporting.

Internal Control System (As of June 2019)