Internal Control | Anritsu America

Policy
System
Activities and Achievements

Policy

Inappropriate accounting and compliance violations by companies have become social problems, and companies are required to strengthen their internal controls. The Anritsu Group develops and ensures the operation of the system based on the "Basic Policy for Establishing Internal Control System," which was resolved by the Board of Directors with the main objectives of ensuring the reliability of financial reporting and improving and enhancing the compliance system. In order to respond to changes in the nature of our business and the increasing complexity and diversity of the business environment, we will continually review our internal control system to ensure its effectiveness.

System

The Anritsu Group has established committees for each risk category as shown in the diagram of the risk management structure. Each committee deliberates on various measures, develops and operates internal control systems across domestic and overseas group companies, and promotes activities to ensure their effectiveness. Each committee reports its activities to the Management Strategy Conference and, when necessary, to the Board of Directors.

The Anritsu Audit & Supervisory Committee, Management Audit Department, Internal Audit Department, and the internal audit departments of group companies conduct audits that lead to the evaluation of the activities of each committee and internal control system, and make recommendations to the relevant organizations.

Activities and Achievements

Assessing the Effectiveness of Internal Controls

The effectiveness of internal controls is assessed by the Anritsu Audit & Supervisory Committee, Management Audit Department, Internal Audit Department, and the internal audit departments of each group company, which take the lead in conducting management interviews, data analysis, and on-site inspections for departments and group companies.

In FY2024, the Audit & Supervisory Committee and the Management Audit Department conducted 10 audits and the Internal Audit Department conducted 6 audits to confirm the effectiveness of the group's internal controls in Japan and abroad. Deficiencies were detected in the evaluation of internal controls over financial reporting, but appropriate remedial actions have been taken.

The Internal Audit Department is working to further improve audit quality by conducting an internal evaluation of audit quality in FY2024.

Strengthening the Internal Control of Group Companies

Anritsu manages the internal control of group companies by establishing regulations on matters that require prior approval and/or must be reported regarding the operations of its group companies. Anritsu has established guidelines outlining the minimum requirements that the Anritsu Group must comply with in its management. To assess the activities based on these guidelines, control self-assessment (CSA) is conducted at overseas group companies.

In FY2024, the role of the Internal Control Committee was revised to further strengthen the Anritsu Group's internal control system. In addition to the traditional focus on "reliability of financial reporting," the committee now has a structure to discuss and promote "effectiveness and efficiency of operations," "compliance," and "asset protection."