Internal Audits / Internal Control

Internal Auditing Division was established under the direct control of the President, with regular inspections of the operating departments and audits being implemented by the President’s special mission, in accordance with the internal audit regulations.
A resolution for an internal control system―“Integration of an internal control system”―was duly passed by the Board of Directors meeting in June 2003. This is now being developed with a view to full implementation.
To ensure reliability of financial reports as a member of the Hitachi, Ltd. Group, which is listed on the New York Stock Exchange, an Internal Control Promotion Project was initiated in June 2004. The project has been working within the standard COSO framework of the American SOX law.
In 2006, with the prospect of having measures in place to comply with the American SOX law, an “Internal Control Committee” was established, the reporting and operating systems concerning effectiveness evaluation with regard to the internal controls in the Hitachi Information Systems and other Group companies was streamlined, and the integration, service maintenance, and issues relating to the operation of internal control systems in a proper and highly effective manner were addressed. Also, Internal Control Education implemented e-learning for all employees.
In 2007, in the fiscal year preceding the application of the Law on Sales of Financial Products(known popularly as the Japanese SOX law), progress will be made regarding issues that need to be addressed by the Hitachi Information Systems Group.

Internal audits are conducted by the Internal Auditing Division, which is charged with ensuring that Hitachi Information Systems headquarters, work sites, and consolidated subsidiaries are operating in an accurate, justified, and rational manner; with ensuring transparency in regards to business management conditions; and with contributing to the improvement of business results and reforms.
Specifically, regular audits are based on criteria to investigate and evaluate the proper following of fundamental business practices, the appropriateness of management practices, and the effectiveness of business activities. They are also performed by special order with regards to specified criteria.