To ensure sound and efficient management and operations of the organization, OMRON has established a basic policy for the establishment of an internal control system. In conformance with this policy, OMRON strengthens and implements an internal control system to make sure that all four objectives of internal controls are met. The objectives are: reliability of financial reporting, legal and regulatory compliance, effectiveness and efficiency of operation, and maintenance of assets.

In February 2009, OMRON was awarded the Prize for Excellence at the Japan Internal Control Grand Prix 2009 organized by the Integrity Award Council. The Integrity Award recognizes and commends companies which are proactively committed to raising compliance awareness and enhancing internal controls. OMRON was recognized for incorporation of the CSR system development and implementation into the company’s long-term management strategy.

OMRON’s internal audit consists of two auditing programs designed to maintain sound and efficient management and operation of the organization. First, the general internal control audit is aimed at ensuring that its internal control system is functioning appropriately in four areas of internal controls. These four areas are: reliability of financial reporting, legal and regulatory compliance, effectiveness and efficiency of operation and maintenance of assets. Second, the management process audit is intended to provide solutions for specific management issues and propose improvement measures.

Particularly for the general internal control audit, departments subject to auditing use check sheets for self-assessment, which help them strengthen their understanding of problems pointed out by auditors so that they can implement improvements more effectively.

To conduct general audit for internal controls at the global level, an internal auditing department was set up at each of four global regions (Americas, Europe, Asia Pacific and Greater China) as well as Japan, in which specialized auditors are stationed.