Updated on August 23, 2017
The Audit Committee conducted the audit of the performance of duties by Directors and Corporate Executive Officers pursuant to laws and regulations, and the Audit Committee Rule established by the Board, through deliberation at Audit Committee meetings (held seven times during the fiscal year 2016, ending March 31, 2017), activities of members of the Audit Committee (for example. attending the Compensation Committee or Nominating Committee meetings or, reviewing reports relating to the execution of duties by the Corporate Executive Officers, employees of Sony or Directors, company auditors and employees of major subsidiaries of Sony etc.) and activities of the Audit Committee supporting personnel (i.e., the Audit Committee Aide). The Audit Committee also assesses the eligibility and the independence of the independent auditor and the adequacy of the audit by receiving the notice that the independent auditor provides regarding maintenance of systems to ensure the execution of its duties under the Quality Control Standard for Audit etc., pre-confirming the audit plan at the beginning of each fiscal year, pre-approving auditor compensation, and reviewing the report of the procedures, and the result of the audit, for the last fiscal year and interim periods including review of quarterly financial reports and evaluating their content, etc.
Sony Corporation established a department in charge of internal audit, the Risk & Control department which coordinates closely with the internal audit departments of major subsidiaries around the world, and the Sony Group Internal Audit Charter, and endeavors to maintain and enhance the internal audit structure of the Sony Group in order to promote the Sony Group's internal audit activities on a global basis. The Risk & Control department and each internal audit department of major subsidiaries ("Internal Audit Department") play an important function in maintining the Sony Group's governance in order to strengthen the Sony Group's management structure, promote efficiency of management, and maintain and avoid any loss of material assets, including Sony's brand image, by evaluating the effectiveness of the internal control system and risk management structure through independent and objective audit. The Risk & Control department and each Internal Audit Department conducts the internal audit of each department or subsidiary it supervises, guided by an the annual audit plan that is established based on the risk assessments conducted in the beginning of each fiscal year and any matters proposed by Sony's management or the Audit Committee. Each internal audit is conducted under a planned audit procedure. Afterward, each Internal Audit Department follows up until the completion of any improvement plan based on the audit result. In order to ensure its independence, fairness and objectiveness, the appointment and dismissal of the person in charge of the internal audit at the Risk & Control department is subject to the prior approval of the Audit Committee. The appointment and dismissal of the person in charge of each Internal Audit Department requires the prior approval of the person in charge of Risk & Control department. The Internal Audit Departments of major subsidiaries are required to provide the Risk & Control department with a report on the material items and a copy of the issued audit report, and the Risk & Control department makes periodic presentations to the Audit Committee, the CFO, and the Corporate Executive Officer in charge of Internal Audit on these reports. The Risk & Control department also makes periodic reports to the independent auditor on the status of the internal audit activities and the result of the audit. The audit report issued by the independent auditor is used for the planning of the internal audit and conducting internal audit.
Sony's accounting audit is conducted by PricewaterhouseCoopers Aarata under the au agreement. The certified public accountants who conducted the accounting audit of Sony for the fiscal year 2016, ending March 31, 2017 are as follows:
Koichiro Kimura, Hitoshi Kiuchi, Takaaki Ino and Masataka Kubota
The support staff of PricewaterhouseCoopers Aarata relating to Sony's accounting audit is composed of 92 certified public accountants, 79 assistant certified public accountants and 138 other staff members.