Internal Audit

Status of Internal Audits

The Internal Audit Department conducts internal audits through "site audits" and "audits by theme" in accordance with mid-term and annual audit plans formulated based on company-wide risk assessments to confirm whether governance, risk management, and internal control systems are in place and operating properly.

In the "site audits" multiple offices are selected each year and audited based on the results of risk assessments of each Mitsubishi Estate department, branch, and domestic and overseas group company conducted by the Internal Audit Department at the time of the audit plan formulation. In this audit, we audit the status of penetration of basic philosophy and compliance including the Mitsubishi Estate Group Basic Mission, Charter of Conduct, and Action Guidelines, as well as the status of risk management activities at the relevant sites.

The "audit by theme" is an audit based on predetermined themes. One such theme is the "Audit on the Effectiveness of the Company-wide Risk Management System," which is conducted every year. The theme is selected based on a risk approach, including risk identification, evaluation, management, and monitoring processes, as well as the status of response to significant risks.

All audit results are reported to the President and explained to the full-time Audit Committee member and the director in charge of compliance. In addition, a summary of the results is also reported to the Management Committee and the Audit Committee, and important items are also reported to the Board of Directors. Issues identified in audits are notified to the audited departments, etc., requesting them to take measures for improvement, and the status of improvement is confirmed.

In addition, the Internal Audit Department undergoes external evaluations on a regular basis (approximately every five years), with the most recent external evaluation conducted in FY2021. The latest external evaluation was conducted in FY2021. Through these efforts, we strive to continuously improve the quality of our audits.

The Internal Audit Department also serves as the secretariat for management's reporting on internal control over financial reporting (J-SOX), and promotes the evaluation of internal control over financial reporting in cooperation with the audit by the accounting auditor. In this context, the Internal Audit Office evaluates the status of internal controls, including compliance systems, of the Company and its consolidated subsidiaries in cooperation with the relevant departments.

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