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RESARCH REPORT
16th Comprehensive Research of Internal Audit in Japan
Internal Audit Whitepaper 2007
Abridged translation
The Institute of Internal Auditors - Japan
2
TABLE OF CONTENTS PREFACE............................................................................................................................................................... 4
REFERENCE ......................................................................................................................................................... 5
Corporate Auditor System in Japan ............................................................................................................... 5
COMMENTARY SECTION.................................................................................................................................. 9
Research Method ................................................................................................................................................. 9
1. Scope of research ............................................................................................................................... 9
2. Number of questionnaires sent........................................................................................................... 9
3. Period of research............................................................................................................................... 9
4. Method of research............................................................................................................................. 9
5. Number of responses.......................................................................................................................... 9
Basic Research................................................................................................................................................... 12
1. Classification of respondents – by Industry Classifications ............................................................. 12
2. Classification of respondents – by Capital ....................................................................................... 14
3. Classification of respondents – by Sales .......................................................................................... 15
4. Classification of respondents – by Total Assets................................................................................ 16
5. Classification of respondents – by Number of Employees............................................................... 17
Specific Research............................................................................................................................................... 18
<Internal Audit>.............................................................................................................................................. 18
1. Auditable entities (Table 1) .............................................................................................................. 18
2. Positioning of the Internal Audit Activity (IAA) in the organization (Tables 2 to 29)...................... 19
3. Internal Audit Plan (Tables 30 to 42)................................................................................................ 30
4. Performing Internal Audit (Tables 43 to 57)..................................................................................... 35
5. Internal Audit Report and Follow-up (Tables 58 to 74).................................................................... 41
6. Information System Audit (Tables 75 to 81) .................................................................................... 47
7. Audit of Subsidiary companies and Affiliated companies (Tables 82 to 89).................................... 50
8. Environment Audit (Tables 90 to 96)............................................................................................... 53
<Relationship with Other Audits> .................................................................................................................. 55
1. Relationship between Internal Audit and Kansayaku (Corporate Auditors) Audit (Tables 97 to 103)55
2. Relationship between Internal Audit and Audit Committee (Tables 104 to 110) ............................. 58
3. Relationship between Internal Audit and External Auditors (CPAs) (Tables 111 to 114) ................ 60
<Recent implementation / revision of Laws and Regulations> (Tables 115 to 117)....................................... 61
<Internal Auditors’ role under the Internal Control Report System> (Tables 118 to 126) .............................. 62
<Quality Assessments of Internal Audit> ....................................................................................................... 63
1. Internal Assessments (Tables 127 to 133) ........................................................................................ 63
2. External Assessments (Tables 134 to 143) ....................................................................................... 65
DATA SECTION.................................................................................................................................................. 67
Basic Research................................................................................................................................................... 67
1. Classification of respondents............................................................................................................ 67
Specific Research............................................................................................................................................... 74
<Internal Audit>.............................................................................................................................................. 74
1. Auditable entities (Table 1) .............................................................................................................. 74
3
2. Positioning of the Internal Audit Activity in the organization (Tables 2 to 29)...................................... 76
3. Internal Audit Plan (Tables 30 to 42)................................................................................................... 120
4. Performing Internal Audit (Tables 43 to 57)........................................................................................ 138
5. Internal Audit Report and Follow-up (Tables 58 to 74)....................................................................... 162
6. Information System Audit (Tables 75 to 81) .................................................................................. 185
7. Audit of Subsidiary companies and Affiliated companies (Tables 82 to 89).................................. 195
9. Environment Audit (Tables 90 to 96)............................................................................................. 204
<Relationship with Other Audits> ................................................................................................................ 212
1. Relationship between Internal Audit and Kansayaku (Corporate Auditors) Audit (Tables 97 to 103)212
2. Relationship between Internal Audit and Audit Committee (Tables 104 to 110) ........................... 219
3. Relationship between Internal Audit and External Auditors (CPAs) (Tables 111 to 114) .............. 226
<Recent implementation / revision of Laws and Regulations> (Tables 115 to 117)..................................... 230
<Internal Auditors’ role under the Internal Control Report System> (Tables 118 to 126) ............................ 237
<Quality Assessments of Internal Audit> ..................................................................................................... 246
1. Internal Assessments (Tables 127 to 133) ...................................................................................... 246
2. External Assessment (Tables 134 to 143)....................................................................................... 253
4
PREFACE
The Institute of Internal Auditors – Japan (IIA-Japan) was established in 1957, and it began to undertake
comprehensive research on internal auditing in Japan in 1958. The IIA-Japan conducts the research once every
three years, and 2007 marks the 16th year in which such research was conducted.
This is an abridged translation of the Internal Audit Whitepaper 2007. The original Japanese version includes the
personal views of Dr. Hida, a professor emeritus at Chuo University; however, some of Dr. Hida’s views are not
available in the English version. This translation meant to be only a source of information on the Japanese internal
audit practice. For more information on this topic, please refer to the Japanese version, which is the official text.
The IIA-Japan has provided additional information on the “Corporate Auditor System in Japan” as a source of
reference to understand a major Japanese corporate governance system. In this white paper, the “corporate
auditor” is referred to as “kansayaku” (kansa means audit and yaku means role).
March 2009
The Institute of Internal Auditors - Japan
5
REFERENCE
Corporate Auditor System in Japan (Excerpt from Japan Corporate Auditors Association’s web-site
http://www.kansa.or.jp/english/index.html)
1. Overview
Under Japan’s Companies Act of 2005, which consolidated corporate law regulations in Japan, a corporate
auditor ("kansayaku") is a mandatory organ of a joint-stock company with two exceptional situations. Specifically,
a small-scale closely-held company is not required to have kansayaku, and a "committee" company is required to
have three committees (the audit committee, the nominating committee and the compensation committee) but not
kansayaku. All other joint-stock companies must have kansayaku. This memorandum focuses on large-scale,
publicly held companies, which must set up a board of kansayaku ("kansayaku-kai") under the Companies Act.
The kansayaku system existed before World War II, but the amendments to the Commercial Code in 1950
reduced its power and responsibility. The system took on its current form through Commercial Code amendments
in 1974, 1981, 1993, and 2001; all of which extensively strengthened the power and independence of kansayaku.
These various provisions in the Commercial Code were consolidated under the Companies Act of 2005.
Kansayaku must be elected at a shareholders' meeting, and his/her role is to "audit" the activities of directors. This
audit includes both a "business audit" and a "financial audit." A business audit is an assessment of whether or not
the directors are correctly observing applicable laws and the company's charter provisions while managing the
company, and is commonly referred to as a "compliance audit."
A financial audit is conducted before the financial statements are submitted to a shareholders' annual meeting.
The audit report, which contains the results of both the financial and business audits, must accompany the notice
of the shareholders' meeting. Consolidated financial statements are also subject to auditing by kansayaku, and the
results of the audit must be reported at the annual shareholders' meeting.
The kansayaku system is stricter in "large companies." A large company is defined in the statute as a joint-stock
company having legal capital of 500 million yen or more or total balance-sheet liabilities of 20 billion yen or more,
and there are approximately 12,000 large companies today. For such a large company, if it is a publicly-held
company (which is defined under the statute as a company where the transfer of shares is not restricted by its
charter), there must be at least three kansayaku members, at least one of whom is required to be full-time, and at
least half of whom must be "outside" kansayaku. Kansayaku-kai must be formed. In view of the function it plays
in large companies, kansayaku-kai can be seen as similar to an audit committee in the United States. However, the
Japanese kansayaku-kai must be a separate body from the board of directors, and must include at least one
full-time kansayaku. In addition, kansayaku may not serve concurrently as a director. The Companies Act
requires even greater independence for outside kansayaku.
2. Election, Duty and Liability of Kansayaku
6
2.1. Election of Kansayaku
Kansayaku members are elected at the shareholders' meeting with a quorum that may not be reduced to less than
one-third of the total number of voting shares (the same as for the election of directors). The Companies Act
provides grounds for the disqualification of kansayaku and directors, such as not permitting an auditor to serve
concurrently as a director, officer or employee of the company or its subsidiaries.
Kansayaku has the right to express opinions at the shareholders' meeting regarding the election of other
kansayaku. Kansayaku who has resigned is entitled to attend the first shareholders' meeting that is convened after
his resignation and express his/her views. Other kansayaku members have the same right.
Kansayaku-kai also has the right to give consent and the right to make suggestions regarding the board of
directors' proposals on the candidates of kansayaku that are submitted to a shareholders' meeting for election.
Each kansayaku serves a four-year term, as compared to two years for directors. This term cannot be shortened by
the charter. Compensation must be set in the charter or by a resolution at the shareholders' meeting, separately
from the compensation for directors.
As mentioned earlier, large publicly-held company must have a minimum of three kansayaku members. Also, at
least half of them must be "outside" kansayaku, and this means that they must not have formerly been a director,
officer, or employee of the company or its subsidiaries. A board of kansayaku (kansayaku-kai) must be formed,
and the board must elect at least one full-time kansayaku. Thus, in such large companies, while the Japanese
board system is two-tiered, it differs considerably from the German two-tier corporate governance system.
2.2 Duty of Kansayaku
The legal relationship between kansayaku and the company is entrustment “inin”. Consequently, kansayaku owes
a duty of care to the company. Under the Companies Act, the legal duty of kansayaku is to "audit" the activities of
directors, through a business and financial audit. (The audit may be limited to the latter in "small-scale
closely-held companies," but the situation concerning such small companies is omitted in this memorandum.)
A business audit is a check on whether or not the directors are observing laws, regulations and the company's
charter provisions in managing the company and is commonly called a "compliance audit." It is generally
understood that this does not include a check on the appropriateness of a director's decision-making or activities
(sometimes referred to as an "appropriateness audit"). However, since the Companies Act imposes a duty of care
upon its directors, a business audit must include a check on whether or not there have been any breaches of this
duty of care, and therefore, kansayaku must examine the directors' business judgments from this perspective.
A financial audit is an audit of financial statements and, unlike an audit required under the Securities and
Exchange Act, it must be conducted before the annual shareholders' meeting. The audit report, which contains the
results of the financial and business audits, must accompany the notice of the annual shareholders' meeting and be
sent to shareholders two weeks prior to the meeting. Reporting companies under the Securities and Exchange Act
must prepare consolidated financial statements under both the Securities and Exchange Act and the Companies
Act, and they are also subject to auditing by kansayaku, the results of which are reported to the annual
shareholders' meeting.
7
Kansayaku is given various powers and legal rights in order to carry out their duties.
2.3 Right of Investigations
Kansayaku has the right to ask a director or employee to provide a report on the company's operations and the
right to examine the operations and assets of the company at any time. If a director is aware of the possibility of
significant damage occurring to the company, he or she must report this to kansayaku-kai even without being
asked by kansayaku. Each kansayaku also has the legal right, under prescribed conditions, to ask for a report and
examine the operations and assets of any of the company's subsidiaries. The company bears the expenses of this
audit (including the examination).
2.4. Prevention of Director's Illegal Action
All kansayaku members must attend all board of directors' meetings and each auditor is entitled to express
opinions as necessary with a view to preventing the board of directors from making illegal or significantly
inappropriate decisions affecting the company. Even outside the realm of board of directors’ meetings, if
kansayaku notices a violation, or the possibility thereof, of a law or the company's charter provisions by a director,
he or she must report it to the board of directors. If necessary, kansayaku may ask for a board of directors meeting
to be called, or kansayaku has the right to call a meeting him/herself. When a decision or action violating a law or
the company's charter provisions cannot be prevented or rectified, and the proposals or documents submitted by a
director addressing this violation to a shareholders’ meeting contain illegal statements or significant
inappropriateness, kansayaku must report his/her judgment on this point at the shareholders' meeting. If there is a
possibility that the director's action in violation of law or the charter provisions will cause considerable damage to
the company, kansayaku has the right to ask the director to stop the action. Finally, kansayaku has standing to sue
for the nullification of a shareholders' meeting.
2.5. Litigation Between the Company and Its Directors
In litigation between a company and its director, kansayaku represents the company. Accordingly, it is kansayaku
who makes decisions about whether the company will sue a director. It is also kansayaku to whom a "demand" is
submitted in a shareholder derivative action. When a shareholder derivative action is filed before the court, the
company may "participate" in the litigation on behalf of the defendants only if all kansayaku members give their
consent. In addition, more generally, consent of all kansayaku members is required for the liability of directors to
be discharged in accordance with the procedures and limitations provided by the Companies Act.
2.6. Financial Audit
A financial audit is an audit of financial statements and their appendices. A large company must appoint a CPA or
auditing firm as an external financial auditor. The external financial auditor is elected at the shareholders' meeting,
and the election proposal must be approved by kansayaku-kai in advance. Accordingly, a financial audit in large
companies is undertaken primarily by the external financial auditor, and this financial auditor's report is submitted
to both kansayaku-kai and the board of directors. Kansayaku checks the appropriateness of a summary of the
process and of the results of the financial auditor's auditing. If kansayaku believes that either is inappropriate, he
or she usually must state this along with his/her reasons in the audit report. Kansayaku will then undertake an
audit by him/herself and describe a summary of the process and the results of such audit in the audit report. If the
financial auditor uncovers an inappropriate act or a violation of the law or the company's charter provisions in
8
connection with the directors' activities, the financial auditor must report it to kansayaku-kai. Kansayaku also has
the right to ask the financial auditor for a report if necessary. Along with all of the above, in large companies,
kansayaku is responsible for monitoring and managing the external financial audit, as is the case with an audit
committee in the United States. The audit report accompanies the notice of the annual shareholders' meeting and
includes the results of the financial and business audits. This audit report is prepared by kansayaku-kai, but each
kansayaku has the right to write his or her own opinion. As noted above, consolidated financial statements are
also subject to auditing by kansayaku.
2.7. Liability of Kansayaku
Under the Companies Act, if there is a breach of kansayaku’s duty of care owed to the company, such kansayaku
is liable to the company for damages. In addition, if there is bad faith or gross negligence in the audit activity, or if
the audit report contains a false statement, such kansayaku may be liable directly to a third party for damages.
9
COMMENTARY SECTION
Research Method 1. Scope of research
In order to cover all kinds of Internal Audit Activities (IAAs) found in different organizations, the Institute of
Internal Auditors - Japan (IIA-Japan) distributed research questionnaires to not only business corporations
but also to independent administrative institutions, special public institutions, school corporations,
associations etc. The business corporations were not limited to listed companies. The questionnaire was sent
to IIA-Japan’s corporate member organizations as well as non-member organizations.
2. Number of questionnaires sent Questionnaires were sent to 1,885 corporate member organizations of IIA-Japan and 2,411 non-member
organizations. In all, 4,296 questionnaires were sent. This was an increase of 1,139 organizations in
comparison to the previous research conducted in 2003.
3. Period of research
The research was conducted from October 26 to November 25, 2007. All questionnaires had to be filled in
and sent by November 26, 2007.
4. Method of research The questionnaires were sent by post. The replies, on the other hand, were received by either post or fax.
IIA-Japan did not conduct follow-up interviews.
5. Number of responses The number of responses and ratios are as follows.
Number of total responses 1,481 organizations (34.47%)
Number of usable responses 1,473 organizations (34.29%)
Number of unusable responses 8 organizations ( 0.19%)
The historical data is as follows: Research year
Number 2007 2003 2000 1997
Questionnaires sent 4,296 3,157 2,891 2,675
Total responses 1,481 (34.47%) 1,053 (33.35%) 883 (30.54%) 918 (34.32%)
Usable responses 1,473 (34.29%) 1,044 (33.06%) 870 (30.09%) 911 (34.05%)
In comparison to the research conducted in 2000, the ratio of both the number of total responses and the
number of usable responses increased by 3.93 percent and 4.20 percent respectively. These ratios also
exceeded the results of 1997, which were the highest in the past. In addition, the number of total responses is
40 percent higher than the research conducted in 2003. This was due to the recent implementation of the
“Corporation Law” and the “Financial Instruments and Exchange Law”, and increased interests of corporate
governance and internal controls.
10
The number of usable responses is 1,473, which is 429 more than that of the research conducted in 2003. The
highest-increased industry groups shown in the next page are Chemical, Machine, Electric equipment, Misc.
manufacturing among manufacturing industry group, and Various commercial, Real estate, Transportation/
Warehouse, and Service among non-manufacturing industry group. The recent implementation of the
“Corporation Law”, the “Financial Instruments and Exchange Law”, and the “Internal Control Report
System” (so called “J-SOX”) increased the interests in internal auditing. As a result, response to this research
was particularly high.
11
Industry Classification
Unit: Number of organizations
2007 2003 Research year
Industry Group # % # %
Increase /
decrease
Construction 70 4.8 54 3.7 16
Fishing / Food 53 3.6 41 2.8 12
Textile / Paper / Pulp 24 1.6 14 1.0 10
Chemical 92 6.2 65 4.4 27
Medicine 33 2.2 26 1.8 7
Oil / Coal / Mining 10 0.7 7 0.5 3
Rubber 5 0.3 8 0.5 -3
Glass / Soil & Stone 14 1.0 8 0.5 6
Steel 17 1.2 6 0.4 11
Metal 32 2.2 13 0.9 19
Machine 69 4.7 36 2.4 33
Electric equipment 106 7.2 76 5.2 30
Transportation equipment 44 3.0 27 1.8 17
Precision equipment 27 1.8 16 1.1 11
Misc. manufacturing 62 4.2 34 2.3 28
Manufacturing industry
Manufacturing total 658 44.7 431 41.3 227
Trading 76 5.2 88 6.0 -12
Department store / Super market 40 2.7 33 2.2 7
Various commercial 84 5.7 43 2.9 41
Life insurance 17 1.2 13 0.9 4
Non-life insurance 13 0.9 12 0.8 1
Finance 168 11.4 187 12.7 -19
Real estate 51 3.5 15 1.0 36
Transportation / Warehouse 72 4.9 36 2.4 36
Telecom / Advertising 40 2.7 15 1.0 25
Electric / Gas 18 1.2 21 1.4 -3
Services 193 13.1 127 8.6 66
Independent administrative institution /
Special public institution / School
corporation / Association etc.
43 2.9 23 1.6 20
Non-m
anufacturing industry
Non-manufacturing total 815 55.3 613 58.7 202
Grand total 1,473 100.0 1,044 100.0 429
Based on the above result, the next section examines contents of each study of basic research and specific
research.
12
Basic Research 1. Classification of respondents – by Industry Classifications
(Manufacturing versus non-manufacturing)
Industries are classified into 27 types. Although this system of classification is not the same as the 33 industry
classification in the first section of the Tokyo Stock Exchange, the two are very similar. Of the 27 types of
industries, 15 are manufacturing (including construction) industries, and 12 are non-manufacturing industries.
The usable response rate of manufacturing versus non-manufacturing is as follows.
<Number of usable responses>
Unit: Number of organizations
Research year
Type 2007 2003 2000 1997
Manufacturing 658 (44.7%) 431 (41.3%) 475 (54.6%) 504 (55.3%)
Non-manufacturing 815 (55.3%) 613 (58.7%) 395 (45.4%) 407 (44.7%)
The response rate of manufacturing was higher than non-manufacturing until the research conducted in 2000.
However, the response rate of non-manufacturing has been higher since the research conducted in 2003. The
response rate of non-manufacturing was 10.6 percent higher than manufacturing in the research conducted in
2007.
Usable response rate by capital amount is as follows.
<Usable response rate by Capital>
Unit: percent
Capital
(Billion yen)
Research year
Type 2007 2003
Manufacturing 21.0% 28.4% � 0.9
Non-manufacturing 79.0% 71.6%
Manufacturing 45.6% 36.4% 1 � 2.9
Non-manufacturing 54.4% 63.6%
Manufacturing 47.4% 32.1% 3 � 4.9
Non-manufacturing 52.6% 67.9%
Manufacturing 49.2% 42.5% 5 � 9.9
Non-manufacturing 50.8% 57.5%
Manufacturing 54.4% 45.3% 10 � 19.9
Non-manufacturing 45.6% 54.7%
Manufacturing 54.0% 47.4% 20 � 49.9
Non-manufacturing 46.0% 52.6%
Manufacturing 46.6% 44.5% 50 � 99.9
Non-manufacturing 53.4% 55.5%
Manufacturing 57.9% 59.5% 100 � 199.9
Non-manufacturing 42.1% 40.5%
200 � 999.9 Manufacturing 45.3% 51.1%
13
Capital
(Billion yen)
Research year
Type 2007 2003
Non-manufacturing 54.7% 48.9%
Manufacturing 34.3% 35.3% 1,000 �
Non-manufacturing 65.7% 64.7%
In the research conducted in 2007, the response rate of non-manufacturing industry was higher than
manufacturing industry except for capital amount between 10 billion yen and 19.9 billion yen, between 20
billion yen and 49.9 billion yen, and between 100 billion yen and 199.9 billion yen. Please keep in mind that
the response rate of manufacturing was smaller than non-manufacturing except for these three capital ranges.
The response rate of manufacturing in capital range from 100 billion yen to 199.9 billion yen was higher than
non-manufacturing, which was consistent with the results of the research conducted in 2003. The response rate
of manufacturing in capital range from one billion yen to 99.9 billion yen increased.
The response rate of capital amount less than 3 billion yen organization increased.
Unit: Number of organizations
2007 2003 Research year
Capital (Billion yen) # % # %
� 0.9 210 14.7 67 6.6
1 � 2.9 193 13.5 118 11.6
The response rate of non-manufacturing in capital range less than five billion yen was higher than
manufacturing. The response rate of manufacturing in capital range between 10 billion yen and 199.9 billion
yen was higher than non-manufacturing except for capital range between 50 billion yen and 99.9 billion yen.
The response rate of non-manufacturing in capital range over 200 billion yen was higher than manufacturing
because non-manufacturing industries include Finance, Transportation / Warehouse, Telecom / Advertising,
Electric / Gas, and Services.
Regarding classification by sales amount, while 78 organizations out of the 168 organizations in Finance
industry group responded sales amount, 53.6 percent did not respond. Similarly, 53.5 percent in Independent
administrative institution / Special public institution / School corporation / Association etc. industry group did
not respond to the sales amount question.
Regarding classification by capital amount, of the total 1,323 respondents, 609 (46.0%) were in manufacturing
industry and 714 (54.0%) were in non-manufacturing industry. Sixteen (1.2%) of “less than one billion yen”
capital respondents were primarily in Service industry organizations.
Regarding classification by the number of employees, 656 organizations (45.1%) out of the 1,454
organizations which responded to this question were in manufacturing industry. Fifty-four point three percent
of the 1,454 respondents had fewer than 1,001 employees. The necessity of an internal audit is understood
widely and has been paid attention.
14
2. Classification of respondents – by Capital
Forty-two organizations did not respond on capital amount. Of those, 17 were in Independent administrative
institution / Special public institution / School corporation / Association etc. industry group and six were in
Services industry group.
<Number and usable response rate by Capital >
Unit: Number of organizations
In comparison to the research conducted in 2000, the response from less than one billion yen capital
organizations increased by 143 organizations (313%), which was 14.7 percent of the total. The responses from
capital range between one billion yen and 2.9 billion yen organizations also increased by 75 organizations
(164%). Hence, 28.2 percent of respondents’ capital amount is less than three billion yen.
2007 2003 2000 1997 Capital
(Billion yen) # % # % # % # %
� 0.9 210 14.7 67 6.6 146 16.8 157 17.2
1 � 2.9 193 13.5 118 11.6 168 19.3 172 18.9
3 � 4.9 116 8.1 84 8.3 87 10.0 113 12.4
5 � 9.9 189 13.2 146 14.4 143 16.4 139 15.3
10 � 19.9 195 13.6 128 12.6 100 11.5 118 13.0
20 � 49.9 202 14.1 156 15.4 109 12.5 102 11.2
50 � 99.9 118 8.2 110 10.9 51 5.9 58 6.4
100 � 199.9 76 5.3 74 7.3 32 3.7 43 4.7
200 � 999.9 97 6.8 88 8.7 18 2.1 - -
1,000 � 35 2.4 17 1.7 - - - -
15
3. Classification of respondents – by Sales
It is not easy to estimate size of the organization only from capital amount and the number of employees.
Therefore, sales amount was added to the research from 2003. One hundred and forty-four organizations did
not respond on sales amount. Of the 1,329 usable responses, 652 were in manufacturing industry and 677
were in non-manufacturing industry.
Sales amount of manufacturing industry was relatively bigger than non-manufacturing industry. Four
organizations (0.3%) in manufacturing and 20 organizations (1.5%) in non-manufacturing had less than one
billion yen sales. Eighty-seven point one percent of respondents had 10 billion yen or more sales irrespective
of industry group.
Unit: Number of organizations
2007 2003 Type Sales
(Billion yen) # % # %
1 � 19.9 132 20.2 85 20.1
20 � 49.9 167 25.6 105 24.8
50 � 199.9 204 31.3 132 31.2
Manufacturing
200 � 145 22.2 101 23.9
1 � 19.9 192 28.4 176 31.7
20 � 49.9 141 20.8 115 20.7
50 � 199.9 181 26.7 143 25.7
Non-manufacturing
200 � 143 21.1 116 20.9
In comparison to the research conducted in 2003, the ratio of sales amount between one billion yen and 49.9
billion yen increased in manufacturing industry group.
16
4. Classification of respondents – by Total Assets
In addition to sales amount in 2003, total asset was added to the research conducted in 2007 in order to
estimate size of the organization more accurately. Five (0.8%) manufacturing industry and 11 (1.5%)
non-manufacturing industry organizations’ total assets were less than one billion yen. These are not included
in the below table. Twenty-two point eight percent of the total respondents had less than 20 billion yen of
total assets.
Unit: Number of organizations
1 � 19.9 20 � 49.9 50 � 199.9 200 � Total Assets
(Billion yen)
Type # % # % # % # %
Manufacturing 110 18.1 153 25.1 192 31.5 149 24.5
Non-manufacturing 175 24.5 132 18.5 167 23.4 229 32.1
17
5. Classification of respondents – by Number of Employees
The number of employees did not include executives but full time employees, part time employees,
temporary workers, and field workers.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Number of Employees # % # % # % # %
� 500 492 33.8 323 31.6 215 24.7 197 21.6
501 � 1,000 297 20.4 210 20.5 187 21.5 187 20.5
1,001 � 2,000 266 18.3 183 17.9 175 20.1 191 21.0
2,001 � 3,000 116 8.0 79 7.7 77 8.9 99 10.9
3,001 � 5,000 105 7.2 98 9.6 90 10.3 91 10.0 5,001 � 10,000 106 7.3 66 6.5 65 7.5 80 8.8
10,001 � 30,000 49 3.4 50 4.9 51 5.9 56 6.1
30,001 � 100,000 19 1.3 11 1.1 9 1.0 10 1.1
100,000 � 4 0.3 2 0.2 1 0.1 - -
While the response rate of organizations which higher capital has been increasing, the response rate of
organizations with fewer than 1,000 employees was 54.3 percent. This shows that the internal audit is not only
being conducted in large organizations but also in smaller ones.
The response rate of organizations that have less than 5o1 employees increased by 12.2 percent in comparison
to the research conducted in 1997.
18
Specific Research
<Internal Audit>
1. Auditable entities (Table 1)
From the viewpoint of the independence of internal auditors, it is best if internal auditors can audit any
entities within the organization and address any problems or concerns that arise. In other words, it is
considered most desirable if internal auditors can audit head offices, domestic business offices, overseas
business offices, domestic subsidiaries / affiliates, and overseas subsidiaries / affiliates. The number and ratio
of organizations that did not have any restrictions on auditable entities increased, as shown in the following
table.
Research year 2007 2003 2000 1997
Number of organizations (%) 266 (18.1%) 101 (9.8%) 114 (13.1%) 115 (12.9%)
Some organizations excluded certain entities from the auditable entities. The number of organizations that
excluded the overseas business offices and the overseas subsidiaries / affiliates from the auditable entities is
as follows.
Research year 2007 2003 2000 1997
Number of organizations (%) 388 (26.4%) 331 (32.0%) 263 (30.3%) 275 (30.8%)
The number of organizations which excluded the overseas business offices, the overseas subsidiaries /
affiliates, and the domestic subsidiaries / affiliates from the auditable entities is as follows.
Research year 2007 2003 2000 1997
Number of organizations (%) 415 (28.2%) 364 (35.3%) 306 (35.2%) 334 (37.3%)
The number of organizations which included the overseas business offices and / or the overseas subsidiaries /
affiliates in the auditable entities is as follows.
Research year 2007 2003 2000 1997
Number of organizations (%) 572 (38.9%) 255 (24.7%) 252 (29.1%) 231 (25.8%)
The number of organizations which included the domestic and / or the overseas subsidiaries / affiliates in the
auditable entities is as follows.
Research year 2007 2003 2000 1997
Number of organizations (%) 1,032 (70.2%) 660 (63.8%) 547 (63.1%) 551 (61.4%)
The number of organizations which excluded the head offices from the auditable entities is as follows.
Research year 2007 2003 2000 1997
Number of organizations (%) 145 (9.9%) 164 (15.9%) 137 (15.8%) 175 (19.5%)
19
2. Positioning of the Internal Audit Activity (IAA) in the organization (Tables 2 to 29)
(1) Positioning of the IAA by the number of employees (Table 2)
There are three major positioning of the IAA as shown in the following table.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Positioning # % # % # % # %
1 Direct report to Top
� President 1,115 76.8 688 66.9 604 69.7 611 67.1
� Board 52 3.6 48 4.7 9 1.0 - -
� Other executives 116 8.0 123 12.0 81 9.4 122 13.4
2 Belong to a specific department 51 3.5 57 5.5 81 9.4 51 5.6
3 Same level as other departments 79 5.4 90 8.8 78 9.0 96 10.6
Regarding group one, 88.4 percent of the IAA reported directly to top management irrespective of
industry, capital, and the number of employees. This has been increasing notably over past ten years. It
was 49.9 percent in the research conducted in 1988.
In terms of industry group, Construction, Fishing / Food, Textile /Paper / Pulp, Chemical, Oil / Coal /
Mining, Rubber, Metal, Machine, Electric equipment, Precision equipment, Misc. manufacturing,
Trading, Various commercial, Real estate, and Services industries tended to report directly to top
management. Especially, direct report to top management exceeded 88 percent in Oil / Coal / Mining,
Precision equipment, Trading, and Various commercial industry group.
Regarding group two, while 38 percent of the IAA belonged to a specific department in the research
conducted in 1958, the ratio has been decreasing. It decreased to 5.5 percent in the study of 2003 and 3.5
percent in the study of 2007.
Regarding group three, the ratio has been decreasing and there were 79 organizations (5.4%) in the
research conducted in 2007. The ratio was relatively higher in non-manufacturing industry group.
Construction, Transportation equipment, Life insurance, Telecom / Advertising, and Electric / Gas
industry group showed relatively higher ratio.
The number of organizations which the IAA reported directly to the kansayaku is as follows.
Research year 2007 2003 2000 1997
Number of organizations (%) 5 (0.3%) 7 (0.7%) 11 (1.3%) 21 (2.3%)
Although cooperation and coordination between the IAA and the kansayaku is important, the ratio of
direct report to the kansayaku has been decreasing. From the view points of interpretation of the
Corporation Law, it is not desirable if the IAA reports directly to the kansayaku.
(2) Positioning of the IAA by capital amount (Table 3)
The ratio of positioning of the IAA by capital amount is as follows.
Unit: percent
20
Positioning
Capital
(Billion yen)
Direct report to
President
Direct report to
Board
Direct report to
Senior E
xecutive
Direct report to
Audit C
omm
ittee
Direct report to
Kansayaku
Direct report to
Executive O
fficer
Sam
e level as other
departments
Belong to a
specific
department
Others
� 0.9 81.3 1.5 3.9 1.0 - 1.0 6.9 4.4 -
1 � 2.9 82.5 2.6 6.9 0.5 - - 3.7 3.7 -
3 � 4.9 88.6 0.9 4.4 1.8 0.9 - 0.9 1.8 0.9 5 � 9.9 79.5 2.2 5.9 0.5 0.5 1.1 3.8 5.4 1.1
10 � 19.9 82.0 2.6 8.2 - 0.5 - 3.6 3.1 - 20 � 49.9 71.6 6.5 11.9 - - 1.5 5.0 3.0 0.5
50 � 99.9 66.9 5.9 13.6 1.7 - 2.5 6.8 2.5 -
100 � 199.9 71.1 5.3 7.9 - - 3.9 10.5 1.3 -
200 � 999.9 57.7 6.2 13.4 1.0 1.0 1.0 14.4 4.1 1.0
1,000 � 52.9 8.8 11.8 2.9 - 8.8 8.8 5.9 - Average Ratio 76.5 3.6 8.2 0.7 0.3 1.2 5.6 3.5 0.4
The following is a summary of the above table by major positioning.
Unit: Number of organizations
Research year 2007 2003
�¥9.9 bil.
(647 Organization)
¥10 bil. �
(691 Organization)
�¥9.9 bil.
(415 Organization)
¥10 bil. �
(573 Organization)
Capital
Positioning
# % # % # % # %
1 Direct report to Top
� President 569 82.3 510 70.8 321 77.3 339 59.2
� Board 13 1.8 38 5.3 15 3.6 33 5.6
� Other executives 37 5.4 79 11.0 26 6.3 93 16.2
2 Belong to a specific department 29 4.2 50 6.9 21 5.1 64 11.2
3 Same levels other departments 28 4.0 22 3.0 25 6.0 31 5.4
(3) Positioning of the IAA by the number of employees (Table 4)
Positioning of the IAA by the number of employees is as follows.
Unit: percent Positioning
Number of employees
Direct report to
President
Direct report to
Board
Direct report to
Senior E
xecutive
Direct report to
Audit C
omm
ittee
Direct report to
Kansayaku
Direct report to
Executive O
fficer
Sam
e level as other
departments
Belong to a specific
department
Others
�500 82.8 1.6 4.6 1.2 0.4 0.6 3.7 4.6 0.4
501�1,000 81.2 3.1 7.5 0.3 - 0.3 3.8 2.7 1.0
1,001�2,000 77.1 5.7 7.3 0.4 0.8 0.8 4.6 3.4 -
2,001�3,000 66.1 4.3 12.2 - - 2.6 11.3 3.5 - 3,001�5,000 69.5 6.7 15.2 1.9 1.0 1.0 3.8 1.0 - 5,001�10,000 69.5 3.8 9.5 - - 2.9 10.5 3.8 -
10,001�30,000 57.1 4.1 10.2 2.0 - 6.1 14.3 6.1 -
21
Positioning
Number of employees
Direct report to
President
Direct report to
Board
Direct report to
Senior E
xecutive
Direct report to
Audit C
omm
ittee
Direct report to
Kansayaku
Direct report to
Executive O
fficer
Sam
e level as other
departments
Belong to a specific
department
Others
30,001� 59.0 - 27.2 - - 4.5 9.0 - - Average Ratio 76.9 3.5 8.0 0.8 0.3 1.2 5.4 3.6 0.3
(4) Name of the IAA (Table 5)
As the name of the IAA, “audit”, “examination”, “inspection”, and “corporate planning” have been used
by many organizations. However, the research conducted in 2007 showed that majority used “audit”.
The historical data since 1991 is as follows.
Unit: Number of organizations
Research Year
Name 2007 2003 2000 1997 1994 1991
Audit 663 527 494 532 556 469
Internal Audit 436 179 157 128 131 14
Operational Audit 76 51 27 11 17 -
Management Audit 54 27 14 - - -
Compliance 17 - - - - -
Audit Group 15 - - - - -
Examination 15 22 14 16 16 13
Inspection 14 57 47 57 53 23
Corporate Planning 13 20 36 16 - -
Internal Control 10 - - - - -
CSR 10 - - - - -
Administration 9 13 11 - - -
Risk Management 6 - - - - -
Audit section in President’s Office 4 8 23 18 21 16
Audit section in Accounting 4 10 10 - - -
Legal Audit 3 - - - - -
Business Management 3 - - - - -
Operation Inspection 1 2 6 - - -
Inspector’s Office - 8 8 - - -
Others 104 87 7 - - -
(5) Number of auditors who conduct only IAA (Tables 6 to 8)
The historical data since 1997 is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Number of auditors # % # % # % # %
1 (0�3) 333 24.0 276 26.9 303 35.1 611 67.1
2 319 23.0 202 19.7 161 18.6 - -
3 165 11.9 132 12.9 111 12.8 - -
4 (4�6) 132 9.5 100 9.8 68 7.9 164 18.0
22
2007 2003 2000 1997 Research year
Number of auditors # % # % # % # %
5 72 5.2 51 5.0 49 5.7 - -
6 60 4.3 54 5.3 38 4.4 - -
7 (7�9) 48 3.5 38 3.7 27 3.1 52 5.7
8 31 2.2 13 1.3 13 1.5 - -
9 20 1.4 18 1.8 12 1.4 - -
10�14 (10�15) 87 6.3 45 4.4 28 3.2 28 3.1
15�24 (16�25) 55 4.0 43 4.2 28 3.2 35 3.8
25�49 (26�50) 43 3.1 42 4.1 21 2.4 16 1.8
50� (51�) 22 1.6 11 1.1 5 0.6 4 0.4
(* Number in ( ) in “Number of auditors” is the classification used in the 1997 study.)
Generally speaking, the number of internal auditors has been increasing. In the research conducted in
2007, 58.9 percent of the respondents had one to three auditors and 77.9 percent had one to six auditors
who only perform IAA. The number of organizations which had more than 25 auditors were one
organization (2.0%) in Fishing / Food industry group, seven organizations (6.8%) in Electric equipment,
one organization (2.6%) in Transportation equipment, five organizations (7.0%) in Trading, five
organizations (31.3%) in Life insurance, six organizations (46.2%) in Non-life insurance, 28
organizations (17.3%) in Finance, four organizations (6.3%) in Transportation / Warehouse, one
organization (2.8%) in Telecom / Advertising, five organizations (29.4%) in Electric / Gas, one
organization (0.5%) in Service, and one organization (2.6%) in Independent administrative institution /
Special public institution / School corporation / Association etc. Finance industry group was the top in
terms of the number of organizations which had more than 25 auditors who perform only IAA, and
Non-life insurance industry group was the top in terms of ratio.
Table 7 shows that the number of auditors is generally small in small capital organizations. In table 8, we
can see that the number of auditors is generally small in organizations with a small number of employees.
The relationship between the number of auditors and number of employees is shown on the following
page.
23
24
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
The number of
Employees
# % # % # % # % # % # % # % # % # % # % # % # % # % #
� 500 201 45.7 120 27.3 45 10.2 34 7.7 13 3.0 7 1.6 5 1.1 3 0.7 2 0.5 8 1.8 2 0.5 - - - - 440
501 � 1,000 72 25.7 93 33.2 33 11.8 34 12.1 14 5.0 12 4.3 3 1.1 4 1.4 3 1.1 9 3.2 3 1.1 - - - - 280
1,001 � 2,000 35 13.6 61 23.6 48 18.6 35 13.6 16 6.2 16 6.2 6 2.3 6 2.3 3 1.2 12 4.7 13 5.0 7 2.7 - - 258
2,001 � 3,000 10 8.8 23 20.4 15 13.3 10 8.8 8 7.1 8 7.1 11 9.7 4 3.5 1 0.9 5 4.4 8 7.1 10 8.8 - - 113
3,001 � 5,000 7 6.7 7 6.7 15 14.4 6 5.8 13 12.5 7 6.7 8 7.7 6 5.8 3 2.9 17 16.3 4 3.8 8 7.7 3 2.9 104
5,001 � 10,000 5 4.8 8 7.7 8 7.7 6 5.8 4 3.8 5 4.8 12 11.5 3 2.9 7 6.7 22 21.2 12 11.5 7 6.7 5 4.8 104
10,001 � 30,000 - - 1 2.0 1 2.0 3 6.1 4 8.2 2 4.1 2 4.1 5 10.2 1 2.0 9 18.4 7 14.3 7 14.3 7 14.3 49
30,001 � 100,000 1 5.3 - - - - 1 5.3 - - 2 10.5 - - - - - - 4 21.1 4 21.1 2 10.5 5 26.3 19
100,000 � - - - - - - - - - - - - - - - - - - - - 1 25.0 2 50.0 1 25.0 4
Total (# of Organizations) 331 313 165 129 72 59 47 31 20 86 54 43 21 1,371
Ratio (%) 24.1 22.8 12.0 9.4 5.3 4.3 3.4 2.3 1.5 6.3 3.9 3.1 1.5
� Not applicable: 19 organizations
� No responses: 83 organizations
25
(6) Number of auditors who are also assigned non-IAA (Table 9)
This is the first time to study on the number of auditors who are also assigned non-IAA. Four hundred
and seventeen respondents (28.3%) had auditors who are also assigned non-IAA. In terms of industry
group, 51 organizations in Service, 35 organizations in Finance, 33 organizations in Electric
equipment, 31 organizations in Chemical, 27 organizations in Construction, and 25 organizations in
Machine had such auditors. Particularly, in Finance, there was one organization which had more than
50 auditors who are also assigned non-IAA, and there was one organization in Fishing / Food and
Metal, which had 25 to 49 auditors who are also assigned non-IAA.
(7) Number of auditors who are non-permanent employees (Table 10)
This is a study of part-time and temporary employees in the IAA. Of the 1,473 total usable responses,
198 respondents (13.4%) had non-permanent employees. However, it is not known whether these
non-permanent employees were auditors or audit administration staff. In terms of industry group, 15
organizations (14.2%) were in Electric equipment, 44 organizations (26.2%) were in Finance, 18
organizations (9.3%) were in Service.
(8) Other activities which the IAA is assigned (Table 11)
This is a study to confirm organizational independence of the IAA, which is one of the most important
aspects for the IAA.
The historical data since 1997 is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Other activities assigned # % # % # % # %
Internal audit only 913 62.2 701 67.1 539 62.6 518 56.9
Accounting / Finance 107 7.3 38 3.6 16 1.9 16 1.8
General Affairs / Human Resources 83 5.7 33 3.2 17 2.0 15 1.6
Legal / Compliance 59 4.0 78 7.5 18 2.1 15 1.6
Administration (Budget) 57 3.9 9 0.9 2 0.2 6 0.7
Kansayaku / Audit Committee staff 50 3.4 140 13.4 190 22.1 233 25.6
Planning / PR 41 2.8 46 4.4 36 4.2 53 5.8
Information System (Information security) 40 2.7 5 0.4 - - - -
Sales / Marketing 37 2.5 - - - - - -
Risk Management 30 2.0 - - - - - -
Environment Management / ISO 29 2.0 14 1.2 - - - -
Whistle blowing 21 1.4 - - - - - -
Affiliate company management 21 1.4 6 0.5 - - - -
Promotion of Internal Controls 21 1.4 - - - - - -
Materials / Purchasing 18 1.2 - - - - - -
Production 18 1.2 - - - - - -
Research / Development 12 0.8 - - - - - -
President’s office / Secretary office 10 0.7 - - - - - -
Advertisement 3 0.2 - - - - - -
Regulatory relations 3 0.2 - - - - - -
Asset evaluation / Credit control - - 15 1.3 - - - -
Improvement suggestion - - 32 3.1 39 4.5 37 4.1
26
2007 2003 2000 1997 Research year
Other activities assigned # % # % # % # %
External auditors relations - - 33 3.2 29 3.4 44 4.8
Others 6 0.4 49 4.1 6 0.7 - -
The ratio of assigned “accounting / finance”, “general affairs / human resources”, “administration
(budget)” generally increased. In relation to the recent implementation of the Financial Instruments
and Exchange Law and the Internal Control Report System (so called “J-SOX), responses in the
research conducted in 2007 included new activities such as “internal control project” and “J-SOX”.
(9) Average years of experience as internal auditors (Tables 12 to 13)
The historical data since 1997 is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Experiences # % # % # % # %
Less than 3 years 907 62.6 583 56.2 452 52.0 442 48.7
3�less than 5 years 404 27.9 310 29.9 276 31.8 331 36.5
5�less than 10 years 118 8.1 112 10.8 109 12.5 115 12.7
10 years or more 21 1.4 32 3.1 32 3.7 20 2.2
The ratio of “less than 3 years” has been increasing. Table 13 showed the average years of experience
as internal auditors by the number of employees of the organizations. More than 60 percent of the
organizations which have less than 3,001 employees responded that the average years of experience is
less than three years. Fifty percent-level or less of the organizations which have more than 3,000
employees responded that the average years of experience is less than three years.
(10) Training of internal audit (Table 14)
The historical data whether training is conducting is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Training # % # % # % # %
Conducting 1,386 95.1 830 80.8 796 84.1 755 82.9
Not conducting 72 4.9 197 19.2 151 153.9 156 17.1
Majority of respondents conducted internal audit training. Many organizations participated to training
that conducted by outside of their organizations.
(11) Holders of QIA (Qualified Internal Auditor), CIA (Certified Internal Auditor) and other internal audit
related qualifications (Tables 15 to 23)
Tables 15 to 23 are the results of the study of internal audit and related qualification holders. In the
research conducted in 2007, “Qualified Information System Internal Auditor (QISIA)”, “Certified
Financial Internal Auditor�CFIA�, “Certification in Control Self-Assessment (CCSA)”, and “Certified
Financial Services Auditor (CFSA)” were added to the internal audit related qualifications.
According to Table 15, 50.8 percent of respondents did not have internal audit and related qualification
27
holders. Of the 1,460 respondents, 434 organizations (29.7%) had QIA holders and 229 organizations
(15.7%) had CIA holders.
The following is the number of organizations which had QIA holders and CIA holders or both by
industry group.
Unit: Number of organizations
QIA CIA (CIA only) Qualification
Industry 2007 2003 2007 2003 2007 2003
Construction 13 4 5 - 2 -
Fishing / Food 26 16 6 2 - 1
Textile / Paper / Pulp 6 1 1 - - -
Chemical 31 16 10 2 3 1
Medicine 19 15 12 3 1 1
Oil / Coal / Mining 6 2 3 1 1 1
Rubber 1 2 2 - 1 -
Glass / Soil & Stone 7 2 1 - - -
Steel 4 2 2 - - -
Metal 6 4 - - - -
Machine 16 4 10 2 5 1
Electric equipment 37 21 19 9 4 3
Transportation equipment 12 7 7 1 1 -
Precision equipment 8 4 4 - 1 -
Misc. manufacturing 15 6 4 2 1 -
Trading 19 21 9 6 2 -
Department store / Super market 11 8 3 2 - -
Various commercial 18 7 8 1 4 -
Life insurance 6 4 11 7 3 5
Non-life insurance 4 5 8 4 1 -
Finance 16 18 32 14 7 11
Real estate 17 1 7 - 2 -
Transportation / Warehouse 23 9 11 1 1 1
Telecom / Advertising 23 1 8 - 1 -
Electric / Gas 11 11 9 2 3 -
Services 71 42 33 5 10 2
Independent administrative institution / Special
public institution / School corporation /
Association etc.
8 1 4 - 2 -
Total (# of Organizations) 434 234 229 64 56 27
The numbers of organizations which had QIA holders increased notably except for Trading and
Finance industry group. The numbers of organizations which had CIA holders also increased
dramatically.
Tables 16 and 17 are summary of the number of QIA holders by industry and by the number of
employees. Tables 19 and 20 are summary of the number of CIA holders by industry and by the
number of employees.
28
(12) Prior experiences of internal auditors (Table 24)
This study analyzed the trend that internal auditors are transferred from other functions / departments
within the organization. (Multiple answers were allowed.) The historical data is as follows.
Unit: percent
Research year
Prior experiences 2007 2003 2000 1997
Sales / Marketing 47.9 49.7 41.3 39.5
Administration 42.9 29.5 23.1 23.1
Accounting / Finance 39.2 42.6 44.9 50.8
General Affairs / Human Resources 31.6 24.3 21.7 25.0
Information System 22.3 18.6 12.2 14.4
Internal Audit from the begging 17.1 4.0 3.8 3.8
Production 14.0 8.8 9.0 7.6
Technology / Development 10.7 12.8 15.7 10.2
Materials / Purchasing 9.2 8.1 7.7 8.3
Parent / Affiliate company 9.4 2.4 - -
Others 7.5 8.4 0.5 8.0
Because many organizations have been facing competitive market, “sales / marketing” has been
increasing since 1997. Reflecting importance of operational audits, “administration” also has been
increasing. In contrast, “accounting / finance” has been decreasing over the past 10 years.
(13) Special considerations when internal auditors are transferred (Table 25)
This study is to understand whether experience as an internal auditor is taken into considerations when
the auditor is transferred to other functions / departments within the organization. The historical data is
as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Considerations # % # % # % # %
Take internal audit experience into
considerations 734 55.1 457 50.6 329 39.7 362 43.2
Not take internal audit experience
into considerations 597 44.9 446 49.4 500 60.3 476 56.8
The ratio of “experience as an internal auditor is taken into consideration” has been increasing and the
results of 2007 study showed the highest percentage.
(14) Establishment and approval of the internal audit charter and the procedure manual (Tables 26 to 29)
As the historical data below showed, establishment of the internal audit charter became common
practice.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Internal Audit Charter # % # % # % # %
Established 1,444 98.7 979 96.5 842 96.8 869 95.5
Not established 19 1.3 35 3.5 28 3.2 41 4.5
29
In addition to the charter, the procedure manual is also established as a separate document or as a part
of the charter. The historical data is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Structure # % # % # % # %
Charter only 582 39.8 383 37.8 408 46.9 418 45.9
Both Charter and Procedure manual 823 56.3 581 57.3 421 48.4 451 49.6
Procedure Manual only 39 2.7 15 1.5 13 1.5 - -
Most of (95.2%) the internal audit charter was approved by authoritative body such as “president”
(39.9%), “executive committee” (10.2%), and “board” (45.1%). On the other hand, 45.1 percent of the
procedure manual was approved by the CAE.
Table29 is a study to confirm whether the internal audit charter and the procedure manual adhered to
the Standards. The result of the study in the research in 2007 and 2003 is as follows.
Unit: Number of organizations
2007 2003 Research year
Standards # % # %
Adhered 933 70.0 544 57.6
Not adhered 399 30.0 401 42.4
Industry groups which showed higher percentage to adhere the Guidance of the Standards for Japan,
which is an interpretation of the Standards to accommodate Japanese governance systems, or the
Standards were Textile / Paper / Pulp, Chemical, Medicine, Oil / Coal / Mining, Rubber, Glass / Soil &
Stone, Electric equipment, Precision equipment, Various commercial, and Non-life insurance.
Especially, Textile / Paper / Pulp, Chemical, and Glass / Soil & Stone showed hither percentage as
same as the result of the research conducted in 2003.
Two hundred and thirty-three organizations (17.5%) adhered to the Standards. Of those, Rubber, Life
insurance, and Non-life insurance industry group showed higher percentage.
30
3. Internal Audit Plan (Tables 30 to 42)
(1) Conducting risk assessment by the IAA (Table 30)
The historical data whether the IAA conducts business risk or control risk assessment is as follows.
Unit: Number of organizations
2007 2003 2000 Research year
Risk assessment # % # % # %
Conducting 889 61.2 495 49.1 368 42.3
Not conducting 563 38.8 513 50.9 502 57.7
Risk assessment is necessary when the IAA determine:
a) audit universe at annual audit planning
b) engagement objectives
c) risk approach for each engagement
As shown above, the ratio of the IAA which conducts risk assessment has been increasing.
(2) Timing of risk assessment (Table 31)
When the IAA conducts risk assessment, there are two types. One is to evaluate risk assessment which
is conducted by risk assessment functions / departments, and the other is risk assessment which is
conducted by the IAA to make annual audit plan (i.e. the IAA does not act as risk assessment
functions).
This study is based on the assumption that the IAA does not act as risk assessment functions.
Unit: Number of organizations
2007 2003 Research year
Timing of risk assessment # % # %
Annual audit planning 550 62.7 306 61.8
Each engagement planning 424 48.3 271 54.7
After each engagement completed 213 24.3 - -
Others 15 1.7 22 4.4
Many organizations conducted risk assessment at the annual audit planning and at the each
engagement planning. It is important to conduct risk assessment after the each engagement if the
engagement was conducted based on the risk assessment. However, risk assessment after completion
of the each engagement is not popular yet.
(3) Sources to determine audit universe (Table 32)
The ratio of the following five sources to determine audit universe has still been high.
Unit: percent
Research year
Sources to determine audit universe 2007 2003 2000 1997
From key management objectives 75.5 82.6 75.8 75.1
Review prior working papers / audit reports 62.0 54.4 42.9 37.5
Based on results of risk assessment 48.5 30.9 15.0 -
Consult with top management 44.6 45.4 45.7 42.9
31
Research year
Sources to determine audit universe 2007 2003 2000 1997
Consult with other departments 22.8 30.7 27.3 27.0
From the research conducted in 2007, the following items were added to the sources.
- Consult with the kansayaku / audit committee (464 organizations, 31.8%)
- Based on the “Practice Standards for Management Assessment and Audit concerning Internal
Control Over Financial Reporting” (323 organizations, 22.2%)
- From the results of self-check / CSA (208 organizations, 14.3%)
- Based on the “Inspection Manual of Financial Services Agency” (168 organizations, 11.5%)
The historical data of the rest of items in Table 32, which are not included in the above nine items, is as
follows.
Unit: percent
Research year
Sources to determine audit universe 2007 2003 2000 1997
Review meeting minutes / approval requests 19.1 18.2 14.5 11.9
Based on on-site review 19.0 24.0 17.4 13.7
Attend internal meetings 18.3 18.0 12.7 11.0
Rumor / letters / whistle-blowing 14.2 9.6 4.6 3.7
Review business process flowchart 12.4 15.4 10.4 10.2
Examine management information data 10.2 14.4 12.4 11.9
Select large expenditure departments 6.8 9.1 6.9 5.4
Benchmark comparison to competitors 2.0 4.5 4.4 3.3
“Review meeting minutes / approval request” and “attend internal meetings” have been increasing
during past 10 years.
(4) Method to determine audit universe (Table 33)
The historical data of five major methods to determine audit entities is as follows.
Unit: percent
Research year
Method to determine audit universe 2007 2003 2000 1997
Selected by CAE and supported by top management 74.4 70.3 56.0 58.2
Determined by Internal Audit Activity 33.3 32.8 42.2 40.6
Instructed by top management 23.1 14.9 13.0 12.1
Discussed with Kansayaku / Audit Committee 18.9 - - -
Requested by other departments 7.4 8.9 5.1 4.2
From the research conducted in 2007, “discussed with the kansayaku / audit committee” (276
organizations, 18.9%) was added. This ratio was higher than “requested by other departments”. As
multiple answers were allowed to this question, the total exceeded 100 percent. The highest increase
from the research conducted in 2003 was “instructed by top management", and gradual increase was
“selected by the CAE and supported by top management".
(5) Development and format of internal audit checklist (Tables 34 to 35)
32
Development of standardized and/or a unique audit checklist is common practice. The historical data
is as follows.
Unit: percent
Research year
Audit checklist 2007 2003 2000 1997
Developing 88.3 89.0 89.3 88.2
Not developing 11.7 11.0 10.7 11.7
Format of the standardized checklist is as follows.
Unit: percent
Research year
Format 2007 2003 2000 1997
List engagement objectives 34.7 35.8 47.5 51.0
List engagement objectives and engagement work program 11.8 14.5 17.1 14.9
List engagement objectives, engagement work program and
findings 33.6 27.6 23.0 31.5
Point rating system based on an importance of engagement
objectives 6.1 8.9 5.9 7.5
List engagement objectives, engagement work program and
findings, and add point rating system 13.1 15.9 11.8 15.1
“List engagement objectives” has been decreasing. “List engagement objectives, engagement work
program and findings” increased to 33.6 percent while it was 20 percent-level in the research
conducted in 2000 and 2003.
(6) Classification, length, and approval of internal audit plan (Tables 36 to 42)
Almost all (98.8 percent) of the organizations developed some form of audit plan. Because only
long-term plan”, “annual plan and “engagement plan” were examined in the research conducted in
2007, historical comparisons are not possible. The result of the research conducted in 2007 is as
follows. (Multiple answers were allowed to this question.)
Unit: Number of organizations
Audit plan development # %
Long-term (exceeding one year) 231 15.9
Annual plan 1,351 93.2
Engagement plan 911 62.8
As the study showed, 84.1 percent of the organizations did not develop long-term audit plan.
Tables 37, 39, and 41 are length (frequency) of audit plans.
Length of long-term plan is as follows.
Unit: percent
Research year
Length 2007 2003 2000
2 years 7.0 11.1 16.2
3 years 65.5 80.2 71.5
4 to 5 years 26.2 7.9 3.8
33
Research year
Length 2007 2003 2000
Others 1.3 0.8 1.5
Length of annual plan is as follows.
Unit: percent
Research year
Length 2007 2003 2000
1 year 98.2 96.9 97.5
6 months 1.6 3.1 1.9
Others 0.2 - 0.6
Frequency to prepare engagement plan is as follows.
Unit: percent
Research year
Frequency 2007 2003 2000 1997
Each engagement 64.4 66.1 66.3 32.3
1 month 9.6 3.6 1.9 8.2
3 months 4.5 8.9 6.5 6.0
6 months 7.3 15.7 20.4 13.4
1 year 13.6 4.8 3.0 40.2
Others 0.6 0.7 1.9 -
Tables 38, 40, and 42 are study of approval of audit plans.
Approval of long-term plan is as follows.
Unit: percent
Research year
Approved by 2007 2003 2000
President 55.5 59.1 71.7
Board 18.9 12.6 3.9
Executive Committee 4.7 4.7
Management Committee 7.5
5.5 8.7
Executive in charge of audit 11.9 11.8 3.1
Kansayaku or Audit Committee 0.9 4.7 6.3
CAE 2.2 4.7 6.3
Others 3.1 1.6 1.6
Most (93.8%) of long-term audit plans were approved by “president”, “board”, “executive committee”,
“management committee, or “executive in charge of audit”. This means long-term audit plan is not
only information within the IAA but also formal document for the organization.
Approval of engagement plan is as follows.
Unit: percent
Research year
Approved by 2007 2003 2000 1997
34
Research year
Approved by 2007 2003 2000 1997
President 37.1 38.3 41.0 48.7
Board 2.4 1.6 0.5 0.4
Executive Committee 1.6 1.4 1.0
Management Committee 1.5
0.3 0.3 1.0
Executive in charge of audit 7.5 10.8 12.4 2.2
Kansayaku 0.7 - 15.1
Audit Committee 1.0
0.2 - -
Executive Officer 0.3 0.3 - -
CAE 49.2 45.8 43.6 30.2
Others 0.9 0.3 0.7 1.4
The CAE is the highest, the president is the next.
35
4. Performing Internal Audit (Tables 43 to 57)
(1) Compliance with the Standards (Table 43)
There are “The International Standards for the Professional Practices of Internal Auditing (the
Standards)” and “Guidance of the Standards for Japan” that is an interpretation of the Standards to
accommodate Japanese governance systems. The historical data whether the IAAs comply with the
Standards is as follows:
Unit: Number of organizations
2007 2003 2000 Research year
Standards # % # % # %
Complying 320 22.0 165 16.2 594 69.0
Trying to comply 930 63.9 586 57.6 248 28.8
Not paying attention at all
(2003 and 2000: Not complying) 205 14.1 267 26.2 19 2.2
“Complying” and “trying to comply” dramatically increased from the research conducted in 2003.
The ratio of “not paying attention at all” was almost half of the result in 2003 study.
By industry group, Rubber (80.0%), Life insurance (47.1%), Non-life insurance (38.5%), and
Telecom / Advertising (38.5%) showed high percentage in “complying”. Metal (31.3%), Textile /
Paper / Pulp (25.0%), Finance (24.7%), Special public institution etc. (23.3%), Construction (18.8%),
Steel (17.6%), Trading (17.1%), Electric / Gas (16.7%), and Machine (16.2%) showed high
percentage in “not paying attention at all”. While many organizations in Finance industry group
responded “complying” or “trying to comply", one fourth responded “not paying attention at all”.
(2) Type of internal audit engagements (Table 44)
This is a study to examine which type of engagement is more focused on either operational audits or
financial audits. “ Financial audit only” has been decreasing historically, but it slightly (12
organizations, 0.8%) increased in the research conducted in 2007. However, “financial audit only” is
very exceptional. Two organizations in each Electric and Service industry group, and one organization
in Construction, Chemical, Steel, Machine, Misc. manufacturing, Trading, Finance, and Real estate
responded they conducted “financial audit only”.
While most of the organizations performed both financial and operational audit, some performed
operational audit only. Although the research conducted in 2007 did not include a question to ask the
reason why financial audit was not performed, the following is a historical data to this question for
your reference.
Unit: Number of organizations
1997 1994 1991 Research year
Reason # % # % # %
Leave financial audit entirely to external auditors
(CPAs) 226 24.8 166 17.6 123 15.4
Financial audit is included in operational audit 128 14.1 147 15.6 151 18.9
The next question is “when organizations perform both financial and operational audit, which is
primarily focused on?” The historical data is as follows.
36
Unit: percent
Research year
Weight 2007 2003 2000 1997
Primarily operational audit 45.3 42.9 47.2 35.2
Same weight on both operational and financial audits 21.2 20.0 21.7 18.9
Primarily financial audit 3.7 5.0 7.1 6.5
Seventy point two percent performed both financial and operational audit. The ratio increased 2.3
percent from the study conducted in 2003. Notable increase from 2003 to 2007 is “primarily
operational audit” and “same weight on both operational and financial audit".
(3) Classification of audit entities (Table 45)
This is a study to confirm different perspective to classify audit entities. The historical data is as
follows. (Note: Multiple answers were not requested after the research conducted in 2000.)
Unit: percent
Research year
Classification 2007 2003 2000 1997
By department 59.4 61.0 68.8 65.1
By function 3.8 3.6 4.4 6.4
Both by department and by function 36.7 35.4 - -
Depends on audit theme - - 25.3 29.6
Others - - 1.5
(4) Name on internal audit engagement notice letter (Table 46)
Majority (83.9%) of engagement notice letter’s name was the CAE. This trend has been stable since
the research conducted in 1994. The historical data is as follows.
Unit: percent
Research year
Name on engagement notice letter 2007 2003 2000 1997
CAE 83.9 78.2 84.2 81.6
President 8.0 13.1 7.1 8.3
Executive in charge of audit 3.5 4.5 5.1 6.3
Both President and CAE 1.3 - - -
Both Executive in charge of audit and CAE 1.0 1.4 2.6 3.8
Others 2.2 2.8 1.0 -
(5) Notification of internal audit engagement to audit clients (Tables 47 to 48)
Majority (1,311 organizations, 90.0%) of the organizations performed audits with prior notice and this
is common practice in Japan. However, 145 organizations (10.0%) performed audits without prior
notice (surprise audit). The reason and the historical data are as follows.
Unit: Number of organizations
Research year
Reason 2007 2003 2000 1997
To conduct physical inspection 102 130 - -
To prevent destruction of facts and evidences 100 103 30 3
37
Research year
Reason 2007 2003 2000 1997
To conduct fraud audit 78 73 8 13
To let audit client have sense of tension 73 89 - -
In case of special audit requested by President 11 14 - -
In case of urgency 6 1 - -
The audit is based on rumor / anonymous letter /
whistle-blowing 5 6 - -
To confirm normal operation - 1 1 71
Depends on the number of audit entities - 1 - -
Among 145 organizations which performed audits without prior notice, 100 organizations (71.4%)
responded “to prevent destruction of facts and evidences” and 102 organizations (72.9%) responded
“to conduct physical inspection”.
(6) Order of the importance of the Internal Control Objectives (Table 49)
As the internal control objectives, “reliability of financial reporting”, “compliance with applicable
laws and regulations”, “safeguard of assets”, and “effectiveness and efficiency of operations” are
shown in the “Standard”, the “Practice Standards for Management Assessment and Audit concerning
Internal Control Over Financial Reporting”, etc. This is a study to confirm the order of the importance
of each internal control objective. While previous study conducted in 2003 referred to COSO
framework and responses to accounting frauds such as Enron, the study in 2007 was to confirm
changes to the order of the importance of each objective after implementation of the Financial
Instruments and Exchange Law. The top ten types (4 percent or more in the results in 2007 or 2003)
are as follows.
Unit: percent
Research year
Order of importance 2007 2003
1 Compliance with applicable laws and regulations – Effectiveness and efficiency of operations
– Reliability of financial reporting – Safeguard of assets 12.8 9.5
2 Compliance with applicable laws and regulations – Reliability of financial reporting –
Effectiveness and efficiency of operations –Safeguard of assets 12.6 6.8
3 Compliance with applicable laws and regulations – Reliability of financial reporting
–Safeguard of assets –Effectiveness and efficiency of operations 12.2 16.4
4 Compliance with applicable laws and regulations – Effectiveness and efficiency of operations
–Safeguard of assets – Reliability of financial reporting 10.3 11.0
5 Reliability of financial reporting –Compliance with applicable laws and
regulations–Safeguard of assets – Effectiveness and efficiency of operations 8.8 3.8
6 Effectiveness and efficiency of operations – Compliance with applicable laws and
regulations–Safeguard of assets – Reliability of financial reporting 7.0 6.1
7 Reliability of financial reporting –Compliance with applicable laws and regulations –
Effectiveness and efficiency of operations–Safeguard of assets 6.2 2.1
8 Effectiveness and efficiency of operations–Compliance with applicable laws and regulations
–Reliability of financial reporting –Safeguard of assets 5.7 3.7
9 Compliance with applicable laws and regulations – Safeguard of assets – Effectiveness and 4.1 9.1
38
Research year
Order of importance 2007 2003
efficiency of operations – Reliability of financial reporting
10 Compliance with applicable laws and regulations – Safeguard of assets –Reliability of
financial reporting – Effectiveness and efficiency of operations 4.1 11.7
The ratio of the most important objective is as follows.
Unit: percent
Research year
Most important objective 2007 2003
Compliance with applicable laws and regulations 56.0 64.5
Reliability of financial reporting 20.4 11.9
Effectiveness and efficiency of operations 19.0 16.6
Safeguard of assets 4.5 7.0
(7) Implementation and development of self-assessment (CSA) by audit clients (Tables 50 to 51)
Control Self-Assessment (CSA) attracted attention during past two or three years as a monitoring
activity of internal control systems. The historical data of the implementation is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
CSA # % # % # % # %
Implemented
(incl. partially implemented) 817 56.2 498 48.7 265 30.9 265 29.3
Not implemented
(incl. under consideration) 638 43.8 524 51.3 593 69.1 638 70.7
More than fifty percent of organizations implemented CSA. The IAA’s involvement of development
of CSA checklist is as follows.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Who develop checklist? # % # % # % # %
IAA 288 35.3 203 41.3 168 67.5 205 77.4
Audit client (2003 and before: other
departments) 191 23.4 174 35.3 34 13.7 60 22.6
Administration department 139 17.1 - - - - - -
Together with IAA and
Administration department 83 10.2 46 9.3 10 4.0 - -
Together with IAA and audit clients 66 8.1 51 10.4 37 14.9 - -
Together with audit clients and
Administration department 48 5.9 18 3.7 - - - -
The IAA’s involvement has been decreasing. Instead, involvement of Administration department has
been increasing.
(8) Audit techniques used by the IAA at field work (Table 52)
39
Multiple answers were allowed to this question. While interviews have been frequently used and the
ratios have been increasing, the ratios of substantive testing such as sampling have been decreasing.
Summary of the historical data since 1997 is as follows.
Unit: percent
Research year
Techniques used 2007 2003 2000 1997
Examine information and ledgers 97.1 96.7 88.3 89.2
Interview general condition with responsible
person 88.7 88.8 74.8 72.0
Frequently used Interview details with person in charge 86.8 86.7 71.1 75.0
Observe working condition and working
environment 59.3 58.1 43.7 32.2
Count cash and securities 58.7 63.4 49.0 47.9
Som
etime used Count non-cash items 43.3 46.1 29.7 26.8
(9) Format of working papers (Table 53)
The historical data since 1997 is as follows.
Unit: percent
Research year
Format of working papers 2007 2003 2000 1997
Established standardized format 70.9 69.0 68.6 66.1
Not established 20.2 23.3 30.0 33.9
Established for specific audit engagement 8.5 7.3 - -
Others 0.5 0.3 1.4 -
(10) Use and purpose of Computer Assisted Audit Techniques (CAAT) (Tables 54 to 55)
Only 114 organizations (7.9%) used CAAT. It seems there were some misunderstandings about
“CAAT”, because 85.1 percent responded “Computer is used to prepare working papers” in the
research conducted in 2003.
Of the 114 respondents, 47 organizations (43.5%) used CAAT as “general support tool”, 27
organizations (25.0%) used CAAT as “data analysis tool”, and 12 organizations (11.1%) used CAAT
as “management tool of the IAA”.
(11) Outsourcing of the IAA (Tables 56 to 57)
Resources to conduct internal audit is not only internal auditors within the organization but also
include the followings.
1) Specific person within the organization
2) Co-working with specific person within the organization and internal auditors
3) Co-sourcing with the third-party and internal auditors
4) Outsourcing to the third-party
Although outsourcing to the third-party in above 4) may include both outsourcing of the entire IAA and
outsourcing of the specific area of internal audit, the study result showed that outsourcing in the above 4)
is considered latter situation.
Unit: Number of organizations
40
# %
Outsource entire IAA - -
Outsourcing partially 156 10.8
Not outsourcing 1,284 89.2
Outsourcing is not common; however, about 10 percent of respondents used outsourcing. By industry
group, Finance industry (26.3%), Service (10.3%), Transportation / Warehouse (5.8%), Electric
equipment (5.1%), Trading (5.1%), Life Insurance (5.1%), and Real estate (5.1%) used outsourcing.
Table 57 is a breakdown of the 151 organizations, which used outsourcing partially. Of those, 62
organizations (41.1%) responded “co-sourcing with the third-party and IAA”, 52 organizations
(34.4%) responded “outsourcing the IAA to the third-party”. Three-quarters of the 151 organizations
used the third-party as outsourcer. On the other hand, seven organizations (4.6%) used specific
person within the organization as outsourcer, and 30 organizations (19.9%) co-worked with specific
person within the organization.
41
5. Internal Audit Report and Follow-up (Tables 58 to 74)
(1) Confirming findings with audit clients before issuing internal audit report (Table 58)
An exit meeting is generally held to confirm facts of findings, interpretation of judgments, and criteria
to determine materiality between audit clients and internal auditors before issuing the final audit report.
The question in the research conducted until 1997 was “whether opinions are discussed / adjusted”,
however, the question was changed to “how to confirm the findings” from the research conducted in
2000. The historical result is as follows.
Unit: percent
Research year
Method of confirmation 2007 2003 2000 1997
Confirming during fieldwork 48.8 41.5 86.1 79.2
Confirming both during fieldwork and by fax / email 32.3 37.3 2.5 -
Confirming by fax / email 13.4 11.3 7.2 -
Confirming by other method 3.0 - -
Not confirming 2.6 7.6 4.0 20.8
Most of the organizations (97.4%) confirmed facts of findings before issuing the final audit report. Of
those, 81.1 percent confirmed by “face to face” style during the fieldwork.
(2) Timing of the reporting of engagement outcomes (Table 59)
Although timing of the reporting of engagement outcomes depends on the type of internal audit report,
the historical data since 1997 is as follows.
Unit: percent
Research year
Timing of reporting 2007 2003 2000 1997
After each engagement 83.3 84.8 85.7 90.7
Not consistent – depends on audit theme 4.1 4.1 8.4 6.5
At the end of fiscal year 2.1 1.7 2.6 2.9
Periodically (Quarterly, Semi-annually, etc.) 10.5 9.4 2.9 -
There are two types of internal audit report; one is to communicate specific findings to management,
and the other is to summarize audit results during certain period of time.
If an audit is based on management's needs, and/or an audit is emphasized improvement to findings,
the former type of report will be prepared. On the other hand, if the report is periodical performance
report of the IAA, and/or audits are periodical assurance of organization’s departments, functions, or
systems, the above latter type of report will be prepared.
The former type of report may be prepared “after each engagement” and the latter type of report may
be prepared “at the end of fiscal year” or “periodically”. “Not consistent - depends on audit theme” can
be applicable to both types of reports.
(3) Format of internal audit report (Table 60)
There are two formats of internal audit report. One is a summary report and the other is a detailed
report. The ratio to prepare each or both reports since 1997 is as follows.
42
Unit: percent
Research year
Format of report prepared 2007 2003 2000 1997
Both summary and detailed report 58.2 55.8 60.1 56.8
Summary report only 21.1 24.4 26.0 38.3
Detailed report only 20.6 19.7 13.3 12.3
Others - - 0.6 -
More than half of the organizations prepared both summary and detailed report. This trend has been
unchanged over past ten years.
(4) Distribution of internal audit report (Tables 61 to 63)
The following is the results of study in 2007 and 2003 on distribution of internal audit report. Multiple
answers were allowed.
Unit: percent
Summary report
only
Detailed report
only
Both summary
and detailed
Research year
Distribution to 2007 2003 2007 2003 2007 2003
President 88.6 81.0 84.6 83.1 84.8 82.2
Board 10.4 9.8 13.4 8.2 21.6 13.1
Executive Committee 7.7 6.7 16.1
Management Committee 9.4
7.3 7.2
3.1 18.1
8.4
Executive in charge of audit 11.0 20.3 18.2 22.1 26.4 28.9
Kansayaku / Audit Committee 23.1 11.8 28.4 14.9 46.5 23.6
Executive Officer 2.3 3.3 2.7 5.1 5.3 3.3
Executive in charge of audit client 26.4 3.7 33.6 30.8 54.1 43.1
Distribution to “president” showed high percentage in any types of reports. In comparison to the
research conducted in 2003, the ratio of distribution to “board” and “kansayaku / audit committee”
increased.
“Executive officer” is considered as executive officers other than executive in charge of audit and
CAE. It is easy to understand that distribution to “executive in charge of audit client” has been
increasing steadily.
If both summary and detailed reports were prepared, these reports tended to distribute to each of the
above party.
(5) Distribution of copy of internal audit report (Tables 64 to 65)
The following is the results of study in 2007 and 2003 on distribution of copy of internal audit report.
Multiple answers were allowed.
Unit: percent
Summary report Detailed report Research year
Distribution to 2007 2003 2007 2003
President 35.9 - 32.3 -
Board 15.8 13.1 9.8 7.0
43
Summary report Detailed report
Executive Committee 8.6 5.9
Management Committee 14.8
7.7 7.5
3.2
Executive in charge of audit 18.9 19.5 16.7 22.0
Kansayaku / Audit Committee 60.0 35.3 52.6 41.4
Executive Officer 6.8 6.3 4.3 5.9
Executive in charge of audit client - -
Head of audit client 59.5
62.9 66.7
65.6
Executive of related departments 23.1 38.2
Head of related departments 26.2
33.9 27.9
37.6
External Auditor 4.9 - 5.1 -
The number of organizations has been increasing, which distributed copy of internal audit report to
“president”, “executive in charge of audit”, “kansayaku / audit committee”, “executive in charge of
audit client / head of audit client”, and “executive of related departments / head of related
departments”.
(6) Description of recommendations in internal audit report (Table 66)
Internal audit report may include the IAA’s recommendation to the findings. The historical data
whether the recommendation is described in the report is as follows.
Unit: percent
Research year
Recommendations 2007 2003 2000 1997
Describing 52.3 50.1 51.6 46.3
Describing as necessary 40.3 43.2 41.8 46.4
Not describing 7.4 6.7 6.3 7.2
Others - - 0.3 -
Majority of respondents included recommendations in internal audit report.
(7) Preparation of recommendations separately from internal audit report (Table 67)
There are several documents that relate to internal audit report such as “improvements related
documents”, “notification of audit results”, “follow-up report”, and “audit working papers”. This
study is to confirm whether a separate recommendation document is prepared by the IAA.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Separate recommendation # % # % # % # %
Preparing 679 47.1 482 47.4 416 48.0 442 48.7
Not preparing 762 52.9 534 52.6 446 51.5 466 51.3
Others - - - - 4 0.5 - -
(8) Average days to prepare internal audit report (Table 68)
Timely reporting is important to enhance the usefulness of internal audit report. Although the average
days to prepare an internal audit report may be different by type / format of the report, the historical
data since 1997 is as follows.
44
Unit: percent
Research year
Days 2007 2003 2000 1997
1 6.7 4.5 6.0 - -
2 8.8 8.8 8.2 - -
3 10.7 11.5 12.6 - -
4 2.3 2.6 3.4 - -
5 9.4 9.1 10.1 - -
6 0.6 0.2 0.7 Within 6 days 35.9
7 10.1 10.4 14.7 - -
8�15 26.6 25.4 17.8 7�15 days 36.2
16�21 7.8 7.1 9.1 - -
22�1 month 12.2 15.5 9.7 16�30 days 18.0
1 month�1.5 months 1.9 1.1 0.7 - -
1.5 months�2 months 0.7 2.6 2.8 31�59 days 7.2
More than 2 months 2.2 1.2 3.2 60 days or more 2.8
Not constant - - 0.8 - -
More than three quarters of respondents prepared an internal audit report within two weeks. This trend
has been unchanged since 1997. Three hundred and seventy-three organizations (26.2%, 24.8% in the
2003 study) prepared an internal audit report within three days and the ratio has been increasing. These
organizations are trying to prepare the internal audit report as soon as possible because timely
reporting is important for immediate management decision for corrective actions. On the other hands,
the number of organizations which responded “1.5 months to 2 months“ and ”more than 2 months”
increased although these ratios were low.
(9) Style of internal audit report (Table 69)
More than 80 percent of the organizations developed standardized style of internal audit report.
“Developed standardized styles for some audits” was added from the research conducted in 2007 and
resulted to 11.8 percent. In all, 94.6 percent of the organizations developed some standardized style of
internal audit reports.
Unit: percent
Research year
Standard style 2007 2003 2000 1997
Developed standardized style 82.8 81.7 81.9 76.6
Developed standard styles for some audits 11.8 4.6 - -
Not developed standardized style 5.4 13.7 18.1 23.4
(10) Route to instruct corrective actions on audit findings (Table 70)
It is important to clearly establish a route to instruct corrective actions on audit findings in order to
ensure audit results.
Unit: percent
Research year
Route 2007 2003 2000 1997
Chief Audit Executive to audit client 67.9 64.1 63.4 60.9
45
Research year
Route 2007 2003 2000 1997
President to audit client 17.7 22.1 25.8 26.2
Executive in charge of audit client to audit client 4.9 6.2 7.2 6.0
Executive in charge of audit to audit client 4.7 8.0 6.7 8.5
Department in charge to audit client 3.5 4.3 6.0 4.6
Executive Officer to audit client 0.5 0.9 - -
Kansayaku to audit client 0.3 0.7 3.5 2.5
Audit Committee to audit client 0.3 0.1 - -
Seventy-two point nine percent of the organizations responded “CAE to audit client”, “executive in
charge of audit to audit client”, or “kansayaku to audit client”, while 26.1 percent of the organizations
responded “president to audit client”, “executive in charge of audit client to audit client”, or
“department in charge to audit client”.
(11) Confirmation of the status of corrective actions on audit findings (Tables 71 to 72)
Most of the organizations (98.6%) confirmed the status of corrective actions on audit findings while
only 21 organizations (1.4%) did not confirm it. This trend has been unchanged since 1990’s. Method
to confirm the status of corrective actions is as follows.
Unit: percent
Research year
Method 2007 2003 2000 1997
Directly confirming fieldwork place / entity 20.3 18.8 19.0 22.4
Confirming by written report 39.4 38.3 37.8 31.4
Both directly confirming of fieldwork place / entity and by written
report 38.9 43.0 43.2 46.6
Although the ratio decreased in the research conducted in 2007, majority responded “directly
confirming fieldwork place / entity” or “both directly confirming of fieldwork place and by report”.
Timing to confirm the status of corrective actions is as follows.
Unit: percent
Research year
Timing 2007 2003 2000 1997
Follow-up audit after certain period of time 38.9 32.3 48.9 39.2
By report after certain period of time 23.8 31.4 2.3 -
At the next audit 19.5 26.9 33.3 28.5
As necessary 17.8 20.3 26.5 32.2
Because multiple answers were not allowed in the research conducted in 2007, simple comparisons to
prior results would not be appropriate. However, “by report after certain period of time”, “at the next
audit”, and “as necessary” decreased in the 2007 study. “Follow-up audit after certain period of time”
seemed be supported by more organizations.
(12) Preparation of follow-up report (Table73)
The historical data since 2000 is as follows.
46
Unit: percent
Research year
Follow-up report 2007 2003 2000
Preparing 41.6 35.9 51.1
Preparing as necessary 27.2 26.0 3.9
Not preparing 31.3 38.2 44.6
Others - - 0.3
In comparison to the study in 2003,“preparing” and “preparing as necessary" increased 5.7 percent and
1.2 percent respectively.
(13) Retention period of the internal audit report (Table 74)
The historical data since 1997 is as follows.
Unit: percent
Research year
Retention period 2007 2003 2000 1997
Permanently 12.0 14.3 22.2 19.4
10�29 years 7.7 - - -
7�9 years 28.1 29.2 27.3 28.6
5�6 years 10.2 4.8 3.8 4.2
3�4 years 12.8 17.3 15.2 15.1
�3 years 2.8 3.8 4.2 4.2
Others 0.3 1.6 1.0 0.3
Not stipulated 26.0 29.0 26.2 26.9
Although 26.0 percent responded “not stipulated”, majority of the respondents stipulated retention
period of internal audit report. The possibility of use and the space for retention would be considered
when organizations determine the retention period. Twenty-eight point one percent responded “7 to 9
years” and 12.8 percent responded “3 to 4 years”. Because the reports can be retained electronically, it
is desirable that audit reports are retained “permanently” as 12.0 percent responded.
47
6. Information System Audit (Tables 75 to 81)
(1) Conducting information system audit (Tables 75 to 76)
With the increase of dependency to information systems of the organizations’ operation, and the
increase of expenditure for information systems, information system audit has been attracting attention
long time.
As table 24 indicated, the number of organizations which transferred internal auditors from
information system department has been increasing (23.3%).
The ratio that the organizations conducted information system audit is as follows.
Unit: percent
Research year
Information system audit 2007 2003 2000 1997
Conducting 51.4 47.0 40.7 37.5
Not conducting 48.6 53.0 59.3 62.5
Although the organizations which conduct information system audit exceeded 50 percent, and the
ratio has been increasing, it is considered insufficient.
Industry groups which “conducting” information system audit exceeded “mot conducting” were
Textile / Paper, Pulp, Chemical, Metal, Electric equipment, Transportation equipment, Precision
equipment, Life insurance, Non-life insurance, Finance, Electric / Gas, and Service.
Entity to conduct information audit is as follows.
Unit: percent
Research year
Entity 2007 2003 2000 1997
IAA 28.8 32.1 29.9 30.4
Together with IAA and Information system department 6.0 5.0 4.2 3.7
Information system department 3.5 - 2.6 3.7
Outsourcing (including co-sourcing) 10.9 6.6 2.4 -
Others 0.8 2.5 0.6 -
About 30 percent of the organizations conducted information system audit by the IAA.
(2) Staffing of information system auditors in the IAA (Table 77)
As shown below, majority of the organizations did not allocate information system auditors in the IAA.
It will be desirable to allocate information system auditors if the audit is to evaluate adequacy of
information system and/or to technically evaluate efficiency of information system.
Unit: Number of organizations
2007 2003 2000 1997 Research year
Information system auditors # % # % # % # %
Allocated 159 33.2 94 29.4 65 21.0 68 24.6
Not allocated 320 66.8 226 70.6 245 79.0 208 75.4
(3) Alternative method if there is no information system auditor in the IAA (Table 78)
The historical data since 1997 is as follows. (Note: Multiple answers were allowed until the research
48
conducted in 2003.)
Unit: percent
Research year
Alternative method 2007 2003 2000 1997
Limit audit scope and conduct possible audit only 69.6 73.8 71.8 80.3
Ask support to information system department 17.4 20.0 - -
Review self-assessment by information system department 7.0 10.7 14.7 13.0
Ask support to third-party 6.0 1.8 10.2 8.2
Others - - 6.5 -
Majority limited the audit scope and conducted possible audit only, because information system audit
need specialized technical skills.
(4) Approach of information system audit (Table 79)
The historical data since 1997 is as follows.
Unit: percent
Research year
Approach 2007 2003 2000 1997
Information system audit only 16.4 17.4 26.9 19.5
As a part of operational audit 53.4 55.2 47.9 56.0
Both information system audit only and as a part of operational
audit 30.2 27.4 24.3 24.5
The ratio of “both information system audit only and as a part of operational audit” has been increasing.
In the research conducted in 1994, this ratio was 19.2 percent.
(5) Development of information system audit checklist (Table 80)
There are some information about audit checklists such as the “Inspection Manual by Financial
Service Agency”, the “FISC Information Systems Audit Guidelines for Financial Institutions by the
Financial Industry Information Systems Center (FISC)”, and the “System Audit Standards”, which
describe checkpoints of information system audit. The historical data on the development of
information system audit checklist is as follows.
Unit: percent
Research year
Information system audit checklist 2007 2003 2000 1997
Developed standardized checklist 36.8 32.3 23.4 27.6
Developing for each engagement 46.6 49.4 38.9 46.8
Not developing 16.6 18.4 37.7 25.6
As already shown in Table 34, “not developing” internal audit checklist was 11.7 percent while “not
developing” information system audit checklist was 16.6 percent.
(6) Areas of information system audit (Table 81)
Multiple answers were allowed to this question. While the total number of responses in the 2003 study
was 3,085, that in the 2007 study was 5,079, which is 1.65 times more than the figure for the 2003
49
study. While the average number of items responded in the 2007 study was 7.21, it was 6.95 in 2003,
2.21 in 2000, and 4.74 in 1997. Forty percent or more of respondents listed the following areas.
Unit: percent
Research year
Areas 2007 2003 2000 1997
Information security management 78.4 83.6 - -
Contingency planning 65.1 66.9 23.5 57.4
Maintenance of equipment 64.5 62.4 18.6 45.9
Network management 64.1 55.6 18.6 -
Organization / structure of Information System department 60.2 58.6 20.9 51.5
System planning / designing / development management 53.7 48.4 23.3 46.2
Conformity of information system strategy with organizational
policy 51.6 51.4 38.1 -
Outsourcing 44.2 30.9 6.4 -
Less than 40 percent of the respondents listed the following Areas.
Unit: percent
Research year
Areas 2007 2003 2000 1997
Documentation control 37.2 31.3 8.1 -
Input control 34.1 29.7 7.3 30.6
On-line system control 31.8 29.7 5.5 18.5
Output control 30.3 25.9 7.6 30.9
Computer usage of each department 27.1 28.6 10.5 34.7
End-user computing management 24.6 21.8 4.7 -
Expense management of Information System department 22.9 31.8 12.8 29.7
Individual application system 21.2 21.8 7.0 -
Utilization of output data 10.7 16.4 8.1 33.8
From this study, it was noted that audit of computer system itself is not so common in Japan.
50
7. Audit of Subsidiary companies and Affiliated companies (Tables 82 to 89)
(1) Conducting audits of subsidiaries / affiliates (Table 82)
The historical data since 1997 is as follows.
Unit: percent
Research year
Subsidiaries / Affiliates audit 2007 2003 2000 1997
Conducting 73.0 68.9 69.4 65.8
Not conducting 27.0 31.1 30.6 34.2
About 70 percent of the respondents conducted subsidiaries / affiliates audit and this trend has been
unchanged so far.
(2) Criteria to audit domestic and overseas subsidiaries / affiliates (Tables 83 to 84)
Multiple answers were allowed to this question. Comparison to the research conducted in 2003 is as
follows.
Unit: Number of organizations
Domestic
subsidiaries / affiliates
Overseas
subsidiaries / affiliates
2007 2003 2007 2003
Research year
Criteria # % # % # % # %
Wholly-owned company 456 49.4 277 43.0 169 40.7 73 33.5
Consolidated group 351 38.0 208 32.3 164 39.5 80 36.7
Majority-owned company 242 26.2 134 20.8 117 28.2 55 25.2
All subsidiaries and affiliates 242 26.2 128 19.9 100 24.1 46 21.1
No internal audit company 104 11.3 33 5.1 31 7.5 9 4.1
Sending Executives 68 7.4 40 6.2 35 8.4 12 5.5
Manufacture of company’s product
/ parts 27 2.9 17 2.6 24 5.8 10 4.6
Sales company 21 2.3 11 1.7 13 3.1 8 3.7
Investing company 6 0.7 4 0.6 6 1.4 3 1.4
Others 13 1.4 23 3.6 14 3.4 12 5.5
High-rated criteria to audit both domestic and overseas subsidiaries / affiliates were “wholly-owned
company”, “consolidated group”, “majority-owned company”, “all subsidiaries and affiliates”, and
“no internal audit company”. This is because the scope of companies to be included in the consolidated
financial statement is determined based on the actual controlling power. In addition, organizations are
required to establish structures to ensure sound management of corporate group.
(3) Priority area of subsidiaries / affiliates audit (Table 85)
The historical data of the top ten priority areas where respondents conducted audit of subsidiaries /
affiliates is as follows.
Unit: percent
51
Research year
Priority area 2007 2003 2000 1997
Compliance to laws and regulations 78.4 72.6 12.1 -
Internal Controls 77.0 69.7 19.7 52.3
Overall operation 59.8 59.9 - -
Operational improvement 57.6 59.2 23.8 66.6
Risk management 50.0 - - -
Reliability of financial statements 41.0 - - -
Safeguard of receivables 39.1 48.1 21.1 41.1
Inventory management 39.1 - - -
Profitability as a group 32.2 41.8 30.7 44.6
Health and safety 32.2 - -
In the research conducted in 2007, the five high-rated areas were “compliance to laws and regulations”,
“internal controls”, “overall operation”, “operational improvement”, and “risk management”.
“Safeguard of receivables” was a high-rated area but the ratio was lowered currently.
The other areas included in this question were “transaction with parent company” (23.3%), “security /
fire protection” (22.8%), “adequacy of management” (22.1%), “environment management” (17.8%),
“quality control” (21.2%), “sales results” (16.9%), and “investment results” (7.3%).
(4) Who requested audit of subsidiaries / affiliates? (Table 86)
The historical data since 1997 is as follows.
Unit: percent
Research year
Who requested? 2007 2003 2000 1997
Subsidiaries / affiliates management department 59.6 5.0 8.1 9.0
President 29.2 32.3 35.5 34.2
Executive in charge of audit 3.1 7.5 8.0 10.9
Based on internal audit plan 0.4 66.6 66.4 62.9
Instead of “based on internal audit plan”, “subsidiaries / affiliates management department” increased
dramatically.
(5) Timing of the reporting of subsidiaries / affiliates audit (Table 87)
The following is a comparison of timing of the ordinary internal audit report (Table 59) with the
subsidiaries / affiliates audit report.
Unit: percent
Subsidiaries /
Affiliates audit report
Ordinary
audit report
Research year
Timing 2007 2003 2000 2007 2003 2000
After each engagement 85.9 90.0 80.4 83.3 84.8 85.7
At the end of fiscal year 2.1 0.3 7.8 2.1 1.7 2.6
Not consistent – depends on audit universe 3.6 4.5 4.4 4.1 4.1 8.4
Periodically (quarterly, semi-annually, etc) 8.4 8.7 6.9 10.5 9.4 2.9
Others - - 0.5 - - 0.5
52
There was no big difference of the timing between subsidiary / affiliate audit report and ordinary audit
report. Majority of audit reports were issued after the each engagement.
(6) Distribution of internal audit report of subsidiaries / affiliates (Tables 88 to 89)
In the research conducted in 2007, distribution of audit report was asked on the original and the copy
respectively. However, it was not studied separately until the research conducted in 2003. As a
reference, the historical trend until 2000 is as follows.
Unit: percent
Research year
Distribution to 2000 1997 1994
President 84.5 77.8 76.9
President of subsidiary / affiliate 56.8 55.1 59.4
Kansayaku or Audit Committee 30.3 37.1 32.0
Department in charge of subsidiaries / affiliates management 28.0 31.1 29.5
Executive in charge of audit 20.3 24.7 22.1
Executive Committee / Management Committee 6.3 8.3 7.6
Others 1.8 - -
“President” has been increasing while “president of subsidiary / affiliate” has been decreasing
historically.
Distribution of the original and copy of audit report has been studying since the research conducted in
2003. The result is as follows.
Unit: percent
Original Copy Research year
Distribution to 2007 2003 2007 2003
President 82.2 81.7 24.3 17.5
President of subsidiary / affiliate 44.9 38.6 54.4 62.2
Kansayaku 12.7 42.3
Audit Committee 28.7
2.5 50.8
9.7
Executive in charge of audit 20.9 22.5 16.6 20.3
Subsidiaries / affiliates management department 18.1 7.1 40.5 35.1
Board 12.1 - 11.7 -
Executive Committee / Management Committee 10.9 6.2 7.4 11.3
Head of all related departments - - 20.7 -
53
8. Environment Audit (Tables 90 to 96)
(1) Conducting environment audit (Tables 90 to 91)
The ratio that the organizations conduct environment audit is as follows.
Unit: Number of organizations
2007 2003 2000 Research year
Environment audit # % # % # %
Conducting 765 52.5 434 43.1 327 38.2
Not conducting 692 47.5 572 56.9 528 61.8
The organizations which conduct environment audit exceeded 50 percent in the research conducted in
2007. Industry groups which “conducting” environment audit exceeded “not conducting” were
Trading, Department store / Super market, Transportation / Warehouse, Electric / Gas, and all
manufacturing groups except for Textile / Paper, Pulp.
Entity to conduct environment audit is as follows.
Unit: Number of organizations
Entity # %
1 IAA 151 20.0
2 Department in charge of environment 296 39.2
3 Together with the above 1 and 2 61 8.1
4 Quality control department 126 16.7
5 General affair department 71 9.4
6 Outsourcing 20 2.6
(*Denominator of ratio calculation is 765, which is the number of organizations conducting
environment audit.)
More than 50 percent of the organizations conducted environment audit by non-IAA.
(2) Staffing of environment auditors in the IAA (Table 92)
Although the ratio has been decreasing, majority of the organizations did not allocate environment
auditors in the IAA. Of the 765 organizations that conducted environment audit, 160 organizations
responded to this question.
Unit: Number of organizations
2007 2003 2000 Research year
Environment auditors # % # % # %
Allocated 39 24.4 29 18.6 27 18.1
Not allocated 121 75.6 127 81.4 122 81.9
(3) Alternative method if there is no environment auditors in the IAA (Table 93)
Of the 121 organizations that did not allocate environment auditors, 117 organizations responded to
this question.
Unit: Number of organizations
2007 2003 2000 Research year
Alternative method # % # % # %
54
2007 2003 2000
Limit audit scope and conduct possible audit only 96 82.1 101 80.8 106 89.8
Ask support to department in charge of
environment 17 14.5 22 17.6 11 9.3
Ask support to third-party 4 3.4 2 1.6 3 2.5
(4) Development of environment audit checklist (Table 94)
Of the 765 organizations that conducted environment audit, 156 organizations responded to this
question.
Unit: Number of organizations
2007 2003 2000 Research year
Environment audit checklist # % # % # %
Developed standardized checklist 68 43.6 68 43.6 137 52.7
Developing for each engagement 64 41.0 52 33.3 55 21.2
Not developing 24 15.4 36 23.1 70 26.9
Others - - - - 3 1.2
(5) Priority area of environment audit conducted by IAA(Table 95)
Of the 765 organizations that conducted environment audit, 158 organizations responded to this
question. Multiple answers were allowed.
Unit: Number of organizations
2007 2003 2000 Research year
Priority area # % # % # %
Environment management structure 104 65.8 94 60.6 173 64.6
Handling of industrial waste 102 64.6 82 52.9 136 50.7
Policy on environment management 79 50.0 55 35.5 122 45.5
Effort to conserve and recycle resources 72 45.6 54 34.8 137 51.1
Maintenance of ISO14001 66 41.8 50 32.3 - -
Others 11 7.0 7 4.5 14 5.2
(6) Report to the IAA if other functions / departments conducted environment audit (Table 96)
Unit: Number of organizations
2007 2003 Research year
Report to IAA # % # %
Reporting 190 41.1 72 40.7
Not reporting 272 58.9 105 59.3
About 60 percent of the organizations that environment audits were conducted by non-IAA did not
report the result to the IAA.
55
<Relationship with Other Audits>
1. Relationship between Internal Audit and Kansayaku (Corporate Auditors) Audit (Tables 97 to 103) The following questions (1), (2), (3), and (4) were not asked in the research conducted in 2007. However, in
order to provide some background information about the relationship between the IAA and the kansayaku,
the historical data since 1997 is shown below.
(1) Dedicated staff members for the kansayaku
Unit: percent
Research year
Dedicated staff member 2007 2003 2000 1997
No dedicated staff member 48.4 45.4 46.3
Dedicated staff member exist 30.1 26.3 23.7
Part of IAA staff support Kansayaku 12.8 16.2 16.8
All IAA staff support Kansayaku 6.2 7.6 9.1
Other department’s staff support Kansayaku 3.7 5.2 4.1
Others
Not
asked
- 0.5 -
The number of dedicated staff member for the kansayaku is as follows.
Unit: Number of organizations
2003 2000 1997 Research year
Number of staff 2007
# % # % # %
Less than 3 242 81.5 178 81.3 166 77.9
4�6 39 13.1 28 12.8 33 15.5
7�9 9 3.0 7 3.2 8 3.8
10�
Not
asked
7 2.4 6 2.7 6 2.8
(2) Establishment of the kansayaku audit standards
Unit: Number of organizations
2003 2000 1997 Research year
Audit Standards 2007
# % # % # %
Established 763 80.6 631 79.7 626 72.7
Not established
Not
asked 184 19.4 161 20.3 235 27.3
(3) Instruction to the IAA if the IAA has staff roles of kansayaku
Unit: Number of organizations
2003 2000 1997 Research year
Instruction from 2007
# % # % # %
Kansayaku 96 53.0 98 53.3 103 44.2
Kansayaku or CAE depends on
topics 52 28.7 59 32.1 86 36.9
CAE 28 15.5 25 13.6 44 18.9
President
Not
asked
5 2.8 2 1.1 - -
56
(4) Stipulation in organization’s regulation if the IAA has staff roles of kansayaku
Unit: percent
Research year
Stipulated in 2007 2003 2000 1997
Segregation of duty regulation 32.2 39.2 32.2
Kansayaku charter 13.7 16.5 22.9
Internal audit charter 12.0 10.3 11.9
Not stipulated
Not
asked
47.0 38.1 38.6
Multiple answers were allowed except for the research conducted in 2000.
(5) Communication between the IAA and the kansayaku (Tables 97 to 100)
In the study conducted in 2003, 85.9 percent of the organizations responded that the IAA reports the
results of audits to kansayaku. In 2007, communication between the IAA and the kansayaku is
examined.
Unit: Number of organizations
Communication # %
Information are transferred from Kansayaku to IAA 1,137 82.2
Information are transferred from IAA to Kansayaku 1,321 96.4
The contents of information from the kansayaku to the IAA are as follows. Multiple answers were
allowed and 1,114 organizations responded.
Unit: Number of organization
Audit policy Audit results Audit schedule Audit location Others
# % # % # % # % # %
828 74.3 769 69.0 675 60.6 652 58.5 39 3.5
The contents of information from the IAA to the kansayaku are as follows. Multiple answers were
allowed and 1,370 organizations responded.
Unit: Number of organization
Audit results Audit plan Audit status Others
# % # % # % # %
1,304 95.2 1,150 83.9 876 63.9 24 1.8
The timing (frequency) of the reporting of internal audit results from the IAA to the kansayaku is as
follows. There were 1,289 responses.
Unit: Number of organization
Each
engagement
Monthly Quarterly Semi-
Annually
Annually Others
# % # % # % # % # % # %
909 70.5 147 11.4 115 8.9 81 6.3 18 1.4 19 1.5
(6) Coordination of audit work between the IAA and the kansayaku (Tables 101 to 102)
Unit: percent
57
Research year
IA and Kansayaku audit 2007 2003 2000 1997
Coordinating 60.6 66.0 67.5 64.6
Not coordinating 39.4 34.0 32.5 35.4
The contents of coordination of audit work between the IAA and the kansayaku are as follows. There
were 824 responses.
Unit: percent
Research year
Contents 2007 2003 2000 1997
Audit schedule 74.0 57.2 60.5 61.8
Audit scope / items 56.2 45.8 61.2 66.0
Audit location 55.3 36.2 35.4 34.5
Audit policy 35.7 31.3 1.4 -
(7) Conducting joint audit by the IAA and the kansayaku (Table 103)
Unit: Number of organizations
2007 2003 2000 1997 Research year
Joint audit # % # % # % # %
Conducting 443 32.7 339 35.5 333 39.9 321 36.3
Not conducting 913 67.3 615 64.5 492 58.9 563 63.7
Others - - - - 10 1.2 - -
58
2. Relationship between Internal Audit and Audit Committee (Tables 104 to 110)
There were 222 responses to audit committee questions. This was only 15.07 percent of the 1,473 usable
responses. However, the number of organizations which has the audit committee has been increasing. In
the research conducted in 2003, it was 36 organizations. The following are results of responses to questions
on the audit committee, although the number of responses is not sufficient to understand current situations
and trends.
(1) Establishment of the audit committee charter
Unit: Number of organizations
2007 2003 Research year
Audit Committee Charter # % # %
Established 95 42.8 32 88.9
Not established 127 57.2 4 11.1
(2) The audit committee’s authority to order / instruct the IAA
Unit: Number of organizations
2007 2003 Research year
Authority # % # %
Having authority to order / instruct 53 38.1 22 62.9
Not having authority to order / instruct 86 61.9 13 37.1
(3) Dedicated staff members for the audit committee
Unit: Number of organizations
2007 2003 Research year
Authority # % # %
Dedicated staff exist 34 24.1 20 57.1
Some of internal audit staff concurrently serve 17 12.1 3 8.6
All of internal audit staff concurrently serve 11 7.8 2 5.7
Some of other department staff concurrently serve 3 2.1 1 2.9
No dedicated staff exist 76 53.9 9 25.7
(4) Contents of communication from the IAA to the audit committee
Unit: Number of organization
Audit results Audit plan Audit status Not
communicated Others
# % # % # % # % # %
83 62.4 70 52.6 59 44.4 45 33.8 - -
(5) Timing (frequency) of reporting of the internal audit results from the IAA to the audit committee
Unit: Number of organization
Each
engagement Monthly Quarterly
Semi-
Annually Annually Others
# % # % # % # % # % # %
59
Each
engagement Monthly Quarterly
Semi-
Annually Annually Others
# % # % # % # % # % # %
41 50.6 17 21.0 14 17.3 5 6.2 2 2.5 2 2.5
(6) Contents of instruction from the audit committee to the IAA
Unit: Number of organization
Audit universe Audit policy Audit scope Risk
assessment Others
# % # % # % # % # %
39 50.6 34 44.2 33 42.9 26 33.8 8 10.4
(7) Approval by the audit committee on the IAA
Unit: Number of organization
Audit plan Charter / manuals Human
resources Budget Others
# % # % # % # % # %
45 80.4 20 35.7 11 19.6 9 16.1 1 1.8
60
3. Relationship between Internal Audit and External Auditors (CPAs) (Tables 111 to 114)
(1) Coordination of audit work between the IAA and the external audit (CPAs) (Tables 111 to 112)
Unit: percent
Research year
Internal and external audit 2007 2003 2000 1997
Coordinating 21.7 24.8 25.9 27.7
Not coordinating 78.3 75.2 74.1 72.3
“Not coordinating” has been increasing since the research conducted in 1994.
The contents of coordination of audit work between internal and external audit is as follows. Multiple
answers were allowed.
Unit: Number of organization
2007 2003 2000 1997 Research year
Contents # % # % # % # %
Audit schedule 231 76.5 165 67.6 153 69.2 187 77.0
Audit location 136 45.0 66 27.0 89 40.3 110 45.3
Audit scope / items 140 46.4 94 38.5 78 35.3 78 32.1
Others - - - - 4 1.8 - -
As shown in Table 44, the IAA tended to focus on the operational audit; therefore, the IAA did not
coordinate with the external auditors (CPAs) well. Because the Internal Control Report System (so
called J-SOX) will be implemented from the fiscal year starting from April 1, 2008, coordination
between internal and external audit will be enhanced.
(2) Communication of internal audit results to external auditors (CPAs) (Table 113)
Unit: percent
Research year
Internal Audit Results 2007 2003 2000 1997
Always communicating 8.6 14.1 13.0 11.1
Communicating if requested 49.0 38.8 45.3 41.6
Communicating depends on matters 13.0 8.5 1.3 -
Not communicating 29.5 38.6 40.3 47.3
The ratio of “not communicating” internal audit results has been decreasing since the research
conducted in 1997. In 1985, “communicating” was 6.1 percent and “not communicating” was 71.6
percent.
(3) Documents that external auditors (CPAs) request the IAA (Table 114)
Multiple answers were allowed to this question. There were 648 responses.
Unit: Number of organization
Audit report Working paper Not consistent
# % # % # %
623 96.1 147 22.7 67 10.3
61
<Recent implementation / revision of Laws and Regulations> (Tables 115 to 117)
(1) Impacts from the recent implementation / revision of laws and regulations on internal audit (Tables
115 to 117)
One thousand and ninety-five organizations (75.6%) responded that there were some impacts from the
recent implementation / revision of laws and regulation. Name of laws and regulations is as follows.
Unit: Number of organization
Financial Instruments
and Exchange Law and
Council Opinion (*1)
Corporation law
Financial Services
Agency’s Inspection
Manual
Basel II (*2) Others
# % # % # % # % # %
867 79.8 784 72.2 187 17.2 95 8.7 73 6.7
(*1) “Council Opinions” is “On the Setting of Standards and Practice Standards for Management
Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)”,
which was published by Business Accounting Council.
(*2) “Basel II” is “Basel II: International Convergence of Capital Measurement and Capital
Standards: A Revised Framework - Comprehensive Version”, which was published by Basel
Committee on Banking Supervision.
The eight highest-rated contents of impact from the recent implementation / revision of laws and
regulations, which 1,081 organizations responded, are as follows. Multiple answers were allowed.
Unit: percent
1 Implementation of internal control audit 61.6
2 Revision of internal audit charter 37.1
3 Increasing internal audit staff 36.4
4 Strengthening of collaboration with kansayaku audit 31.3
5 Revision of internal audit procedure manuals 28.6
6 Strengthening of collaboration with external auditors (CPAs) 21.0
7 Increasing internal audit budget 15.3
8 Change of the IAA’s name 6.8
62
<Internal Auditors’ role under the Internal Control Report System> (Tables 118 to 126)
One thousand and thirty-six organizations (71.5%) are required to comply with the Internal Control Report
System (so called J-SOX), which will be implemented from the fiscal year beginning April 1, 2008. Of those,
946 organizations (91.8%) established a project to promote the J-SOX. About 90 percent of the organizations
responded that internal auditors were involved in the project.
Unit: Number of organizations
As project member As observer As project leader
# % # % # %
479 50.5 245 25.8 111 11.7
Needless to say, from the view point of independence, it is better if internal auditors are not involved in the
project. As internal auditors have highest skills, knowledge, and analysis experiences in internal controls within
their organization, some internal auditors were transferred to the project team.
Forty-four out of the 1,015 respondents (4.3%) answered that the IAA did not have any roles under the J-SOX.
Respondents were asked to indicate which of the following roles the IAA has. Multiple answers were allowed.
Unit: Number of organizations
1 Monitoring operation of internal controls 811
2 Monitoring maintenance of internal controls 743
3 Maintaining internal controls 263
4 Operating internal controls 151
Regarding impacts from the J-SOX to the IAA’s planned activities, 572 organizations (57.6%) responded that
there was no impact and the original audit plan was completed.
Regarding impacts from the J-SOX to the IAA, 989 respondents indicated as follows.
Unit: percent
a Human resources of the IAA Increased 40.5 Not changed 57.8
b Management’s expectations to the IAA Heighten 62.2 Not changed 37.3
c Make internal audit woks easier Easier 36.2 Not changed 50.1
63
<Quality Assessments of Internal Audit>
Quality assessment of internal audit consists of external assessments and internal assessments.
The first question was development of “Internal audit quality assessments rules / manuals”. There were 1,433
organizations (26%) which developed the rules / manuals.
As this is the first time to study quality assessments of internal audit, we provide the outlines of the Japanese
IAA’s practice of quality assessment of internal audit as follows.
1. Internal Assessments (Tables 127 to 133)
1) Implementation of periodic review
Periodic review # %
Implementing 215 15.5
Not implementing 1,175 84.5
Total responses 1,390 100.0
2) Cycle of “periodic review”
Cycle of periodic review # %
Less than 1 year 52 25.6
Every year 127 62.5
Every 2�4 years 17 8.4
Every 5 years 5 2.5
6 years or more 2 1.0
Total responses 203 100.0
3) Timing of previous periodic internal assessment
Previous assessment # %
2007 98 48.7
2006 91 45.3
2005 or before 12 6.0
Total responses 201 100.0
4) Ongoing monitoring and measurement of effectiveness
Ongoing monitoring Measurement # %
Measuring 108 8.0 Implementing
Not measuring 96 7.2
Not implementing 1,134 84.8
Total responses 1,338 100.0
5) Purpose to measure the effectiveness of ongoing monitoring
Purpose # %
To facilitate / confirm importance of IAA 78 74.3
To manage IAA effectively 56 53.3
To confirm level of internal audit performed 42 40.0
64
Purpose # %
To enhance awareness and evaluation of importance of IAA within
organization 38 36.2
Others 3 2.9
Total responses 217
(Multiple answers were allowed.)
6) Timing to measure the effectiveness of ongoing monitoring
Timing # %
After each engagement 57 54.3
Periodically 40 38.1
At the next audit 8 7.6
Total responses 105 100.0
65
2. External Assessments (Tables 134 to 143)
1) Understanding that “external assessments” must be conducted at least once every five years, which is
required by the Standards
Understanding of requirement # %
Understanding 858 61.1
Not understanding 547 38.9
Total responses 1,405 100.0
2) Implementation of periodic review of external assessments
Periodic external assessment # %
Implementing 98 7.0
Not implementing 1,293 93.0
Total responses 1,391 100.0
3) Cycle of periodic external assessments
Cycle of periodic review # %
Less than 1 year 13 14.8
Every year 27 30.6
Every 2�4 years 24 27.3
Every 5 years 18 20.5
6 years or more 6 6.8
Total responses 88 100.0
4) Timing of previous periodic external assessment
Previous assessment # %
2007 38 45.8
2006 24 28.9
2005 or before 21 25.3
Total responses 83 100.0
5) Method of external assessments
Method # %
By external reviewer 74 84.1
Self-assessment with independent validation 14 15.9
Total responses 88 100.0
6) Reviewer of external assessments
Reviewer # %
Audit firm 48 55.2
Service provider of internal audit 9 10.3
Peer reviewer ( 3 organizations or more) 2 2.3
Others 28 32.2
66
Reviewer # %
Total responses 87 100.0
7) Involvement of the board (audit committee), kansayaku, and management regarding selection of
external assessments
Selection items # %
Selection of method of external assessments 6 7.3
Selection of reviewer 16 19.5
Both method of external assessments and reviewer 26 31.7
Not involved 34 41.5
Total responses 82 100.0
8) Reason why external assessments are not yet implemented
Reason # %
Not up to 5 years cycle 416 35.0
Management does not find the value 365 30.7
No time 262 22.0
No budget 247 20.8
Others 248 20.9
Total responses 1,538
(Multiple answers were allowed.)
9) Timing of implementation of external assessments if not yet implemented
Timing # %
2007 6 0.5
2008 60 4.7
2009 57 4.5
2010� 33 2.6
Not yet determined 1,084 85.1
Will not implement 33 2.6
Total responses 1,273 100.0
10) Method of external assessments if not yet implemented
Method # %
By external reviewer 510 46.8
Self-assessment with independent validation 579 53.2
Total responses 1,089 100.0
67
DATA SECTION
Basic Research
1. Classification of respondents
<By Capital>
Capital
(Billion yen)
# of
Organizations
Ratio
(%)
� 0.9 210 14.7
1 � 2.9 193 13.5
3 � 4.9 116 8.1
5 � 9.9 189 13.2
10 � 19.9 195 13.6
20 � 49.9 202 14.1
50 � 99.9 118 8.2
100 � 199.9 76 5.3
200 � 999.9 97 6.8
1,000 � 35 2.4
Total 1,431 100.0
*No response: 42 organizations
<By Sales>
Sales
(Billion yen)
# of
Organizations
Ratio
(%)
� 0.9 24 1.8
1 � 2.9 32 2.4
3 � 4.9 32 2.4
5 � 9.9 84 6.3
10 � 19.9 176 13.2
20 � 49.9 308 23.2
50 � 99.9 211 15.9
100 � 199.9 174 13.1
200 � 999.9 210 15.8
1,000 � 78 5.9
Total 1,329 100.0
*No response: 144 organizations
<By Total Assets>
Total Assets
(Billion yen)
# of
Organizations
Ratio
(%)
� 0.9 16 1.2
1 � 2.9 30 2.3
68
Total Assets
(Billion yen)
# of
Organizations
Ratio
(%)
3 � 4.9 30 2.3
5 � 9.9 87 6.6
10 � 19.9 138 10.4
20 � 49.9 285 21.5
50 � 99.9 219 16.6
100 � 199.9 140 10.6
200 � 999.9 223 16.9
1,000 � 155 11.7
Total 1,323 100.0
*No response: 150 organizations
<By Number of Employees>
Number of Employees # of
Organizations
Ratio
(%)
� 100 91 6.3
101 � 200 119 8.2
201 � 300 110 7.6
301 � 500 172 11.8
501 � 1,000 297 20.4
1,001 � 2,000 266 18.3
2,001 � 3,000 116 8.0
3,001 � 5,000 105 7.2
5,001 � 10,000 106 7.3
10,001 � 30,000 49 3.4
30,001 � 100,000 19 1.3
100,000 � 4 0.3
Total 1,454 100.0
*No response: 19 organizations
69
<Classification by Industry>
# Industry Group # of
Organizations
Ratio
(%)
1 Construction 70 4.8
2 Fishing / Food 53 3.6
3 Textile / Paper / Pulp 24 1.6
4 Chemical 92 6.2
5 Medicine 33 2.2
6 Oil / Coal / Mining 10 0.7
7 Rubber 5 0.3
8 Glass / Soil & Stone 14 1.0
9 Steel 17 1.2
10 Metal 32 2.2
11 Machine 69 4.7
12 Electric equipment 106 7.2
13 Transportation equipment 44 3.0
14 Precision equipment 27 1.8
15 Misc. manufacturing 62 4.2
Manufacturing industry
Manufacturing total 658 44.7
16 Trading 76 5.2
17 Department store / Super market 40 2.7
18 Various commercial 84 5.7
19 Life insurance 17 1.2
20 Non-life insurance 13 0.9
21 Finance 168 11.4
22 Real estate 51 3.5
23 Transportation / Warehouse 72 4.9
24 Telecom / Advertising 40 2.7
25 Electric / Gas 18 1.2
26 Services 193 13.1
27 Independent administrative institution /
Special public institution / School
corporation / Association etc.
43 2.9 N
on-manufacturing industry
Non-manufacturing total 815 55.3
Grand total 1,473 100.0
70
<Number of Organizations by Industry by Capital>
Unit: Number of organizations
Capital
�Billion yen�
Industry
�0.9 1�
2.9
3�
4.9
5�
9.9
10�
19.9
20�
49.9
50�
99.9
100�
199.9
200�
999.9
1,000
�
Total
Construction 7 10 8 5 8 17 6 4 4 - 69
Fishing / Food 6 5 1 7 12 11 1 6 3 - 52
Textile / Paper / Pulp - 2 2 2 4 5 2 2 5 - 24
Chemical 3 8 9 13 20 14 10 11 3 1 92 Medicine 4 4 1 5 2 6 6 1 2 1 32
Oil / Coal / Mining - 1 2 1 - 1 - - 4 1 10 Rubber - - 1 1 - 2 - - - 1 5
Glass / Soil & Stone 1 - 3 3 1 1 2 1 2 - 14
Steel - 3 - 1 2 4 2 1 1 3 17
Metal 2 8 1 5 3 5 4 3 - - 31
Machine 3 8 7 9 15 13 7 3 4 - 69 Electric equipment 6 18 3 22 19 12 9 5 8 4 106
Transportation equipment 1 4 6 5 6 8 2 3 6 1 42
Precision equipment 3 6 2 5 1 3 3 2 1 - 26
Misc. manufacturing 8 11 9 9 13 7 1 2 1 - 61
Trading 15 12 9 10 10 7 3 - 7 2 75 Department store / Super market 4 7 3 8 6 6 2 1 2 1 40
Various commercial 16 15 12 8 10 12 7 1 - - 81
Life insurance - - - - 2 5 2 1 5 2 17
Non-life insurance 1 1 - 1 2 2 2 1 1 1 12
Finance 26 19 5 19 22 28 16 12 12 7 166
Real estate 12 6 4 7 9 5 4 2 1 1 51
Transportation / Warehouse 12 9 3 8 7 12 8 4 8 - 71 Telecom / Advertising 7 6 3 4 4 2 6 - 4 1 37
Electric / Gas 2 - 2 1 - 1 1 4 3 4 18
Services 69 27 20 27 14 11 9 4 5 1 187
Independent administrative institution /
Special public institution / School
corporation / Association etc.
2 3 - 3 3 2 3 2 5 3 26
Total (# of Organizations) 210 193 116 189 195 202 118 76 97 35 1,431
Ratio (%) 14.7 13.5 8.1 13.2 13.6 14.1 8.2 5.3 6.8 2.4
*No response: 42 organizations
71
<Number of Organizations by Industry by Sales>
Unit: Number of organizations
Sales
�Billion yen�
Industry
�0.9 1�
2.9
3�
4.9
5�
9.9
10�
19.9
20�
49.9
50�
99.9
100�
199.9
200�
999.9
1,000
�
Total
Construction - - - 1 6 20 14 11 13 5 70
Fishing / Food - - - 2 5 9 11 14 9 3 53
Textile / Paper / Pulp - - - 1 1 6 6 4 3 3 24 Chemical 1 - 1 7 14 26 15 8 20 - 92
Medicine 2 - - 3 3 8 6 3 6 - 31
Oil / Coal / Mining - - - 1 - 3 - - 1 5 10
Rubber - - 1 - 1 - 1 - 2 - 5
Glass / Soil & Stone - - - 1 1 5 1 2 4 - 14 Steel - - - - 1 3 3 3 3 3 16 Metal - - - 3 3 14 2 5 3 1 31
Machine - 1 1 6 10 19 9 9 12 2 69
Electric equipment 1 1 3 7 15 19 20 15 17 7 105
Transportation equipment - 1 - - 3 5 9 11 9 6 44 Precision equipment - 1 - 3 5 7 4 5 1 1 27
Misc. manufacturing - 4 1 2 12 23 10 3 6 - 61 Trading - - 2 2 2 23 13 12 11 9 74
Department store / Super market - - - - 2 4 12 9 10 3 40
Various commercial 3 2 3 3 9 18 18 10 13 1 80
Life insurance - - - - - 2 2 1 5 3 13
Non-life insurance - - - - 3 1 - 3 3 3 13 Finance 9 5 5 5 9 11 8 6 14 6 78
Real estate - 1 2 6 8 17 6 7 2 - 49
Transportation / Warehouse - - 3 2 12 11 12 13 14 4 71
Telecom / Advertising - 1 3 2 6 8 3 6 6 4 39
Electric / Gas - - - - - 2 3 3 4 6 18 Services 7 14 6 26 44 40 19 8 16 2 182
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 1 1 1 1 4 4 3 3 1 20
Total (# of Organizations) 24 32 32 84 176 308 211 174 210 78 1,329
Ratio (%) 1.8 2.4 2.4 6.3 13.2 23.2 15.9 13.1 15.8 5.9
*No response: 144 organizations
72
<Number of Organizations by Industry by Total Assets>
Unit: Number of organizations
Total Assets
(Billion yen)
Industry
�0.9 1�
2.9
3�
4.9
5�
9.9
10�
19.9
20�
49.9
50�
99.9
100�
199.9
200�
999.9
1,000
�
Total
Construction 2 1 - 4 5 14 12 9 13 5 65
Fishing / Food - 2 - 1 6 10 10 8 9 3 49
Textile / Paper / Pulp - - - 1 1 5 7 1 6 3 24
Chemical 1 - - 4 10 24 19 8 18 4 88
Medicine 1 - - 1 2 6 7 6 5 2 30
Oil / Coal / Mining - - - - 1 2 1 2 - 4 10
Rubber - - - - 2 - 1 - 1 1 5
Glass / Soil & Stone - - - - 1 5 - 2 3 2 13
Steel - - - - 1 4 3 2 3 4 17
Metal - - 1 2 5 9 4 4 3 2 30
Machine - 1 4 12 12 8 11 16 2 66
Electric equipment - 1 2 7 8 25 22 13 13 7 98
Transportation equipment - - - 1 2 9 12 4 7 4 39
Precision equipment - - - 1 4 5 4 1 4 1 20
Misc. manufacturing 1 2 1 4 9 23 10 1 3 1 55
Trading - - - 4 9 26 13 7 6 7 72
Department store / Super market - - 1 1 3 11 6 2 11 2 37
Various commercial 3 2 2 3 17 18 15 8 4 2 74
Life insurance - - - - - - - 1 7 9 17
Non-life insurance - - - - - 3 1 - 3 6 13
Finance 4 2 1 5 4 7 19 8 33 54 137
Real estate - 1 2 4 2 6 14 10 8 2 49
Transportation / Warehouse - - 2 5 3 14 10 4 18 12 68
Telecom / Advertising - 2 2 5 4 7 1 5 5 3 34
Electric / Gas - - - - 1 2 2 1 3 9 18
Services 4 15 16 29 23 32 11 11 15 - 156
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 1 - 1 3 6 7 11 6 4 39
Total (# of Organizations) 16 30 30 87 138 285 219 140 223 155 1,323
Ratio (%) 1.2 2.3 2.3 6.6 10.4 21.5 16.6 10.6 16.9 11.7
*No response: 150 organizations
73
<Number of Organizations by Industry by Number of Employees>
Unit: Number of organizations
Number of Employees
Industry
�
100
101
�
200
201
�
300
301
�
500
501 �
1,000
1,001
�
2,000
2,001
�
3,000
3,001
�
5,000
5,001
�
10,000
10,001
�
30,000
30,001 �
100,000
100,001
�
Total
Construction - 4 3 5 18 20 7 4 7 1 - - 69
Fishing / Food 2 2 3 5 14 12 4 5 4 2 - - 53
Textile / Paper / Pulp - - 1 2 4 8 2 2 2 2 1 - 24
Chemical 1 5 9 13 26 15 8 10 3 2 - - 92
Medicine 2 - 1 4 6 6 5 1 6 2 - - 33
Oil / Coal / Mining - 3 - 1 1 2 - - 2 1 - - 10
Rubber - - 1 - 1 - 1 - - 2 - - 5
Glass / Soil & Stone - 1 2 2 2 4 1 - 2 - - - 14
Steel 1 - 2 1 5 1 - 4 1 2 - - 17
Metal - 1 5 4 10 4 5 2 1 - - - 32
Machine 4 4 - 14 14 11 9 2 7 2 1 - 68
Electric equipment - 4 4 11 27 18 10 12 5 8 5 2 106
Transportation equipment - - - 3 7 10 8 3 5 5 2 1 44
Precision equipment - 2 1 4 3 8 2 4 1 - 2 - 27
Misc. manufacturing 3 3 5 8 20 14 4 4 1 - - - 62
Trading 2 10 14 18 17 6 2 4 3 - - - 76
Department store / Super market - 2 1 2 3 8 6 8 5 3 2 - 40
Various commercial 6 6 5 9 21 20 5 4 6 - - - 82
Life insurance - 2 1 4 1 - - 2 4 2 1 - 17
Non-life insurance - 1 1 2 1 - 1 2 2 3 - - 13
Finance 30 26 15 13 22 26 14 7 3 3 1 - 160
Real estate 14 13 4 4 10 4 1 - - - - - 50
Transportation / Warehouse 5 7 7 7 12 11 2 6 9 2 3 1 72
Telecom / Advertising 2 7 8 7 7 3 - 1 5 - - - 40
Electric / Gas - - 1 1 1 4 1 1 5 3 1 - 18
Services 17 16 14 24 40 37 13 11 16 3 - - 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
2 - 2 4 4 14 5 6 1 1 - - 39
Total (# of Organizations) 91 119 110 172 297 266 116 105 106 49 19 4 1,454
Ratio (%) 6.3 8.2 7.6 11.8 20.4 18.3 8.0 7.2 7.3 3.4 1.3 0.3
*No response: 19 organizations
74
Specific Research
<Internal Audit>
1. Auditable entities (Table 1)
<Table 1> Auditable entities (by industry)
Unit: Number of organizations
Auditable entities
Industry
Head office Domestic
business
office
Overseas
business
office
Domestic
subsidiary /
affiliate
Overseas
subsidiary /
affiliate
Total
Construction 57 66 17 50 20 210
Fishing / Food 46 51 16 43 23 179
Textile / Paper / Pulp 22 23 8 20 12 85
Chemical 83 88 31 73 55 330
Medicine 33 31 7 24 9 104
Oil / Coal / Mining 10 10 5 9 5 39
Rubber 4 5 2 4 3 18
Glass / Soil & Stone 13 12 5 13 7 50
Steel 17 16 8 14 11 66
Metal 27 29 8 22 20 106
Machine 67 67 29 54 42 259
Electric equipment 102 100 44 87 73 406
Transportation equipment 42 40 14 34 28 158
Precision equipment 25 24 14 18 22 103
Misc. manufacturing 55 57 14 45 27 198
Trading 68 69 27 47 34 245
Department store / Super market 37 35 1 25 3 101
Various commercial 74 75 10 57 14 230
Life insurance 17 14 2 9 5 47
Non-life insurance 12 12 7 11 8 50
Finance 152 141 20 89 20 422
Real estate 46 39 2 32 6 125
Transportation / Warehouse 62 65 15 58 27 227
Telecom / Advertising 37 34 6 28 9 114
Electric / Gas 15 18 5 14 3 55
Services 168 158 12 97 31 466
Independent administrative institution /
Special public institution / School corporation
/ Association etc.
35 40 6 8 - 89
Total (# of Organizations) 1,326 1,319 335 985 517 4,482
Ratio (%) 90.1 89.7 22.8 67.0 35.1
� No response: 2 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses
75
to each item / number of usable responses (1,471 organizations) * 100
76
2. Positioning of the Internal Audit Activity in the organization (Tables 2 to 29)
<Table 2> Positioning of the IAA (by industry)
Unit: Number of organizations
Direct report to
President
Direct report to
Board
Direct report to
Senior
Executive
Direct report to
Audit
Committee
Direct report to
Kansayaku
Direct report to
Executive
Officer
Same level as
other
departments
Belong to a
specific
department
Others Total Positioning
Industry
# % # % # % # % # % # % # % # % # % #
Construction 54 78.3 - - 7 10.1 - - - - - - 7 10.1 1 1.4 - - 69
Fishing / Food 43 81.1 2 3.8 8 15.1 - - - - - - - - - - - - 53 Textile / Paper / Pulp 19 79.2 1 4.2 - - - - - - - - 1 4.2 3 12.5 - - 24
Chemical 75 81.5 3 3.3 11 12.0 - - - - 2 2.2 - - 1 1.1 - - 92
Medicine 22 68.8 - - 5 15.6 - - - - 3 9.4 1 3.1 1 3.1 - - 32
Oil / Coal / Mining 9 90.0 - - 1 10.0 - - - - - - - - - - - - 10
Rubber 4 80.0 - - 1 20.0 - - - - - - - - - - - - 5 Glass / Soil & Stone 10 71.4 - - 2 14.3 1 7.1 - - 1 7.1 - - - - - - 14 Steel 11 64.7 - - 3 17.6 - - - - 1 5.9 1 5.9 1 5.9 - - 17
Metal 25 78.1 2 6.3 3 9.4 - - - - 1 3.1 - - 1 3.1 - - 32
Machine 51 77.3 1 1.5 7 10.6 - - - - - - 3 4.5 4 6.1 - - 66
Electric equipment 93 89.4 3 2.9 3 2.9 - - - - 1 1.0 2 1.9 2 1.9 - - 104 Transportation equipment 30 68.2 1 2.3 3 6.8 - - - - - - 6 13.6 3 6.8 1 2.3 44
Precision equipment 24 88.9 - - 2 7.4 1 3.7 - - - - - - - - - - 27 Misc. manufacturing 52 83.9 - - 4 6.5 - - 1 1.6 1 1.6 2 3.2 2 3.2 - - 62
Trading 65 86.7 2 2.7 - - - - - - 2 2.7 3 4.0 3 4.0 - - 75
Department store / Super market 29 72.5 1 2.5 5 12.5 1 2.5 - - - - 3 7.5 1 2.5 - - 40
Various commercial 75 90.4 - - 2 2.4 1 1.2 1 1.2 - - 2 2.4 1 1.2 1 1.2 83
Life insurance 9 52.9 2 11.8 2 11.8 1 5.9 - - 1 5.9 2 11.8 - - - - 17 Non-life insurance 6 54.5 1 9.1 3 27.3 - - - - 1 9.1 - - - - - - 11
77
Direct report to
President
Direct report to
Board
Direct report to
Senior
Executive
Direct report to
Audit
Committee
Direct report to
Kansayaku
Direct report to
Executive
Officer
Same level as
other
departments
Belong to a
specific
department
Others Total Positioning
Industry
# % # % # % # % # % # % # % # % # % # Finance 103 62.4 29 17.6 14 8.5 2 1.2 - - 1 0.6 11 6.7 4 2.4 1 0.6 165
Real estate 38 77.6 - - 4 8.2 - - - - - - 4 8.2 2 4.1 1 2.0 49
Transportation / Warehouse 46 65.7 1 1.4 9 12.9 1 1.4 - - - - 6 8.6 6 8.6 1 1.4 70
Telecom / Advertising 29 74.4 - - - - 1 2.6 - - - - 6 15.4 3 7.7 - - 39
Electric / Gas 12 66.7 1 5.6 - - - - - - - - 4 22.2 1 5.6 - - 18 Services 154 80.6 1 0.5 13 6.8 1 0.5 1 0.5 2 1.0 11 5.8 8 4.2 - - 191
Independent administrative institution
/ Special public institution / School
corporation / Association etc.
27 64.3 1 2.4 4 9.5 1 2.4 2 4.8 - - 4 9.5 3 7.1 - - 42
Total ( of Organizations) 1,115 52 116 11 5 17 79 51 5 1,451
Ratio (%) 76.8 3.6 8.0 0.8 0.3 1.2 5.4 3.5 0.3
� No responses: 22 organizations
� Others include “Management Committee”, “Parent Company”, “Direct report to Executive Committee”, “Secretariat”, etc.
78
<Table 3> Positioning of the IAA (by Capital)
Unit: Number of organizations
Direct report to
President
Direct report to
Board
Direct report to
Senior
Executive
Direct report to
Audit
Committee
Direct report to
Kansayaku
Direct report to
Executive
Officer
Same level as
other
departments
Belong to a
specific
department
Others Total Positioning
Capital
(Billion yen) # % # % # % # % # % # % # % # % # % #
� 0.9 165 81.3 3 1.5 8 3.9 2 1.0 - - 2 1.0 14 6.9 9 4.4 - - 203
1 � 2.9 156 82.5 5 2.6 13 6.9 1 0.5 - - - - 7 3.7 7 3.7 - - 189
3 � 4.9 101 88.6 1 0.9 5 4.4 2 1.8 1 0.9 - - 1 0.9 2 1.8 1 0.9 114
5 � 9.9 147 79.5 4 2.2 11 5.9 1 0.5 1 0.5 2 1.1 7 3.8 10 5.4 2 1.1 185
10 � 19.9 159 82.0 5 2.6 16 8.2 - - 1 0.5 - - 7 3.6 6 3.1 - - 194
20 � 49.9 144 71.6 13 6.5 24 11.9 - - - - 3 1.5 10 5.0 6 3.0 1 0.5 201
50 � 99.9 79 66.9 7 5.9 16 13.6 2 1.7 - - 3 2.5 8 6.8 3 2.5 - - 118
100 � 199.9 54 71.1 4 5.3 6 7.9 - - - - 3 3.9 8 10.5 1 1.3 - - 76
200 � 999.9 56 57.7 6 6.2 13 13.4 1 1.0 1 1.0 1 1.0 14 14.4 4 4.1 1 1.0 97
1,000 � 18 52.9 3 8.8 4 11.8 1 2.9 - - 3 8.8 3 8.8 2 5.9 - - 34
Total (# of Organizations) 1,079 51 116 10 4 17 79 50 5 1,411
Ratio (%) 76.5 3.6 8.2 0.7 0.3 1.2 5.6 3.5 0.4
� Not applicable: 42 organizations
� No responses: 20 organizations
79
<Table 4> Positioning of the IAA (by Number of Employees)
Unit: Number of organizations
Direct report to
President
Direct report to
Board
Direct report to
Executive
Officer
Direct report to
Audit
Committee
Direct report to
Kansayaku
Direct report to
Executive
Officer
Same status as
other
departments
Belong to a
specific
department
Others Total Positioning
Number of
Employees # % # % # % # % # % # % # % # % # % #
� 100 74 84.1 1 1.1 3 3.4 1 1.1 - - 1 1.1 5 5.7 2 2.3 1 1.1 88
101 � 200 97 82.9 2 1.7 5 4.3 - - 1 0.9 - - 5 4.3 6 5.1 1 0.9 117
201 � 300 93 86,9 2 1.9 4 3.7 2 1.9 - - - - 3 2.8 3 2.8 - - 107
301 � 500 135 79.4 3 1.8 10 5.9 3 1.8 1 0.6 2 1.2 5 2.9 11 6.5 - - 170
501 � 1,000 238 81.2 9 3.1 22 7.5 1 0.3 - - 1 0.3 11 3.8 8 2.7 3 1.0 293
1,001 � 2,000 202 77.1 15 5.7 19 7.3 1 0.4 2 0.8 2 0.8 12 4.6 9 3.4 - - 262
2,001 � 3,000 76 66.1 5 4.3 14 12.2 - - - - 3 2.6 13 11.3 4 3.5 - - 115
3,001 � 5,000 73 69.5 7 6.7 16 15.2 2 1.9 1 1.0 1 1.0 4 3.8 1 1.0 - - 105
5,001 � 10,000 73 69.5 4 3.8 10 9.5 - - - - 3 2.9 11 10.5 4 3.8 - - 105
10,001 � 30,000 28 57.1 2 4.1 5 10.2 1 2.0 - - 3 6.1 7 14.3 3 6.1 - - 49
30,001 � 100,000 12 63.2 - - 5 26.3 - - - - 1 5.3 1 5.3 - - - - 19
100,000 � 1 33.3 - - 1 33.3 - - - - - - 1 33.3 - - - - 3
Total (# of Organizations) 1,102 50 114 11 5 17 78 51 5 1,433
Ratio (%) 76.9 3.5 8.0 0.� 0.3 1.2 5.4 3.6 0.3
� Not applicable: 19 organizations
� No responses: 21 organizations
80
<Table 5> Name of the IAA (by industry)
Unit: Number of organizations
Name
Industry
Audit
Internal Audit
Operational A
udit
Manage
ment A
udit
Inspection
Inspector’s Office
Exam
ination
Legal Au
dit
Operation Inspection
Corporate P
lanning
Com
pliance
Risk M
anagement
Adm
inistration
Audit section in P
resident’s
Office
Audit section in A
ccounting
Busine
ss Mana
gement
Internal Control
Audit G
roup
CS
R
Others
Total
Construction 37 13 2 - - - 1 1 - 1 1 - 1 - 1 1 - 1 - 10 70
Fishing / Food 24 13 2 4 - - - - 1 - 2 1 - - - - - 1 1 4 53
Textile / Paper / Pulp 11 6 3 1 - - - - - 1 - - - - - - - - - 2 24
Chemical 50 31 - 3 - - - - - - 1 - - - - - 1 1 - 4 91
Medicine 18 8 - - - - 1 - - - 2 - - - - - 2 - - 2 33
Oil / Coal / Mining 6 2 - - - - - - - - - - - - - - - - 1 1 10
Rubber 1 2 - 2 - - - - - - - - - - - - - - - - 5
Glass / Soil & Stone 7 3 - 1 - - - - - - - - - - - - 1 1 - 1 14
Steel 11 3 1 - - - - - - - - 1 - - - - - - - 1 17
Metal 15 8 2 1 - - - 1 - - - - - - - - 1 1 - 3 32
Machine 20 27 4 3 - - - - - 4 - - 1 - - - - 1 3 4 67
Electric equipment 40 36 4 12 - - 1 - - 1 1 - - - - 1 1 - - 9 106
Transportation equipment 21 7 5 2 - - - - - - 1 1 - - 1 - 1 - 2 3 44
Precision equipment 8 12 2 4 - - - - - - - - - - - - 1 - - - 27
Misc. manufacturing 22 27 3 2 - - - 1 - 1 - - - 2 - - - - 1 3 62
Trading 40 27 1 - - - 1 - - 1 1 1 1 - - - - 1 1 1 76
Department store / Super market 17 12 3 1 - - - - - 1 1 - - - - - - 1 - 3 39
Various commercial 35 39 1 2 - - - - - - 2 - 2 1 - - - - - 1 83
81
Name
Industry
Audit
Internal Audit
Operational A
udit
Mana
gement A
udit
Inspection
Inspector’s Office
Exam
ination
Legal Au
dit
Operation Inspection
Corporate P
lanning
Com
pliance
Risk M
anagem
ent
Adm
inistration
Audit section in P
resident’s
Office
Audit section in A
ccountin
g
Busine
ss Mana
gement
Internal Control
Audit G
roup
CS
R
Others
Total
Life insurance 7 4 4 - 2 - - - - - - - - - - - - - - - 17
Non-life insurance 3 6 4 - - - - - - - - - - - - - - - - - 13
Finance 104 18 14 6 9 - 1 - - - 1 1 - - - - - 2 - 6 162
Real estate 14 27 3 - 1 - 1 - - 1 - - - - - - 1 - - 3 51
Transportation / Warehouse 36 13 4 - - - - - - 1 1 - 1 - 1 - 1 3 - 8 69
Telecom / Advertising 15 14 2 1 - - 1 - - - 1 - - - - - - - - 6 40
Electric / Gas 5 3 2 1 - - 3 - - - - - - - - - - - - 3 17
Services 78 62 8 8 1 - 5 - - 1 2 1 3 1 - 1 - 2 1 19 193
Independent administrative
institution / Special public
institution / School corporation /
Association etc.
18 13 2 - 1 - - - - - - - - - 1 - - - - 7 42
Total (# of Organizations) 663 436 76 54 14 - 15 3 1 13 17 6 9 4 4 3 10 15 10 104 1457
Ratio (%) 45.5 29.9 5.2 3.7 1.0 - 1.0 0.2 0.1 0.9 1.2 0.4 0.6 0.3 0.3 0.2 0.7 1.0 0.7 7.1
� No responses: 16 organizations
� Others include “internal audit team”, “internal control promoting office”, “corporate planning group”, “examination division”, “legal management department”, etc.
82
<Table 6> Number of auditors who conduct only IAA (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Industry # % # % # % # % # % # % # % # % # % # % # % # % # % #
Construction 16 24.2 15 22.7 9 13.6 11 16.7 3 4.5 2 3.0 3 4.5 1 1.5 - - 6 9.1 - - - - - - 66
Fishing / Food 8 16.3 8 16.3 6 12.2 9 18.4 3 6.1 3 6.1 2 4.1 1 2.0 1 2.0 6 12.2 1 2.0 1 2.0 - - 49
Textile / Paper / Pulp 2 9.5 9 42.9 3 14.3 - - 1 4.8 2 9.5 - - 2 9.5 1 4.8 1 4.8 - - - - - - 21
Chemical 21 24.1 26 29.9 12 13.8 5 5.7 6 6.9 6 6.9 5 5.7 2 2.3 1 1.1 2 2.3 1 1.1 - - - - 87
Medicine 6 18.2 5 15.2 4 12.1 5 15.2 1 3.0 - - 4 12.1 1 3.0 1 3.0 6 18.2 - - - - - - 33
Oil / Coal / Mining - - 3 30.0 3 30.0 - - 1 10.0 - - 1 10.0 - - - - 1 10.0 1 10.0 - - - - 10
Rubber 1 20.0 2 40.0 - - - - 1 20.0 - - - - - - - - - - 1 20.0 - - - - 5
Glass / Soil & Stone 5 38.5 - - 1 7.7 3 23.1 1 7.7 2 15.4 - - - - - - - - 1 7.7 - - - - 13
Steel 6 37.5 2 12.5 2 12.5 1 6.3 2 12.5 - - 1 6.3 - - 2 12.5 - - - - - - - - 16
Metal 12 38.7 8 25.8 5 16.1 3 9.7 - - 1 3.2 - - - - - - 2 6.5 - - - - - - 31
Machine 19 30.6 16 25.8 6 9.7 5 8.1 3 4.8 2 3.2 4 6.5 2 3.2 - - 3 4.8 2 3.2 - - - - 62
Electric equipment 27 26.2 29 28.2 15 14.6 4 3.9 4 3.9 3 2.9 2 1.9 3 2.9 4 3.9 1 1.0 4 3.9 5 4.9 2 1.9 103
Transportation equipment 8 20.5 10 25.6 7 17.9 2 5.1 1 2.6 1 2.6 2 5.1 1 2.6 1 2.6 3 7.7 2 5.1 1 2.6 - - 39
Precision equipment 5 19.2 7 26.9 6 23.1 3 11.5 1 3.8 1 3.8 - - - - - - 2 7.7 1 3.8 - - - - 26
Misc. manufacturing 23 38.3 17 28.3 6 10.0 5 8.3 1 1.7 2 3.3 2 3.3 1 1.7 1 1.7 2 3.3 - - - - - - 60
Trading 25 34.7 16 22.2 9 12.5 6 8.3 3 4.2 2 2.8 1 1.4 - - - - 3 4.2 2 2.8 1 1.4 4 5.6 72
Department store / Super market 5 13.5 8 21.6 6 16.2 4 10.8 6 16.2 3 8.1 1 2.7 1 2.7 - - 1 2.7 2 5.4 - - - - 37
Various commercial 21 26.9 24 30.8 10 12.8 8 10.3 3 3.8 3 3.8 2 2.6 1 1.3 1 1.3 3 3.8 2 2.6 - - - - 78
Life insurance 1 6.3 - - - - - - 1 6.3 3 18.8 - - 2 12.5 - - 2 12.5 2 12.5 3 18.8 2 12.5 16
Non-life insurance - - 1 7.7 - - 2 15.4 - - 1 7.7 - - - - - - 2 15.4 1 7.7 2 15.4 4 30.8 13
Finance 22 13.6 18 11.1 12 7.4 18 11.1 5 3.1 9 5.6 8 4.9 4 2.5 3 1.9 15 9.3 20 12.3 22 13.6 6 3.7 162
Real estate 11 22.0 13 26.0 7 14.0 8 16.0 8 16.0 1 2.0 - - - - - - 2 4.0 - - - - - - 50
Transportation / Warehouse 8 12.7 13 20.6 5 7.9 8 12.7 5 7.9 4 6.3 4 6.3 1 1.6 2 3.2 7 11.1 2 3.2 2 3.2 2 3.2 63
83
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Industry # % # % # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising 9 25.0 7 19.4 5 13.9 4 11.1 1 2.8 - - 1 2.8 1 2.8 - - 3 8.3 4 11.1 1 2.8 - - 36
Electric / Gas 1 5.9 1 5.9 1 5.9 1 5.9 - - 1 5.9 - - - - 1 5.9 5 29.4 1 5.9 3 17.6 2 11.8 17
Services 61 33.2 46 25.0 24 13.0 14 7.6 9 4.9 6 3.3 5 2.7 6 3.3 1 0.5 8 4.3 3 1.6 1 0.5 - - 184
Independent administrative institution /
Special public institution / School
corporation / Association etc.
10 26.3 15 39.5 1 2.6 3 7.9 2 5.3 2 5.3 - - 1 2.6 - - 1 2.6 2 5.3 1 2.6 - - 38
Total (# of Organizations) 333 319 165 132 72 60 48 31 20 87 55 43 22 1,387
Ratio (%) 24.0 23.0 11.9 9.5 5.2 4.3 3.5 2.2 1.4 6.3 4.0 3.1 1.6
� No responses: 86 organizations
84
<Table 7> Number of auditors who conduct only IAA (by Capital)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Capital
(Billion yen)
# % # % # % # % # % # % # % # % # % # % # % # % # % #
� 0.9 84 45.9 45 24.6 26 14.2 16 8.7 3 1.6 - - 3 1.6 2 1.1 1 0.5 3 1.6 - - - - - - 183
1 � 2.9 77 43.0 49 27.4 14 7.8 14 7.8 4 2.2 6 3.4 2 1.1 3 1.7 1 0.6 6 3.4 1 0.6 1 0.6 1 0.6 179
3 � 4.9 41 36.9 34 30.6 12 10.8 16 14.4 1 0.9 3 2.7 2 1.8 2 1,8 - - - - - - - - - - 111
5 � 9.9 36 20.5 57 32.4 43 24.2 16 9.1 6 3.4 5 2.8 4 2.3 1 0.6 2 1.1 5 2.8 - - 1 0.6 - - 176
10 � 19.9 46 24.5 49 26.1 23 12.2 20 10.6 17 9.0 5 2.7 9 4.8 3 1.6 3 1.6 4 2.1 5 2.7 3 1.6 1 0.5 188
20 � 49.9 24 12.4 48 24.9 20 10.4 24 12.4 16 8.3 15 7.8 8 4.1 2 1.0 1 0.5 19 9.8 8 4.1 8 4.1 - - 193
50 � 99.9 6 5.3 14 12.3 15 13.2 9 7.9 13 11.4 10 8.8 7 6.1 7 6.1 1 0.9 13 11.4 10 8.8 5 4.4 4 3.5 114
100 � 199.9 4 5.3 6 8.0 3 4.0 7 9.3 4 5.3 6 8.0 8 10.7 7 9.3 3 4.0 13 17.3 8 10.7 5 6.7 1 1.3 75
200 � 999.9 2 2.1 3 3.1 5 5.2 5 5.2 5 5.2 9 9.3 5 5.2 4 4.1 5 5.2 19 19.6 15 15.5 16 16.5 4 4.1 97
1,000 � 1 2.9 1 2.9 - - 1 2.9 2 5.9 1 2.9 - - - - 2 5.9 5 14.7 7 20.6 4 11.8 10 29.4 34
Total (# of Organizations) 321 306 161 128 71 60 48 31 19 87 54 43 21 1,350
Ratio (%) 23.8 22.7 11.9 9.5 5.3 4.4 3.6 2.3 1.4 6.4 4.0 3.2 1.6
� Not applicable: 42 organizations
� No responses: 81 organizations
85
<Table 8> Number of auditors who conduct only IAA (by Number of Employees)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Number of
Employees
# % # % # % # % # % # % # % # % # % # % # % # % # % #
� 100 47 59.5 14 17.7 7 8.9 4 5.1 5 6.3 1 1.3 - - - - 1 1.3 - - - - - - - - 79
101 � 200 49 45.0 30 27.5 17 15.6 5 4.6 1 0.9 2 1.8 - - - - - - 3 2.8 2 1.8 - - - - 109
201 � 300 42 42.9 30 30.6 6 6.1 14 14.3 3 3.1 1 1.0 - - - - - - 2 2.0 - - - - - - 98
301 � 500 63 40.9 46 29.9 15 9.7 11 7.1 4 2.6 3 1.9 5 3.2 3 1.9 1 0.6 3 1.9 - - - - - - 154
501 � 1,000 72 25.7 93 33.2 33 11.8 34 12.1 14 5.0 12 4.3 3 1.1 4 1.4 3 1.1 9 3.2 3 1.1 - - - - 280
1,001 � 2,000 35 13.6 61 23.6 48 18.6 35 13.6 16 6.2 16 6.2 6 2.3 6 2.3 3 1.2 12 4.7 13 5.0 7 2.7 - - 258
2,001 � 3,000 10 8.8 23 20.4 15 13.3 10 8.8 8 7.1 8 7.1 11 9.7 4 3.5 1 0.9 5 4.4 8 7.1 10 8.8 - - 113
3,001 � 5,000 7 6.7 7 6.7 15 14.4 6 5.8 13 12.5 7 6.7 8 7.7 6 5.8 3 2.9 17 16.3 4 3.8 8 7.7 3 2.9 104
5,001 � 10,000 5 4.8 8 7.7 8 7.7 6 5.8 4 3.8 5 4.8 12 11.5 3 2.9 7 6.7 22 21.2 12 11.5 7 6.7 5 4.8 104
10,001 � 30,000 - - 1 2.0 1 2.0 3 6.1 4 8.2 2 4.1 2 4.1 5 10.2 1 2.0 9 18.4 7 14.3 7 14.3 7 14.3 49
30,001 � 100,000 1 5.3 - - - - 1 5.3 - - 2 10.5 - - - - - - 4 21.1 4 21.1 2 10.5 5 26.3 19
100,000 � - - - - - - - - - - - - - - - - - - - - 1 25.0 2 50.0 1 25.0 4
Total (# of Organizations) 331 313 165 129 72 59 47 31 20 86 54 43 21 1,371
Ratio (%) 24.1 22.8 12.0 9.4 5.3 4.3 3.4 2.3 1.5 6.3 3.9 3.1 1.5
� Not applicable: 19 organizations
� No responses: 83 organizations
86
<Table 9> Number of auditors who are also assigned non-IAA (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Industry
# % # % # % # % # % # % # % # % # % # % # % # % # % #
Construction 11 40.7 7 25.9 5 18.5 - - 2 7.4 1 3.7 - - - - - - 1 3.7 - - - - - - 27
Fishing / Food 4 30.8 4 30.8 1 7.7 3 23.1 - - - - - - - - - - - - - - 1 7.7 - - 13
Textile / Paper / Pulp 4 33.3 3 25.0 3 25.0 - - - - - - 1 8.3 - - - - - - 1 8.3 - - - - 12
Chemical 18 58.1 8 25.8 1 3.2 1 3.2 - - - - - - 1 3.2 2 6.5 - - - - - - - - 31
Medicine 5 83.3 - - 1 16.7 - - - - - - - - - - - - - - - - - - - - 6
Oil / Coal / Mining - - 1 25.0 1 25.0 - - 2 50.0 - - - - - - - - - - - - - - - - 4
Rubber 1 50.0 - - 1 50.0 - - - - - - - - - - - - - - - - - - - - 2
Glass / Soil & Stone 3 42.9 2 28.6 1 14.3 - - - - - - 1 14.3 - - - - - - - - - - - - 7
Steel 7 77.8 - - - - 1 11.1 - - - - - - 1 11.1 - - - - - - - - - - 9
Metal 3 37.5 3 37.5 - - 1 12.5 - - - - - - - - - - - - - - 1 12.5 - - 8
Machine 12 48.0 6 24.0 4 16.0 - - - - 1 4.0 - - - - 1 4.0 - - 1 4.0 - - - - 25
Electric equipment 15 45.5 9 27.3 1 3.0 2 6.1 1 3.0 - - 2 6.1 - - - - 2 6.1 1 3.0 - - - - 33
Transportation equipment 8 47.1 4 23.5 1 5.9 1 5.9 2 11.8 - - - - - - - - 1 5.9 - - - - - - 17
Precision equipment 4 44.4 - - 2 22.2 - - 1 11.1 2 22.2 - - - - - - - - - - - - - - 9
Misc. manufacturing 8 57.1 5 35.7 - - - - - - - - - - - - - - 1 7.1 - - - - - - 14
Trading 8 42.1 6 31.6 1 5.3 2 10.5 - - 1 5.3 - - - - - - - - 1 5.3 - - - - 19
Department store / Super market 3 33.3 5 55.6 - - 1 11.1 - - - - - - - - - - - - - - - - - - 9
Various commercial 10 62.5 3 18.8 2 12.5 - - 1 6.3 - - - - - - - - - - - - - - - - 16
Life insurance - - 1 50.0 - - - - 1 50.0 - - - - - - - - - - - - - - - - 2
Non-life insurance - - - - - - 1 50.0 1 50.0 - - - - - - - - - - - - - - - - 2
Finance 18 51.4 10 28.6 3 8.6 2 5.7 - - - - - - - - - - 1 2.9 - - - - 1 2.9 35
Real estate 7 58.3 2 16.7 1 8.3 - - - - 1 8.3 1 8.3 - - - - - - - - - - - - 12
87
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Industry
# % # % # % # % # % # % # % # % # % # % # % # % # % #
Transportation / Warehouse 11 50.0 3 13.6 4 18.2 - - 3 13.6 - - 1 4.5 - - - - - - - - - - - - 22
Telecom / Advertising 7 53.8 1 7.7 5 38.5 - - - - - - - - - - - - - - - - - - - - 13
Electric / Gas 2 50.0 2 50.0 - - - - - - - - - - - - - - - - - - - - - - 4
Services 25 49.0 6 11.8 9 17.6 3 5.9 2 3.9 2 3.9 1 2.0 1 2.0 2 3.9 - - - - - - - - 51
Independent administrative institution /
Special public institution / School
corporation / Association etc.
5 33.3 3 20.0 2 13.3 2 13.3 - - - - - - 2 13.3 - - - - 1 6.7 - - - - 15
Total (# of Organizations) 199 94 49 20 16 8 7 5 5 6 5 2 1 417
Ratio (%) 47.7 22.5 11.8 4.8 3.8 1.9 1.7 1.2 1.2 1.4 1.2 0.5 0.2
� No responses: 1,056 organizations
88
<Table 10> Number of auditors who are not permanent employees (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Industry
# % # % # % # % # % # % # % # % # % # % # % # % # % #
Construction 3 75.0 1 25.0 - - - - - - - - - - - - - - - - - - - - - - 4
Fishing / Food 4 80.0 - - - - 1 20.0 - - - - - - - - - - - - - - - - - - 5
Textile / Paper / Pulp 4 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 4
Chemical 4 57.1 1 14.3 - - - - 1 14.3 - - - - - - - - - - - - - - 1 14.3 7
Medicine 5 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 5
Oil / Coal / Mining 1 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 1
Rubber - - - - 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Glass / Soil & Stone 2 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 2
Steel 1 100.0 - - - - - - - - - - - - - - - - - - - - - - 1
Metal 2 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 2
Machine 3 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 3
Electric equipment 12 80.0 3 20.0 - - - - - - - - - - - - - - - - - - - - - - 15
Transportation equipment 4 80.0 - - - - - - - - - - - - - - - - - - 1 20.0 - - - - 5
Precision equipment 2 66.7 - - - - - - - - - - - - - - - - - - - - - - 1 33.3 3
Misc. manufacturing 4 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 4
Trading 4 66.7 2 33.3 - - - - - - - - - - - - - - - - - - - - - - 6
Department store / Super market 3 60.0 2 40.0 - - - - - - - - - - - - - - - - - - - - - - 5
Various commercial 11 91.7 - - 1 8.3 - - - - - - - - - - - - - - - - - - - - 12
Life insurance 4 44.4 2 22.2 1 11.1 1 11.1 - - 1 11.1 - - - - - - - - - - - - - - 9
Non-life insurance 1 25.0 2 50.0 1 25.0 - - - - - - - - - - - - - - - - - - - - 4
Finance 24 54.5 9 20.5 1 2.3 3 6.8 - - - - 1 2.3 - - - - 5 11.4 1 2.3 - - - - 44
Real estate 4 66.7 1 16.7 - - 1 16.7 - - - - - - - - - - - - - - - - - - 6
Transportation / Warehouse 3 42.9 3 42.9 1 14.3 - - - - - - - - - - - - - - - - - - - - 7
89
1 2 3 4 5 6 7 8 9 10 � 14 15 � 24 25 � 49 50 � Total # of auditors
Industry
# % # % # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising 9 75.0 - - - - - - 1 8.3 1 8.3 - - - - - - - - 1 8.3 - - - - 12
Electric / Gas 3 100.0 - - - - - - - - - - - - - - - - - - - - - - - - 3
Services 13 72.2 4 22.2 - - - - - - - - - - - - - - 1 5.6 - - - - - - 18
Independent administrative institution /
Special public institution / School
corporation / Association etc.
8 80.0 1 10.0 1 10.0 - - - - - - - - - - - - - - - - - - - - 10
Total (# of Organizations) 137 32 7 6 2 2 1 - - 6 3 - 2 198
Ratio (%) 69.2 16.2 3.5 3.1 1.0 1.0 0.5 - - 3.0 1.5 - 1.0
� No responses: 1,275 organizations
90
<Table 11> Other activities which the IAA is assigned (by industry)
Unit: Number of organizations
Accoun
ting / F
inance
Mate
rial / Pu
rchasing
Pro
ductio
n
Sa
les / Marketing
Gen
eral A
ffairs /
Hu
man
Reso
urces
Ad
min
istration
Info
rmation
System
Research
/
Develop
ment
Pla
nning / P
R
Enviro
nm
ent
Man
agem
ent
Legal / C
ompliance
President’s o
ffice /
Secretary o
ffice
Advertisem
ent
Wh
istle blow
ing
Risk M
anagem
ent
Reg
ulatory relatio
ns
Oth
ers
Total
Other activities assig
ned
Industry # % # % # % # % # % # % # % # % # % # % # % # % # % # % # % # % # % #
Construction 10 20.0 1 2.0 3 6.0 2 4.0 8 16.0 3 6.0 3 6.0 1 2.0 1 2.0 2 4.0 5 10.0 1 2.0 - - 1 2.0 2 4.0 - - 7 14.0 50
Fishing / Food 2 10.5 - - 1 5.3 1 5.3 3 15.8 1 5.3 1 5.3 - - - - - - 3 15.8 - - - - 3 15.8 2 10.5 - - 2 10.5 19
Textile / Paper / Pulp 3 13.6 3 13.6 - - - - 2 9.1 1 4.5 1 4.5 - - 3 13.6 - - 2 9.1 - - - - 1 4.5 - - - - 6 27.3 22
Chemical 8 17.0 1 2.1 1 2.1 1 2.1 6 12.8 2 4.3 3 6.4 2 4.3 4 8.5 3 6.4 5 10.6 - - 2 4.3 2 4.3 - - - - 7 14.9 47
Medicine - - - - - - - - 2 28.6 - - - - - - - - - - - - - - - - - - - - - - 5 71.4 7
Oil / Coal / Mining 2 40.0 - - - - - - - - 1 20.0 - - - - - - - - - - - - - - - - - - - - 2 40.0 5
Rubber - - - - - - - - - - 1 100.0 - - - - - - - - - - - - - - - - - - - - - - 1
Glass / Soil & Stone 2 18.2 - - 1 9.1 2 18.2 1 9.1 - - - - - - - - - - 1 9.1 - - - - 1 9.1 1 9.1 - - 2 18.2 11
Steel 3 17.6 1 5.9 1 5.9 2 11.8 2 11.8 1 5.9 1 5.9 1 5.9 - - - - 3 17.6 - - - - - - - - - - 2 11.8 17
Metal 4 30.8 - - - - - - 1 7.7 2 15.4 1 7.7 - - 1 7.7 - - - - 2 15.4 - - - - - - - - 2 15.4 13
Machine 4 11.8 - - - - 3 8.8 4 11.8 4 11.8 1 2.9 - - 3 8.8 1 2.9 6 17.6 1 2.9 - - - - 1 2.9 - - 6 17.6 34
Electric equipment 12 19.7 4 6.6 3 4.9 3 4.9 5 8.2 2 3.3 9 14.8 4 6.6 5 8.2 2 3.3 3 4.9 1 1.6 1 1.6 - - - - 7 11.5 61
Transportation equipment 6 15.8 4 10.5 3 7.9 2 5.3 5 13.2 3 7.9 2 5.3 1 2.6 5 13.2 3 7.9 1 2.6 - - - - - - 1 2.6 - - 2 5.3 38
Precision equipment 3 14.3 - - 1 4.8 1 4.8 1 4.8 3 14.3 3 14.3 - - - - - - 5 23.8 1 4.8 - - - - 1 4.8 - - 2 9.5 21
Misc. manufacturing 3 17.6 - - - - 1 5.9 5 29.4 - - 1 5.9 1 5.9 2 11.8 - - 1 5.9 - - - - - - 1 5.9 - - 2 11.8 17
Trading 7 29.2 - - - - 2 8.3 1 4.2 2 8.3 - - - - 2 8.3 2 8.3 2 8.3 - - - - - - 3 12.5 - - 3 12.5 24
Department store / Super market 1 5.3 1 5.3 - - - - 1 5.3 2 10.5 1 5.3 - - 2 10.5 1 5.3 1 5.3 - - - - 3 15.8 2 10.5 1 5.3 3 15.8 19
Various commercial 4 26.7 - - - - 1 6.7 1 6.7 1 6.7 2 13.3 - - - - 1 6.7 2 13.3 - - - - - - - - 3 20.0 15
Life insurance - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 33.3 - - 2 66.7 3
Non-life insurance 1 33.3 - - - - - - - - 1 33.3 - - - - - - - - - - - - - - - - - - - - 1 33.3 3
91
Acco
unting / F
inance
Mate
rial / Pu
rchasin
g
Pro
ductio
n
Sales / M
arketing
Gen
era
l Affairs /
Hu
man
Reso
urces
Ad
min
istration
Info
rmation
System
Research
/
Develop
ment
Pla
nning / P
R
Enviro
nm
ent
Man
agem
ent
Legal / Co
mp
liance
President’s o
ffice /
Secreta
ry office
Ad
vertisemen
t
Wh
istle b
lowin
g
Risk M
anag
emen
t
Reg
ulatory relatio
ns
Oth
ers
Total
Other activities assig
ned
Industry # % # % # % # % # % # % # % # % # % # % # % # % # % # % # % # % # % #
Finance 4 7.7 2 3.8 - - 7 13.5 10 19.2 9 17.3 1 1.9 - - 2 3.8 - - 3 5.8 - - - - - - 3 5.8 1 1.9 10 19.2 52
Real estate 6 27.3 - - - - 1 4.5 3 13.6 - - 1 4.5 - - 2 9.1 - - 2 9.1 1 4.5 - - - - 2 9.1 - - 4 18.2 22
Transportation / Warehouse 5 18.5 - - - - 1 3.7 5 18.5 1 3.7 - - - - - - 2 7.4 3 11.1 - - - - 1 3.7 1 3.7 - - 8 29.6 27
Telecom / Advertising 1 5.9 - - 1 5.9 - - 2 11.8 1 5.9 2 11.8 - - - - - - 2 11.8 - - - - 2 11.8 2 11.8 - - 4 23.5 17
Electric / Gas - - - - 1 16.7 - - 1 16.7 1 16.7 - - - - - - - - - - - - - - - - 1 16.7 - - 2 33.3 6
Services 13 14.3 1 1.1 2 2.2 6 6.6 12 13.2 14 15.4 6 6.6 1 1.1 5 5.5 1 1.1 8 8.8 1 1.1 - - 5 5.5 5 5.5 1 1.1 10 11.0 91
Independent administrative institution /
Special public institution / School
corporation / Association etc.
3 13.6 - - - - 1 4.5 2 9.1 1 4.5 1 4.5 1 4.5 4 18.2 1 4.5 2 9.1 - - - - 2 9.1 1 4.5 - - 3 13.6 22
Total (# of Organizations) 107 18 18 37 83 57 40 12 41 18 59 10 3 21 30 3 107 664
Ratio (%) 25.8 4.3 4.3 8.9 20.0 13.7 9.6 2.9 9.9 4.3 14.2 2.4 0.7 5.1 7.2 0.7 25.8
� No responses: 2 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (415 organizations)
* 100
� Others include “CAE of other business units” and “CSR”.
92
93
<Table 12> Average years of audit experiences (by industry)
Unit: Number of organizations
Less than
3 years
3�less than 5
years
5�less than 10
years
10 years or
more
Total Experiences
Industry
# % # % # % # % #
Construction 41 59.4 20 29.0 7 10.1 1 1.4 69
Fishing / Food 36 67.9 12 22.6 4 7.5 1 1.9 53
Textile / Paper / Pulp 16 66.7 5 20.8 2 8.3 1 4.2 24
Chemical 61 67.0 22 24.2 8 8.8 - - 91 Medicine 15 46.9 13 40.6 3 9.4 1 3.1 32
Oil / Coal / Mining 7 70.0 3 30.0 - - - - 10
Rubber 3 60.0 1 20.0 1 20.0 - - 5
Glass / Soil & Stone 8 66.7 1 8.3 3 25.0 - - 12
Steel 11 64.7 5 29.4 1 5.9 - - 17 Metal 22 68.8 8 25.0 2 6.3 - - 32
Machine 42 61.8 17 25.0 7 10.3 2 2.9 68
Electric equipment 64 61.5 29 27.9 11 10.6 - - 104
Transportation equipment 30 68.2 12 27.3 2 4.5 - - 44
Precision equipment 18 66.7 5 18.5 4 14.8 - - 27 Misc. manufacturing 44 71.0 14 22.6 4 6.5 - - 62
Trading 38 50.7 25 33.3 8 10.7 4 5.3 75
Department store / Super market 22 55.0 11 27.5 4 10.0 3 7.5 40
Various commercial 52 62.7 25 30.1 6 7.2 - - 83
Life insurance 9 56.3 4 25.0 3 18.8 - - 16
Non-life insurance 11 84.6 2 15.4 - - - - 13
Finance 101 60.8 56 33.7 7 4.2 2 1.2 166 Real estate 42 82.4 7 13.7 1 2.0 1 2.0 51
Transportation / Warehouse 48 67.6 20 28.2 3 4.2 - - 71
Telecom / Advertising 21 53.8 13 33.3 5 12.8 - - 39
Electric / Gas 11 61.1 6 33.3 1 5.6 - - 18
Services 105 55.9 60 31.9 18 9.6 5 2.7 188 Independent administrative institution / Special
public institution / School corporation /
Association etc.
29 72.5 8 20.0 3 7.5 - - 40
Total (# of Organizations) 907 404 118 21 1,450
Ratio (%) 62.6 27.9 8.1 1.4
� No responses: 23 organizations
94
<Table 13> Average years of audit experiences (by Number of Employees)
Unit: Number of organizations
Less than
3 years
3�less than 5
years
5�less than 10
years
10 years or
more
Total Experiences
# of Employees
# % # % # % # % #
� 100 58 65.2 17 19.1 9 10.1 5 5.6 89
101 � 200 75 64.1 34 29.1 4 3.4 4 3.4 117
201 � 300 72 66.1 26 23.9 8 7.3 3 2.8 109
301 � 500 109 64.5 37 21.9 20 11.8 3 1.8 169
501 � 1,000 182 62.3 79 27.1 27 9.2 4 1.4 292
1,001 � 2,000 174 66.7 68 26.1 19 7.3 - - 261
2,001 � 3,000 69 61.6 35 31.3 8 7.1 - - 112
3,001 � 5,000 53 51.0 43 41.3 7 6.7 1 1.0 104
5,001 � 10,000 61 57.5 36 34.0 9 8.5 - - 106
10,001 � 30,000 28 57.1 17 34.7 4 8.2 - - 49
30,001 � 100,000 9 47.4 8 42.1 1 5.3 1 5.3 19
100,000 � 2 50.0 1 25.0 1 25.0 - - 4
Total (# of Organizations) 892 401 117 21 1,431
Ratio (%) 62.3 28.0 8.2 1.5
� Not applicable: 19 organizations
� No responses: 23 organizations
95
<Table 14> Audit training for internal auditors (by industry)
Unit: Number of organizations
Within
organization
Outside of
organization
Both within
and outside of
organization
No training Total Training conducting
Industry # % # % # % # % #
Construction 5 7.1 47 67.1 14 20.0 4 5.7 70
Fishing / Food 2 3.8 29 54.7 21 39.6 1 1.9 53
Textile / Paper / Pulp 4 17.4 13 56.5 6 26.1 - - 23 Chemical 3 3.3 64 70.3 21 23.1 3 3.3 91
Medicine 1 3.1 16 50.0 15 46.9 - - 32 Oil / Coal / Mining - - 5 55.6 3 33.3 1 11.1 9
Rubber - - 4 80.0 1 20.0 - - 5
Glass / Soil & Stone 1 7.1 10 71.4 1 7.1 2 14.3 14
Steel - - 12 70.6 5 29.4 - - 17
Metal 1 3.2 23 74.2 3 9.7 4 12.9 31 Machine 2 2.9 46 67.6 18 26.5 2 2.9 68
Electric equipment 4 3.9 62 60.2 34 33.0 3 2.9 103
Transportation equipment - - 32 72.7 11 25.0 1 2.3 44
Precision equipment 1 3.7 22 81.5 4 14.8 - - 27
Misc. manufacturing 2 3.3 44 72.1 13 21.3 2 3.3 61 Trading 5 6.6 48 63.2 19 25.0 4 5.3 76
Department store / Super market 4 10.0 26 65.0 9 22.5 1 2.5 40
Various commercial 3 3.6 57 67.9 19 22.6 5 6.0 84
Life insurance - - 7 41.2 10 58.8 - - 17
Non-life insurance 1 7.7 4 30.8 8 61.5 - - 13
Finance 11 6.6 81 48.5 64 38.3 11 6.6 167
Real estate 1 2.0 34 66.7 13 25.5 3 5.9 51 Transportation / Warehouse 2 2.8 47 66.2 18 25.4 4 5.6 71
Telecom / Advertising - - 26 65.0 13 32.5 1 2.5 40
Electric / Gas - - 11 61.1 7 38.9 - - 18
Services 6 3.1 123 64.4 47 24.6 15 7.9 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
2 4.8 31 73.8 4 9.5 5 11.9 42
Total (# of Organizations) 61 924 401 72 1,458 Ratio (%) 4.2 63.4 27.5 4.9
Total (# of Organizations) 1,386 72 1,458
Ratio (%) 95.1 4.9
� No responses: 15 organizations
96
97
<Table 15> Number of organizations which had QIA (Qualified Internal Auditor) holders, CIA (Certified Internal Auditor) holders and other internal audit related
qualification holders
Unit: Number of organizations
QIA
(Qualified Internal Au
ditor)
QISIA
(Qualified
Information
System Internal
Auditor)
CFIA (Certified
Financial Internal
Auditor)
CIA
(Certified Internal
Auditor)
CCSA
(Certification in
Control
Self-Assessment)
CFSA
(Certified
Financial Services
Auditor)
None Total Qualification
Industry
# % # % # % # % # % # % # % #
Construction 13 17.3 2 2.7 - - 5 6.7 - - - - 55 73.3 75
Fishing / Food 26 41.9 3 4.8 - - 6 9.7 1 1.6 - - 26 41.9 62
Textile / Paper / Pulp 6 23.1 1 3.8 - - 1 3.8 - - - - 18 69.2 26
Chemical 31 30.4 4 3.9 - - 10 9.8 1 1.0 - - 56 54.9 102
Medicine 19 38.8 4 8.2 - - 12 24.5 1 2.0 - - 13 26.5 49
Oil / Coal / Mining 6 46.2 1 7.7 - - 3 23.1 - - - - 3 23.1 13
Rubber 1 16.7 - - - - 2 33.3 - - - - 3 50.0 6
Glass / Soil & Stone 7 46.7 - - - - 1 6.7 - - - - 7 46.7 15
Steel 4 21.1 - - - - 2 10.5 - - - - 13 68.4 19
Metal 6 17.6 2 5.9 - - - - - - - - 26 76.5 34
Machine 16 21.3 3 4.0 1 1.3 10 13.3 - - - - 45 60.0 75
Electric equipment 37 28.2 9 6.9 - - 19 14.5 4 3.1 - - 62 47.3 131
Transportation equipment 12 23.1 3 5.8 - - 7 13.5 1 1.9 - - 29 55.8 52
Precision equipment 8 25.8 1 3.2 - - 4 12.9 - - - - 18 58.1 31
Misc. manufacturing 15 22.4 2 3.0 - - 4 6.0 1 1.5 - - 45 67.2 67
Trading 19 21.3 3 3.4 - - 9 10.1 2 2.2 1 1.1 55 61.8 89
Department store / Super market 11 23.4 4 8.5 - - 3 6.4 - - - - 29 61.7 47
Various commercial 18 20.0 2 2.2 - - 8 8.9 1 1.1 - - 61 67.8 90
Life insurance 6 16.2 1 2.7 6 16.2 11 29.7 3 8.1 5 13.5 5 13.5 37
98
QIA
(Qualified Internal Au
ditor)
QISIA
(Qualified
Information
System Internal
Auditor)
CFIA (Certified
Financial Internal
Auditor)
CIA
(Certified Internal
Auditor)
CCSA
(Certification in
Control
Self-Assessment)
CFSA
(Certified
Financial Services
Auditor)
None Total Qualification
Industry
# % # % # % # % # % # % # % #
Non-life insurance 4 14.3 2 7.1 7 25.0 8 28.6 1 3.6 4 14.3 2 7.1 28
Finance 16 7.1 10 4.5 50 22.3 32 14.3 4 1.8 25 11.2 87 38.8 224
Real estate 17 30.4 - - 1 1.8 7 12.5 - - - - 31 55.4 56
Transportation / Warehouse 23 27.4 3 3.6 - - 11 13.1 - - - - 47 56.0 84
Telecom / Advertising 23 45.1 4 7.8 1 2.0 8 15.7 - - - - 15 29.4 51
Electric / Gas 11 40.7 1 3.7 - - 9 33.3 2 7.4 - - 4 14.8 27
Services 71 30.5 12 5.2 1 0.4 33 14.2 4 1.7 2 0.9 110 47.2 233
Independent administrative institution /
Special public institution / School
corporation / Association etc.
8 17.4 1 2.2 - - 4 8.7 - - - - 33 71.7 46
Total (# of Organizations) 434 78 67 229 26 37 898 1,769
Ratio (%) 29.7 5.3 4.6 15.7 1.8 2.5 50.8
� No responses: 13 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (1,460
organizations) * 100
99
<Table 16> Number of QIA (Qualified Internal Auditor) holders (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of QIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Construction 6 46.2 4 30.8 - - 1 7.7 1 7.7 1 7.7 - - - - - - - - - - 13
Fishing / Food 7 26.9 8 30.8 3 11.5 3 11.5 1 3.8 - - 1 3.8 2 7.7 1 3.8 - - - - 26
Textile / Paper / Pulp 1 16.7 4 66.7 - - - - - - - - - - 1 16.7 - - - - - - 6
Chemical 10 33.3 6 20.0 6 20.0 6 20.0 1 3.3 1 3.3 1 3.3 - - - - - - - - 30 Medicine 1 5.3 7 36.8 1 5.3 3 15.8 1 5.3 - - 2 10.5 3 15.8 - - 1 5.3 - - 19
Oil / Coal / Mining 3 50.0 - - 1 16.7 1 16.7 - - 1 16.7 - - - - - - - - - - 6
Rubber 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Glass / Soil & Stone 4 57.1 - - 1 14.3 1 14.3 - - - - - - - - - - 1 14.3 - - 7
Steel 4 100.0 - - - - - - - - - - - - - - - - - - - - 4 Metal 3 50.0 - - 1 16.7 1 16.7 - - - - - - - - 1 16.7 - - - - 6
Machine 9 56.3 1 6.3 1 6.3 2 12.5 2 12.5 - - 1 6.3 - - - - - - - - 16
Electric equipment 13 35.1 6 16.2 3 8.1 5 13.5 2 5.4 - - 2 5.4 1 2.7 3 8.1 2 5.4 37
Transportation equipment 7 58.3 1 8.3 1 8.3 1 8.3 1 8.3 - - - - - - 1 8.3 - - - - 12
Precision equipment 5 62.5 1 12.5 - - - - - - - - - - 1 12.5 - - 1 12.5 - - 8 Misc. manufacturing 7 43.8 3 18.8 3 18.8 1 6.3 1 6.3 - - - - - - - - - - - - 16
Trading 6 31.6 4 21.1 - - 2 10.5 - - 1 5.3 - - 1 5.3 - - 2 10.5 3 15.8 19
Department store / Super market 2 18.2 4 36.4 - - 3 27.3 - - - - 1 9.1 - - - - 1 9.1 - - 11
Various commercial 9 50.0 3 16.7 3 16.7 3 16.7 - - - - - - - - - - - - - - 18
Life insurance 2 33.3 1 16.7 2 33.3 - - - - - - - - - - - - 1 16.7 - - 6
Non-life insurance 2 50.0 - - 1 25.0 - - - - 1 25.0 - - - - - - - - - - 4
Finance 9 52.9 5 29.4 1 5.9 - - 1 5.9 - - - - - - - - - - - - 17 Real estate 10 58.8 4 23.5 2 11.8 - - 1 5.9 - - - - - - - - - - - - 17
Transportation / Warehouse 7 30.4 5 21.7 2 8.7 4 17.4 3 13.0 - - - - - - 1 4.3 1 4.3 - - 23
100
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of QIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising 15 65.2 3 13.0 1 4.3 1 4.3 - - - - - - 1 4.3 - - 2 8.7 - - 23
Electric / Gas 3 27.3 1 9.1 - - 2 18.2 1 9.1 1 9.1 1 9.1 - - - - 2 18.2 - - 11
Services 42 60.0 11 15.7 6 8.6 7 10.0 1 1.4 - - 1 1.4 1 1.4 - - 2 2.9 - - 70
Independent administrative institution /
Special public institution / School
corporation / Association etc.
7 87.5 1 12.5 - - - - - - - - - - - - - - - - - - 8
Total (# of Organizations) 195 83 39 47 17 6 10 10 5 17 5 434 Ratio (%) 44.9 19.1 9.0 10.8 3.9 1.4 2.3 2.3 1.2 3.9 1.2
101
<Table 17> Number of QIA (Qualified Internal Auditor) holders (by Number of Employees)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of QIA
Number of Employees # % # % # % # % # % # % # % # % # % # % # % #
� 100 12 80.0 1 6.7 1 6.7 1 6.7 - - - - - - - - - - - - - - 15
101 � 200 16 76.2 3 14.3 - - 1 4.8 - - - - - - - - - - 1 4.8 - - 21
201 � 300 14 87.5 2 12.5 - - - - - - - - - - - - - - - - - - 16
301 � 500 28 77.8 5 13.9 1 2.8 2 5.6 - - - - - - - - - - - - - - 36
501 � 1,000 35 53.0 16 24.2 6 9.1 2 3.0 5 7.6 - - - - 2 3.0 - - - - - - 66
1,001 � 2,000 44 50.6 23 26.4 9 10.3 6 6.9 4 4.6 1 1.1 - - - - - - - - - - 87
2,001 � 3,000 20 40.8 5 10.2 6 12.2 12 24.5 - - - - - - 4 8.2 - - 2 4.1 - - 49
3,001 � 5,000 11 20.8 13 24.5 6 11.3 5 9.4 4 7.5 2 3.8 3 5.7 2 3.8 4 7.5 2 3.8 1 1.9 53
5,001 � 10,000 9 17.0 11 20.8 4 7.5 12 22.6 2 3.8 2 3.8 5 9.4 1 1.9 - - 5 9.4 2 3.8 53
10,001 � 30,000 5 18.5 3 11.1 5 18.5 4 14.8 2 7.4 1 3.7 2 7.4 1 3.7 1 3.7 2 7.4 1 3.7 27
30,001 � 100,000 - - 1 12.5 - - 1 12.5 - - - - - - - - - - 5 62.5 1 12.5 8
100,000 � - - - - 1 50.0 1 50.0 - - - - - - - - - - - - - - 2
Total (# of Organizations) 194 83 39 47 17 6 10 10 5 17 5 433
Ratio (%) 44.8 19.2 9.0 10.9 3.9 1.4 2.3 2.3 1.2 3.9 1.2
� Not applicable: 1 organization
102
<Table 18> Number of QISIA (Qualified Information System Internal Auditor) holders (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of QISIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Construction 1 50.0 - - 1 50.0 - - - - - - - - - - - - - - - - 2
Fishing / Food 2 66.7 1 33.3 - - - - - - - - - - - - - - - - - - 3
Textile / Paper / Pulp 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Chemical 3 75.0 1 25.0 - - - - - - - - - - - - - - - - - - 4 Medicine 3 75.0 - - 1 25.0 - - - - - - - - - - - - - - - - 4
Oil / Coal / Mining 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Rubber - - - - - - - - - - - - - - - - - - - - - - -
Glass / Soil & Stone - - - - - - - - - - - - - - - - - - - - - - -
Steel - - - - - - - - - - - - - - - - - - - - - - - Metal 2 100.0 - - - - - - - - - - - - - - - - - - - - 2
Machine 2 66.7 1 33.3 - - - - - - - - - - - - - - - - - - 3
Electric equipment 5 55.6 2 22.2 2 22.2 - - - - - - - - - - - - - - - - 9
Transportation equipment 2 66.7 1 33.3 - - - - - - - - - - - - - - - - - - 3
Precision equipment 1 100.0 - - - - - - - - - - - - - - - - - - - - 1 Misc. manufacturing 2 100.0 - - - - - - - - - - - - - - - - - - - - 2
Trading - - 1 33.3 - - - - 1 33.3 1 33.3 - - - - - - - - - - 3
Department store / Super market 3 75.0 - - - - - - - - - - 1 25.0 - - - - - - - - 4
Various commercial 1 50.0 1 50.0 - - - - - - - - - - - - - - - - - - 2
Life insurance 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Non-life insurance 1 50.0 1 50.0 - - - - - - - - - - - - - - - - - - 2
Finance 7 70.0 2 20.0 1 10.0 - - - - - - - - - - - - - - - - 10 Real estate - - - - - - - - - - - - - - - - - - - - - - -
Transportation / Warehouse 1 33.3 1 33.3 1 33.3 - - - - - - - - - - - - - - - - 3
103
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of QISIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising 1 25.0 2 50.0 1 25.0 - - - - - - - - - - - - - - - - 4
Electric / Gas - - 1 100.0 - - - - - - - - - - - - - - - - - - 1
Services 8 66.7 3 25.0 1 8.3 - - - - - - - - - - - - - - - - 12
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Total (# of Organizations) 49 18 8 - 1 1 1 - - - - 78 Ratio (%) 62.8 23.1 10.3 - 1.3 1.3 1.3 - - - -
104
<Table 19> Number of CFIA (Certified Financial Internal Auditor) holders (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CFIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Construction - - - - - - - - - - - - - - - - - - - - - - -
Fishing / Food - - - - - - - - - - - - - - - - - - - - - - -
Textile / Paper / Pulp - - - - - - - - - - - - - - - - - - - - - - -
Chemical - - - - - - - - - - - - - - - - - - - - - - - Medicine - - - - - - - - - - - - - - - - - - - - - - -
Oil / Coal / Mining - - - - - - - - - - - - - - - - - - - - - - -
Rubber - - - - - - - - - - - - - - - - - - - - - - -
Glass / Soil & Stone - - - - - - - - - - - - - - - - - - - - - - -
Steel - - - - - - - - - - - - - - - - - - - - - - - Metal - - - - - - - - - - - - - - - - - - - - - - -
Machine - - - - 1 100.0 - - - - - - - - - - - - - - - - 1
Electric equipment - - - - - - - - - - - - - - - - - - - - - - -
Transportation equipment - - - - - - - - - - - - - - - - - - - - - - -
Precision equipment - - - - - - - - - - - - - - - - - - - - - - - Misc. manufacturing - - - - - - - - - - - - - - - - - - - - - - -
Trading - - - - - - - - - - - - - - - - - - - - - - -
Department store / Super market - - - - - - - - - - - - - - - - - - - - - - -
Various commercial - - - - - - - - - - - - - - - - - - - - - - -
Life insurance 1 16.7 2 33.3 - - 1 16.7 1 16.7 - - 1 16.7 - - - - - - - - 6
Non-life insurance 1 14.3 2 28.6 1 14.3 1 14.3 1 14.3 - - - - - - - - - - 1 14.3 7
Finance 20 40.0 10 20.0 8 16.0 4 8.0 1 2.0 - - 1 2.0 - - 1 2.0 3 6.0 2 4.0 50 Real estate 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Transportation / Warehouse - - - - - - - - - - - - - - - - - - - - - - -
105
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CFIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Electric / Gas - - - - - - - - - - - - - - - - - - - - - - -
Services 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - - - - - - - - - - - - - - - - - - - - - -
Total (# of Organizations) 25 14 10 6 3 - 2 - 1 3 3 67 Ratio (%) 37.3 20.9 14.9 9.0 4.5 - 3.0 - 1.5 4.5 4.5 -
106
<Table 20> Number of CIA (Certified Internal Auditor) holders (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Construction 4 80.0 1 20.0 - - - - - - - - - - - - - - - - - - 5
Fishing / Food 1 16.7 1 16.7 2 33.3 - - - - 1 16.7 - - 1 16.7 - - - - - - 6
Textile / Paper / Pulp - - - - - - 1 100.0 - - - - - - - - - - - - - - 1
Chemical 6 60.0 2 20.0 2 20.0 - - - - - - - - - - - - - - - - 10 Medicine 6 50.0 3 25.0 3 25.0 - - - - - - - - - - - - - - - - 12
Oil / Coal / Mining 1 33.3 2 66.7 - - - - - - - - - - - - - - - - 3
Rubber 1 50.0 - - 1 50.0 - - - - - - - - - - - - - - - - 2
Glass / Soil & Stone - - - - 1 100.0 - - - - - - - - - - - - - - - - 1
Steel 2 100.0 - - - - - - - - - - - - - - - - - - - - 2 Metal - - - - - - - - - - - - - - - - - - - - - - -
Machine 10 100.0 - - - - - - - - - - - - - - - - - - - - 10
Electric equipment 8 42.1 4 21.1 3 15.8 1 5.3 1 5.3 - - - - - - - - - - 2 10.5 19
Transportation equipment 4 57.4 1 14.3 1 14.3 - - 1 14.3 - - - - - - - - - - - - 7
Precision equipment 4 100.0 - - - - - - - - - - - - - - - - - - - - 4 Misc. manufacturing 4 100.0 - - - - - - - - - - - - - - - - - - - - 4
Trading 2 22.2 2 22.2 - - 1 11.1 - - 1 11.1 - - - - 1 11.1 1 11.1 1 11.1 9
Department store / Super market 1 33.3 2 66.7 - - - - - - - - - - - - - - - - - - 3
Various commercial 6 75.0 1 12.5 1 12.5 - - - - - - - - - - - - - - - - 8
Life insurance 3 27.3 4 36.4 1 9.1 - - 1 9.1 - - 1 9.1 - - - - 1 9.1 - - 11
Non-life insurance 2 25.0 2 25.0 - - 1 12.5 - - - - 1 12.5 1 12.5 - - 1 12.5 - - 8
Finance 20 62.5 3 9.4 3 9.4 - - 1 3.1 1 3.1 - - 1 3.1 - - 1 3.1 2 6.3 32 Real estate 5 71.4 2 28.6 - - - - - - - - - - - - - - - - - - 7
Transportation / Warehouse 7 63.6 4 36.4 - - - - - - - - - - - - - - - - - - 11
107
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CIA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising 5 62.5 1 12.5 2 25.0 - - - - - - - - - - - - - - - - 8
Electric / Gas 5 55.6 - - 3 33.3 - - 1 11.1 - - - - - - - - - - - - 9
Services 24 72.7 7 21.2 - - - - 2 6.1 - - - - - - - - - - 33
Independent administrative institution /
Special public institution / School
corporation / Association etc.
3 75.0 - - 1 25.0 - - - - - - - - - - - - - - - - 4
Total (# of Organizations) 134 42 24 4 5 5 2 3 1 4 5 229 Ratio (%) 58.5 18.3 10.5 1.7 2.2 2.2 0.9 1.3 0.4 1.7 2.2
108
<Table 21> Number of CIA (Certified Internal Auditor) holders (by Number of Employees)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CIA
Number of Employees # % # % # % # % # % # % # % # % # % # % # % #
� 100 7 87.5 1 12.5 - - - - - - - - - - - - - - - - - - 8
101 � 200 11 84.6 - - 1 7.7 - - - - - - - - - - - - 1 7.7 - - 13
201 � 300 5 100.0 - - - - - - - - - - - - - - - - - - - - 5
301 � 500 8 88.9 1 11.1 - - - - - - - - - - - - - - - - - - 9
501 � 1,000 17 85.0 2 10.0 - - - - - - - - - - 1 5.0 - - - - - - 20
1,001 � 2,000 22 73.3 4 13.3 2 6.7 - - - - 2 6.7 - - - - - - - - - - 30
2,001 � 3,000 17 60.7 7 25.0 2 7.1 - - - - 1 3.6 - - - - 1 3.6 - - - - 28
3,001 � 5,000 20 64.5 7 22.6 1 3.2 1 3.2 - - - - - - - - - - 2 6.5 - - 31
5,001 � 10,000 11 25.0 15 34.1 11 25.0 1 2.3 2 4.5 1 2.3 1 2.3 1 2.3 - - - - 1 2.3 44
10,001 � 30,000 10 38.5 3 11.5 4 15.4 1 3.8 3 11.5 1 3.8 1 3.8 1 3.8 - - 1 3.8 1 3.8 26
30,001 � 100,000 3 30.3 2 20.0 2 20.0 1 10.0 - - - - - - - - - - - - 2 20.0 10
100,000 � - - - - 1 50.0 - - - - - - - - - - - - - - 1 50.0 2
Total (# of Organizations) 131 42 24 4 5 5 2 3 1 4 5 226
Ratio (%) 58.4 18.5 10.3 1.7 2.1 2.1 0.9 1.3 0.4 2.1 2.1
� Not applicable: 3 organizations
109
<Table 22> Number of CCSA (Certification in Control Self-Assessment) holders (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CCSA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Construction - - - - - - - - - - - - - - - - - - - - - - -
Fishing / Food 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Textile / Paper / Pulp - - - - - - - - - - - - - - - - - - - - - - -
Chemical 1 100.0 - - - - - - - - - - - - - - - - - - - - 1 Medicine 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Oil / Coal / Mining - - - - - - - - - - - - - - - - - - - - - - -
Rubber - - - - - - - - - - - - - - - - - - - - - - -
Glass / Soil & Stone - - - - - - - - - - - - - - - - - - - - - - -
Steel - - - - - - - - - - - - - - - - - - - - - - - Metal - - - - - - - - - - - - - - - - - - - - - - -
Machine - - - - - - - - - - - - - - - - - - - - - - -
Electric equipment 2 50.0 2 50.0 - - - - - - - - - - - - - - - - - - 4
Transportation equipment - - - - - - 1 100.0 - - - - - - - - - - - - - - 1
Precision equipment - - - - - - - - - - - - - - - - - - - - - - - Misc. manufacturing 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Trading 2 100.0 - - - - - - - - - - - - - - - - - - - - 2
Department store / Super market - - - - - - - - - - - - - - - - - - - - - - -
Various commercial 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Life insurance 2 66.7 1 33.3 - - - - - - - - - - - - - - - - - - 3
Non-life insurance - - 1 100.0 - - - - - - - - - - - - - - - - - - 1
Finance 3 75.0 1 25.0 - - - - - - - - - - - - - - - - - - 4 Real estate - - - - - - - - - - - - - - - - - - - - - - -
Transportation / Warehouse - - - - - - - - - - - - - - - - - - - - - - -
110
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CCSA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising - - - - - - - - - - - - - - - - - - - - - - -
Electric / Gas 2 100.0 - - - - - - - - - - - - - - - - - - - - 2
Services 2 50.0 1 25.0 1 25.0 - - - - - - - - - - - - - - - - 4
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - - - - - - - - - - - - - - - - - - - - - -
Total (# of Organizations) 18 6 1 1 - - - - - - - 26 Ratio (%) 69.2 23.1 3.8 3.8 - - - - - - -
111
<Table 23> Number of CFSA (Certified Financial Services Auditor) holders (by industry)
Unit: Number of organizations
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CFSA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Construction - - - - - - - - - - - - - - - - - - - - - - -
Fishing / Food - - - - - - - - - - - - - - - - - - - - - - -
Textile / Paper / Pulp - - - - - - - - - - - - - - - - - - - - - - -
Chemical - - - - - - - - - - - - - - - - - - - - - - - Medicine - - - - - - - - - - - - - - - - - - - - - - -
Oil / Coal / Mining - - - - - - - - - - - - - - - - - - - - - - -
Rubber - - - - - - - - - - - - - - - - - - - - - - -
Glass / Soil & Stone - - - - - - - - - - - - - - - - - - - - - - -
Steel - - - - - - - - - - - - - - - - - - - - - - - Metal - - - - - - - - - - - - - - - - - - - - - - -
Machine - - - - - - - - - - - - - - - - - - - - - - -
Electric equipment - - - - - - - - - - - - - - - - - - - - - - -
Transportation equipment - - - - - - - - - - - - - - - - - - - - - - -
Precision equipment - - - - - - - - - - - - - - - - - - - - - - - Misc. manufacturing - - - - - - - - - - - - - - - - - - - - - - -
Trading 1 100.0 - - - - - - - - - - - - - - - - - - - - 1
Department store / Super market - - - - - - - - - - - - - - - - - - - - - - -
Various commercial - - - - - - - - - - - - - - - - - - - - - - -
Life insurance 1 20.0 3 60.0 1 20.0 - - - - - - - - - - - - - - - - 5
Non-life insurance - - 2 50.0 - - 1 25.0 - - - - - - - - - - - - 1 25.0 4
Finance 15 60.0 5 20.0 2 8.0 - - - - - - - - - - 1 4.0 2 8.0 - - 25 Real estate - - - - - - - - - - - - - - - - - - - - - - -
Transportation / Warehouse - - - - - - - - - - - - - - - - - - - - - - -
112
1 2 3 4 5 6 7 8 9 10 � 19 20 � Total Number of CFSA
Industry # % # % # % # % # % # % # % # % # % # % # % #
Telecom / Advertising - - - - - - - - - - - - - - - - - - - - - - -
Electric / Gas - - - - - - - - - - - - - - - - - - - - - - -
Services 2 100.0 - - - - - - - - - - - - - - - - - - - - 2
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - - - - - - - - - - - - - - - - - - - - - -
Total (# of Organizations) 19 10 3 1 - - - - 1 2 1 37 Ratio (%) 51.4 27.0 8.1 2.7 - - - - 2.7 5.4 2.7
113
<Table 24> Prior experiences of internal auditors (by industry)
Unit: Number of organizations
Prior experiences
Industry
Accounting / F
inan
ce
Ma
terials /
Pu
rchasing
Productio
n
Sa
les / M
arke
ting
Ge
neral A
ffairs /
Hum
an R
esources
Adm
inistra
tion
Informatio
n Syste
m
Techno
logy /
Develop
men
t
Intern
al Aud
it since
new
gra
duate
Intern
al Aud
it since
mid
-career
employm
ent
Tran
sferred fro
m
parent / a
ffiliate
compa
ny
Others
Total
Construction 36 9 21 18 19 38 6 3 2 2 5 3 162
Fishing / Food 26 9 14 29 18 24 14 6 4 2 5 5 156
Textile / Paper / Pulp 9 1 3 14 8 11 8 1 2 2 - 1 60
Chemical 39 9 13 35 23 32 14 17 1 9 9 16 217
Medicine 17 - 12 21 13 15 9 14 - - 4 3 108
Oil / Coal / Mining 7 - 5 6 7 4 - 3 1 1 - 2 36
Rubber 3 1 1 3 1 2 2 1 - - - - 14
Glass / Soil & Stone 6 2 6 8 4 8 2 3 - 2 2 1 44
Steel 10 1 2 4 8 9 2 1 - 1 2 2 42
Metal 12 4 4 10 6 8 4 3 - 5 1 3 60
Machine 28 9 18 26 21 27 11 17 5 7 2 2 173
Electric equipment 45 19 20 39 30 44 31 15 1 13 5 13 275
Transportation equipment 20 9 13 13 16 21 11 13 3 6 4 2 131
Precision equipment 15 2 3 8 11 9 4 4 1 1 4 5 67
Misc. manufacturing 23 5 16 22 15 23 6 6 - 4 2 7 129
Trading 30 5 1 39 22 28 14 2 2 7 3 4 157
Department store / Super market 16 2 - 27 15 11 4 3 1 6 2 2 89
Various commercial 34 6 3 48 20 30 15 6 2 12 3 4 183
Life insurance 5 - - 12 4 14 8 1 - 11 4 - 59
114
Prior experiences
Industry
Accou
nting / F
inance
Materia
ls /
Purch
asing
Prod
uction
Sale
s / Ma
rketing
Ge
neral A
ffairs /
Hum
an Re
sources
Ad
ministration
Informa
tion S
ystem
Tech
nolog
y /
De
velopm
ent
Internal A
udit since
new
grad
uate
Internal A
udit since
mid-care
er
em
ployme
nt
Tra
nsferred from
parent / affiliate
com
pany
Others
Total
Non-life insurance 9 - 2 10 6 12 8 1 2 6 3 1 60
Finance 33 4 1 119 38 96 58 5 7 27 31 10 429
Real estate 9 2 4 24 17 18 2 1 1 15 6 1 100
Transportation / Warehouse 33 6 8 38 38 32 15 3 2 4 12 5 196
Telecom / Advertising 21 3 1 22 11 15 11 7 - 9 6 1 107
Electric / Gas 6 4 6 12 11 9 8 2 1 1 1 1 62
Services 55 15 21 71 48 57 47 9 8 41 17 8 397
Independent administrative institution /
Special public institution / School
corporation / Association etc.
14 5 3 8 22 17 5 6 1 3 2 5 91
Total (# of Organizations) 561 132 201 686 452 614 319 153 47 197 135 107 3,604
Ratio (%) 39.2 9.2 14.0 47.9 31.6 42.9 22.3 10.7 3.3 13.8 9.4 7.5
� No responses: 42 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (1,431
organizations) * 100
� Others include “legal (compliance)”, “quality assurance”, “kansayaku”, “logistics”, “ISO / environment”, “public relations”, etc.
(Note) This survey examined the tendency to select internal auditors from other departments. Therefore, the survey did not examine the number of internal auditors from
each department.
115
116
<Table 25> Special considerations when internal auditors are transferred to other departments (by industry)
Unit: Number of organizations
Take internal audit
experience into
considerations
Not take internal audit
experience into
considerations
Total Considerations
Industry
# % # % #
Construction 35 53.8 30 46.2 65
Fishing / Food 27 55.1 22 44.9 49
Textile / Paper / Pulp 12 63.2 7 36.8 19
Chemical 50 58.1 36 41.9 86
Medicine 16 51.6 15 48.4 31
Oil / Coal / Mining 5 55.6 4 44.4 9
Rubber 5 100.0 - - 5
Glass / Soil & Stone 7 58.3 5 41.7 12
Steel 10 62.5 6 37.5 16
Metal 9 33.3 18 66.7 27
Machine 33 54.1 28 45.9 61
Electric equipment 62 67.4 30 32.6 92
Transportation equipment 22 55.0 18 45.0 40
Precision equipment 16 66.7 8 33.3 24
Misc. manufacturing 32 59.3 22 40.7 54
Trading 30 44.8 37 55.2 67
Department store / Super market 19 55.9 15 44.1 34
Various commercial 44 57.1 33 42.9 77
Life insurance 11 68.8 5 31.3 16
Non-life insurance 7 53.8 6 46.2 13
Finance 81 50.6 79 49.4 160
Real estate 25 61.0 16 39.0 41
Transportation / Warehouse 31 49.2 32 50.8 63
Telecom / Advertising 21 61.8 13 38.2 34
Electric / Gas 10 58.8 7 41.2 17
Services 103 57.5 76 42.5 179
Independent administrative institution /
Special public institution / School
corporation / Association etc.
11 27.5 29 72.5 40
Total (# of Organizations) 734 597 1,331
Ratio (%) 55.1 44.9
� No responses: 142 organizations
117
<Table 26> Establishment of the internal audit charter and the procedure manual (by industry)
Unit: Number of organizations
Charter only Procedure
Manual only
Both Charter
and Procedure
Manual
Neither Total Structure
Industry # % # % # % # % #
Construction 38 55.1 1 1.4 28 40.6 2 2.9 69
Fishing / Food 17 32.7 3 5.8 32 61.5 - - 52
Textile / Paper / Pulp 11 45.8 2 8.3 11 45.8 - - 24
Chemical 42 45.7 1 1.1 44 47.8 5 5.4 92
Medicine 8 24.2 1 3.0 24 72.7 - - 33
Oil / Coal / Mining 3 30.0 1 10.0 6 60.0 - - 10
Rubber 3 60.0 - - 2 40.0 - - 5
Glass / Soil & Stone 4 28.6 - - 10 71.4 - - 14
Steel 8 47.1 - - 9 52.9 - - 17
Metal 16 50.0 - - 15 46.9 1 3.1 32
Machine 27 39.1 1 1.4 40 58.0 1 1.4 69
Electric equipment 45 43.3 2 1.9 57 54.8 - - 104
Transportation equipment 20 45.5 2 4.5 21 47.7 1 2.3 44
Precision equipment 14 51.9 - - 13 48.1 - - 27
Misc. manufacturing 28 45.9 - - 32 52.5 1 1.6 61
Trading 37 49.3 3 4.0 35 46.7 - - 75
Department store / Super market 23 57.5 2 5.0 15 37.5 - - 40
Various commercial 42 50.0 1 1.2 38 45.2 3 3.6 84
Life insurance - - - - 17 100.0 - - 17
Non-life insurance - - - - 13 100.0 - - 13
Finance 18 10.8 3 1.8 146 87.4 - - 167
Real estate 30 60.0 1 2.0 18 36.0 1 2.0 50
Transportation / Warehouse 31 43.7 4 5.6 36 50.7 - - 71
Telecom / Advertising 17 42.5 - - 23 57.5 - - 40
Electric / Gas 4 22.2 - - 14 77.8 - - 18
Services 79 41.1 10 5.2 99 51.6 4 2.1 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
17 39.5 1 2.3 25 58.1 - - 43
Total (# of Organizations) 582 39 823 19 1,463
Ratio (%) 39.8 2.7 56.3 1.3
Total (# of Organizations) 1,444 19 1,463
Ratio (%) 98.7 1.3
� No responses: 10 organizations
118
<Table 27> Approval of the internal audit charter (by industry)
Unit: Number of organizations
Approval
Industry
President
Board
Executive
Com
mittee
Executive in
charge of Audit
Kansayaku or
Audit C
omm
ittee
Others
Total
Construction 36 20 5 2 - - 63
Fishing / Food 14 25 9 1 - - 49
Textile / Paper / Pulp 7 10 3 2 - - 22
Chemical 43 26 11 1 - 4 85
Medicine 14 12 2 3 - 1 32
Oil / Coal / Mining 4 2 2 1 - - 9
Rubber 2 1 - 2 - - 5
Glass / Soil & Stone 9 2 3 - - - 14
Steel 10 4 1 1 - 1 17
Metal 8 16 4 2 - - 30
Machine 29 26 7 2 - 2 66
Electric equipment 52 27 11 6 - 3 99
Transportation equipment 21 5 8 6 - - 40
Precision equipment 14 9 1 1 1 - 27
Misc. manufacturing 21 30 4 3 - 1 59
Trading 23 38 8 1 - 1 70
Department store / Super market 15 17 4 - - - 37
Various commercial 33 37 7 1 1 1 79
Life insurance - 15 - 1 1 - 17
Non-life insurance - 10 3 - - - 13
Finance 18 132 8 1 1 1 161
Real estate 20 24 2 1 - - 47
Transportation / Warehouse 31 24 10 2 - - 67
Telecom / Advertising 22 13 3 - 1 39
Electric / Gas 16 1 - 1 18
Services 70 79 20 4 - - 173
Independent administrative institution /
Special public institution / School
corporation / Association etc.
18 17 5 1 - - 41
Total (# of Organizations) 550 622 141 45 4 17 1,379
Ratio (%) 39.9 45.1 10.2 3.3 0.3 1.2
� No responses: 26 organizations
� Others include “executive in charge of internal rules”, “CAE”, “executive officer committee”, ”executive
committee”, ”management committee”, “parent company in overseas”, etc.
119
<Table 28> Approval of the internal audit procedure manual (by industry)
Unit: Number of organizations
Approval
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Internal Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
Chief A
udit Executive
Others
Total
Construction 8 1 2 5 - - 10 1 27
Fishing / Food 4 3 2 3 - - 23 - 35
Textile / Paper / Pulp 4 1 1 1 - - 5 - 12
Chemical 11 3 - 2 - 1 26 1 43
Medicine 2 1 - 3 - - 16 2 25
Oil / Coal / Mining 1 - 1 - - - 5 - 7
Rubber - - - 2 - - - - 2
Glass / Soil & Stone 5 - - 1 - - 4 - 10
Steel 1 - 1 2 - - 5 - 9
Metal 2 3 1 3 - - 6 - 15
Machine 13 2 1 8 - - 16 1 41
Electric equipment 8 3 2 3 - 1 40 - 57
Transportation equipment 1 - - 2 - - 19 - 22
Precision equipment 1 1 - 1 - - 10 - 13
Misc. manufacturing 9 5 - 2 - - 14 1 31
Trading 8 9 - 1 1 - 17 1 37
Department store / Super market 4 1 2 2 - - 7 1 17
Various commercial 15 10 2 1 - - 10 1 39
Life insurance 2 3 3 5 1 - 3 - 17
Non-life insurance 2 2 2 3 - - 3 1 13
Finance 19 39 34 15 1 - 38 1 147
Real estate 10 2 - 1 - - 6 - 19
Transportation / Warehouse 10 2 - 7 1 - 18 1 39
Telecom / Advertising 2 1 - 2 - - 17 - 22
Electric / Gas - - - 2 - - 11 1 14
Services 37 7 8 6 - - 44 4 106
Independent administrative institution /
Special public institution / School
corporation / Association etc.
8 2 4 3 - - 8 - 25
Total (# of Organizations) 187 101 66 86 4 2 381 17 844
Ratio (%) 22.2 12.0 7.8 10.2 0.5 0.2 45.1 2.0
� No responses: 18 organizations
� Others include “senior executive”, “administration executive”, “audit activity management meeting”,
“standard staff meeting”, “operational audit committee”, “CAE of parent company”, etc.
120
<Table 29> Adherence to the Standards when the internal audit charter and the procedure manual were
established (by industry)
Unit: Number of organizations
Guidance of the
Standards for
Japan
The Standards Both the
Standards and
Guidance of the
Standards for
Japan
Neither Total Adhered
Industry
# % # % # % # % #
Construction 35 58.3 1 1.7 2 3.3 22 36.7 60
Fishing / Food 26 55.3 2 4.3 4 8.5 15 31.9 47
Textile / Paper / Pulp 12 60.0 - - 4 20.0 4 20.0 20
Chemical 55 68.8 2 2.5 8 10.0 15 18.8 80
Medicine 19 61.3 - - 9 29.0 3 9.7 31
Oil / Coal / Mining 6 66.7 - - 2 22.2 1 11.1 9
Rubber 3 60.0 - - 2 40.0 - - 5
Glass / Soil & Stone 11 78.6 1 7.1 1 7.1 1 7.1 14
Steel 5 35.7 - - 3 21.4 6 42.9 14
Metal 7 26.9 - - 3 11.5 16 61.5 26
Machine 35 53.8 1 1.5 7 10.8 22 33.8 65
Electric equipment 61 62.2 2 2.0 20 20.4 15 15.3 98
Transportation equipment 19 50.0 1 2.6 4 10.5 14 36.8 38
Precision equipment 14 56.0 1 4.0 6 24.0 4 16.0 25
Misc. manufacturing 37 66.1 1 1.8 2 3.6 16 28.6 56
Trading 36 55.4 - - 10 15.4 19 29.2 65
Department store / Super market 22 61.1 1 2.8 3 8.3 10 27.8 36
Various commercial 50 68.5 2 2.7 8 11.0 13 17.8 73
Life insurance 2 11.8 1 5.9 10 58.8 4 23.5 17
Non-life insurance 4 33.3 - - 6 50.0 2 16.7 12
Finance 46 28.4 8 4.9 30 18.5 78 48.1 162
Real estate 25 56.8 1 2.3 7 15.9 11 25.0 44
Transportation / Warehouse 35 51.5 - - 11 16.2 22 32.4 68
Telecom / Advertising 16 41.0 - - 13 33.3 10 25.6 39
Electric / Gas 9 50.0 - - 3 16.7 6 33.3 18
Services 94 56.0 5 3.0 22 13.1 47 28.0 168
Independent administrative institution /
Special public institution / School
corporation / Association etc.
16 38.1 1 2.4 2 4.8 23 54.8 42
Total (# of Organizations) 700 31 202 399 1,332
Ratio (%) 52.6 2.3 15.2 30.0
Total (# of Organizations) 933 399 1,332
Ratio (%) 70.0 30.0
� No responses: 112 organizations
3. Internal Audit Plan (Tables 30 to 42)
121
<Table 30> Business risk / control risk assessment by the IAA (by industry)
Unit: Number of organizations
Conducting Not conducting Total Risk assessment
Industry # % # % #
Construction 43 62.3 26 37.7 69
Fishing / Food 32 62.7 19 37.3 51
Textile / Paper / Pulp 15 62.5 9 37.5 24
Chemical 57 62.0 35 38.0 92
Medicine 21 63.6 12 36.4 33
Oil / Coal / Mining 7 70.0 3 30.0 10
Rubber 3 60.0 2 40.0 5
Glass / Soil & Stone 5 35.7 9 64.3 14
Steel 10 62.5 6 37.5 16
Metal 17 53.1 15 46.9 32
Machine 36 53.7 31 46.3 67
Electric equipment 64 62.1 39 37.9 103
Transportation equipment 27 61.4 17 38.6 44
Precision equipment 17 63.0 10 37.0 27
Misc. manufacturing 39 62.9 23 37.1 62
Trading 44 58.7 31 41.3 75
Department store / Super market 27 69.2 12 30.8 39
Various commercial 46 56.1 36 43.9 82
Life insurance 17 100.0 - - 17
Non-life insurance 11 84.6 2 15.4 13
Finance 114 67.9 54 32.1 168
Real estate 25 52.1 23 47.9 48
Transportation / Warehouse 39 55.7 31 44.3 70
Telecom / Advertising 31 79.5 8 20.5 39
Electric / Gas 7 38.9 11 61.1 18
Services 118 61.8 73 38.2 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
17 39.5 26 60.5 43
Total (# of Organizations) 889 563 1,452
Ratio (%) 61.2 38.8
� No responses: 21 organizations
122
<Table 31> Timing of risk assessment (by industry)
Unit: Number of organizations
Annual Audit
Planning
Each
engagement
planning
After each
engagement
completed
Others Total Timing
Industry # % # % # % # % #
Construction 28 48.3 20 34.5 10 17.2 - - 58
Fishing / Food 19 38.8 22 44.9 7 14.3 1 2.0 49
Textile / Paper / Pulp 10 50.0 5 25.0 4 20.0 1 5.0 20
Chemical 30 39.5 32 42.1 13 17.1 1 1.3 76
Medicine 14 56.0 8 32.0 2 8.0 1 4.0 25
Oil / Coal / Mining 5 41.7 5 41.7 1 8.3 1 8.3 12
Rubber 2 50.0 1 25.0 1 25.0 - - 4
Glass / Soil & Stone 5 55.6 3 33.3 1 11.1 - - 9
Steel 6 42.9 4 28.6 4 28.6 - - 14
Metal 10 43.5 7 30.4 5 21.7 1 4.3 23
Machine 22 50.0 18 40.9 4 9.1 - - 44
Electric equipment 39 47.0 35 42.2 8 9.6 1 1.2 83
Transportation equipment 20 58.8 11 32.4 2 5.9 1 2.9 34
Precision equipment 10 47.6 9 42.9 2 9.5 - - 21
Misc. manufacturing 19 38.0 19 38.0 10 20.0 2 4.0 50
Trading 21 40.4 14 26.9 17 32.7 - - 52
Department store / Super market 21 55.3 11 28.9 6 15.8 - - 38
Various commercial 25 39.7 23 36.5 14 22.2 1 1.6 63
Life insurance 13 41.9 14 45.2 4 12.9 - - 31
Non-life insurance 8 47.0 5 29.4 3 17.6 1 5.9 17
Finance 72 44.7 49 30.4 37 23.0 3 1.9 161
Real estate 10 30.3 15 45.5 8 24.2 - - 33
Transportation / Warehouse 26 50.0 15 28.8 11 21.2 - - 52
Telecom / Advertising 20 42.6 18 38.3 9 19.1 - - 47
Electric / Gas 6 50.0 4 33.3 2 16.7 - - 12
Services 77 51.3 50 33.3 23 15.3 - - 150
Independent administrative institution /
Special public institution / School
corporation / Association etc.
12 50.0 7 29.2 5 20.8 - - 24
Total (# of Organizations) 550 424 213 15 1,202
Ratio (%) 62.7 48.3 24.3 1.7
� No responses: 12 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (877 organizations) * 100
� Others include “after completion of audits of all audit universe”, “based on a request from management”, “at
the beginning of the year”, etc.
123
124
<Table 32> Sources to determine audit universe (by industry)
Unit: Number of organizations
Sources
Industry
Fro
m key m
anagemen
t objectives
Consu
lt with to
p man
agem
ent
Review
prio
r wo
rking papers / au
dit reports
Consu
lt with
othe
r depa
rtmen
ts
Based
on resu
lts of risk assessm
ent
Based
on o
n-site
review
Review
meeting
min
utes / App
roval requ
ests
Attend
interna
l meetings
Review
business process flow
chart
Exam
ine m
anag
ement in
form
ation data
Ru
mo
r / letters / wh
istle-blowing
Select large expen
diture d
epartm
ents
Bench
mark co
mp
arison to co
mp
etitors
Fro
m resu
lts of self-ch
eck / CS
A
Consu
lt with K
ansayaku / Au
dit Co
mm
ittee
Based
on “Insp
ection M
anual o
f Fin
ancial S
ervices Agency”
Ba
sed on
“Practice
Sta
ndard
s for Ma
nagem
ent A
ssessm
ent a
nd Audit
concerning In
tern
al Contro
l Ove
r Fina
ncial R
eportin
g”
Oth
ers
Total
Construction 56 36 43 15 32 12 9 10 8 8 10 4 2 3 23 - 16 - 287 Fishing / Food 42 31 35 15 25 14 9 3 2 2 6 4 1 12 17 - 8 2 228
Textile / Paper / Pulp 17 8 13 5 11 1 4 2 2 1 3 2 - 4 10 - 3 1 87
Chemical 70 35 56 10 43 11 14 16 13 10 12 11 2 12 30 1 27 1 374
Medicine 23 12 18 7 18 3 5 4 - - 2 5 3 4 11 - 6 3 124
Oil / Coal / Mining 8 8 4 3 6 1 1 1 - - 1 - - 2 4 - 1 - 40 Rubber 3 2 4 1 3 - - 2 2 - - - - 1 1 - - 19
Glass / Soil & Stone 12 4 10 1 5 1 3 3 - 1 2 - - 2 5 - 5 - 54
Steel 13 11 10 5 9 - 3 2 2 1 2 1 - 1 6 - 4 - 70
Metal 19 7 21 5 8 8 7 5 3 5 5 5 1 1 13 - 6 1 120
Machine 54 30 40 16 24 12 16 13 13 10 9 3 1 5 25 - 25 2 298
Electric equipment 78 45 69 21 46 14 19 25 17 16 24 4 1 19 41 1 34 6 480
125
Sources
Industry
Fro
m key m
anagemen
t objectives
Consu
lt with to
p man
agem
ent
Review
prio
r wo
rking papers / au
dit reports
Consu
lt with oth
er dep
artmen
ts
Based
on resu
lts of risk assessm
ent
Based
on o
n-site review
Review
meeting
min
utes / App
roval requ
ests
Attend
internal m
eetings
Review
business process flow
chart
Exam
ine m
anag
ement in
form
ation data
Ru
mo
r / letters / wh
istle-blowing
Se
lect large expen
diture d
epartm
ents
Ben
chm
ark com
parison
to com
petito
rs
Fro
m resu
lts of self-ch
eck / CS
A
Consu
lt with K
ansayaku / Au
dit Co
mm
ittee
Based
on “Insp
ection M
anual o
f Fin
ancial S
ervices Agency”
Ba
sed on
“Pra
ctice Sta
ndard
s for M
ana
gement A
ssessm
ent a
nd Audit
concerning Inte
rnal Con
trol O
ver Fina
ncial R
eportin
g”
Oth
ers
Total
Transportation equipment 33 22 24 7 22 3 7 5 5 5 5 - 1 5 12 1 16 4 177
Precision equipment 20 14 19 8 13 6 2 5 2 1 3 4 - 3 10 - 6 - 116
Misc. manufacturing 48 29 34 24 29 20 21 18 10 8 9 6 - 2 26 1 6 1 292
Trading 48 34 51 17 34 13 8 12 10 12 10 6 1 9 18 1 10 3 297
Department store / Super market 31 25 22 8 26 9 3 13 2 5 7 2 2 5 16 - 3 - 179 Various commercial 64 38 54 22 37 28 17 19 13 14 15 4 1 12 28 1 10 - 377
Life insurance 15 8 13 7 14 2 9 9 2 5 5 3 3 6 4 16 7 2 130 Non-life insurance 11 6 9 7 9 4 4 5 3 2 4 3 1 4 5 10 7 1 95
Finance 122 45 111 36 102 31 27 27 11 7 21 4 - 43 31 123 51 4 796
Real estate 33 26 25 9 22 6 19 13 13 2 4 2 1 3 16 6 8 1 209
Transportation / Warehouse 54 33 45 17 29 20 16 4 5 5 11 4 - 12 18 1 13 3 290 Telecom / Advertising 31 18 27 10 27 4 9 4 4 4 9 2 3 4 13 - 12 1 182 Electric / Gas 16 11 12 9 10 7 3 4 3 1 2 1 - 5 6 - 3 - 93
Services 151 87 112 39 86 40 36 39 30 22 20 14 4 24 61 4 33 7 809
126
Sources
Industry
Fro
m key m
anagemen
t objectives
Consu
lt with to
p man
agem
ent
Review
prio
r wo
rking papers / au
dit reports
Consu
lt with oth
er dep
artmen
ts
Based
on resu
lts of risk assessm
ent
Based
on o
n-site review
Review
meeting
min
utes / App
roval requ
ests
Attend
internal m
eetings
Review
business process flow
chart
Exam
ine m
anag
ement in
form
ation data
Ru
mo
r / letters / wh
istle-blowing
Se
lect large expen
diture d
epartm
ents
Ben
chm
ark com
parison
to com
petito
rs
Fro
m resu
lts of self-ch
eck / CS
A
Consu
lt with K
ansayaku / Au
dit Co
mm
ittee
Based
on “Insp
ection M
anual o
f Fin
ancial S
ervices Agency”
Ba
sed on
“Pra
ctice Sta
ndard
s for M
ana
gement A
ssessm
ent a
nd Audit
concerning Inte
rnal Con
trol O
ver Fina
ncial R
eportin
g”
Oth
ers
Total
Independent administrative
institution / Special public
institution / School corporation /
Association etc.
29 25 23 8 17 7 8 4 6 1 6 5 1 5 14 2 3 4 168
Total (# of Organizations) 1,101 650 904 332 707 277 279 267 181 148 207 99 29 208 464 168 323 47 6,391
Ratio (%) 75.5 44.6 62.0 22.8 48.5 19.0 19.1 18.3 12.4 10.2 14.2 6.8 2.0 14.3 31.8 11.5 22.2 3.2
� No responses: 15 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (1,458
organizations) * 100
� Others include “revision of laws/regulations”, “review of internal rules”, “from prior irregularities”, “from group management policies”, etc.
127
128
<Table 33> Method to determine audit universe (by industry)
Unit: Number of organizations
Method
Industry
Instructed by top
managem
ent
Selected by C
AE
and
supported by top
managem
ent
Determ
ined by
Internal Audit
Activity
Requested by other
departments
Discussed w
ith
Kansayaku / A
udit
Com
mittee
Others
Total
Construction 11 48 25 7 10 - 101
Fishing / Food 7 42 15 7 8 - 79
Textile / Paper / Pulp 4 18 7 1 6 - 36
Chemical 20 70 29 4 16 1 140
Medicine 10 24 8 1 5 - 48
Oil / Coal / Mining 6 9 - - - - 15
Rubber - 2 2 - 1 - 5
Glass / Soil & Stone 4 10 5 - 2 - 21
Steel 7 16 2 2 3 - 30
Metal 8 20 13 1 9 - 51
Machine 12 44 24 1 16 2 99
Electric equipment 28 72 43 6 31 3 183
Transportation equipment 9 33 12 1 11 1 67
Precision equipment 4 20 10 2 7 - 43
Misc. manufacturing 10 48 14 2 16 1 91
Trading 18 56 27 10 11 - 122
Department store / Super market 13 28 16 2 6 - 65
Various commercial 25 57 35 12 21 - 150
Life insurance 5 11 6 3 4 - 29
Non-life insurance 4 9 6 2 2 - 23
Finance 41 131 62 20 17 1 272
Real estate 12 37 12 1 12 - 74
Transportation / Warehouse 20 53 16 6 11 2 108
Telecom / Advertising 8 31 18 5 8 - 70
Electric / Gas 2 14 5 1 - - 22
Services 40 147 65 8 34 2 296
Independent administrative institution /
Special public institution / School
corporation / Association etc.
9 37 10 3 9 - 68
Total (# of Organizations) 337 1,087 487 108 276 13 2,308
Ratio (%) 23.1 74.4 33.3 7.4 18.9 0.9
� No responses: 12 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,462 organizations) * 100
� Others include “discussed with external auditors”, “to comply with laws such as J-SOX and SOX”,
“requested by parent company”, “discussed with executives”, etc.
<Table 34> Development of internal audit checklist (by industry)
129
Unit: Number of organizations
Timing of development
Industry
Developed
standardized
checklist
Developing for
each
engagement
Not develop a
checklist Total
Construction 39 36 4 79
Fishing / Food 26 28 6 60
Textile / Paper / Pulp 9 9 6 24
Chemical 40 57 8 105
Medicine 13 19 4 36
Oil / Coal / Mining 5 7 - 12
Rubber 2 4 - 6
Glass / Soil & Stone 4 9 2 15
Steel 5 9 3 17
Metal 11 15 9 35
Machine 29 38 8 75
Electric equipment 62 64 9 135
Transportation equipment 19 28 5 52
Precision equipment 12 17 2 31
Misc. manufacturing 28 36 7 71
Trading 43 25 14 82
Department store / Super market 24 20 3 47
Various commercial 51 35 9 95
Life insurance 12 12 1 25
Non-life insurance 10 9 - 19
Finance 123 74 12 209
Real estate 18 25 13 56
Transportation / Warehouse 35 35 8 78
Telecom / Advertising 17 21 7 45
Electric / Gas 8 11 - 19
Services 93 98 20 211
Independent administrative institution /
Special public institution / School
corporation / Association etc.
14 23 10 47
Total (# of Organizations) 752 764 170 1,686
Ratio (%) 51.7 52.5 11.7
� No responses: 19 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,454 organizations) * 100
130
<Table 35> Format of standardized internal audit checklist (by industry)
Unit: Number of organizations
Format
Industry
List engagement objectives
List engagement objectives and
engagement w
ork program
List engagement objectives,
engagement w
ork program and
findings
Point rating system
based on an
importance of engagem
ent
objectives
List engagement objectives,
engagement w
ork program and
findings, and add point rating
system
Others
Total
Construction 17 7 11 - 4 - 39
Fishing / Food 10 4 6 1 5 - 26
Textile / Paper / Pulp 6 - 1 1 1 - 9
Chemical 18 5 12 1 4 - 40
Medicine 7 2 3 1 - - 13
Oil / Coal / Mining 3 - 1 1 - - 5
Rubber - 1 - - 1 - 2
Glass / Soil & Stone 2 - 2 - - - 4
Steel 4 - 1 - - - 5
Metal 2 3 5 1 - - 11
Machine 13 4 10 - 1 1 29
Electric equipment 22 11 21 2 4 1 61
Transportation equipment 5 2 9 1 2 - 19
Precision equipment 6 2 3 - 1 - 12
Misc. manufacturing 16 3 9 - - - 28
Trading 13 8 18 - 2 - 41
Department store / Super market 8 3 3 3 7 - 24
Various commercial 13 7 13 4 13 - 50
Life insurance - 3 4 - 4 - 11
Non-life insurance 1 - 5 - 4 - 10
Finance 26 8 29 23 32 1 119
Real estate 9 2 4 1 2 - 18
Transportation / Warehouse 12 2 16 2 3 - 35
Telecom / Advertising 4 1 12 - - - 17
Electric / Gas 3 - 4 - 1 - 8
Services 32 9 41 3 6 2 93
Independent administrative institution /
Special public institution / School
corporation / Association etc.
6 1 7 - - - 14
Total (# of Organizations) 258 88 250 45 97 5 743
Ratio (%) 34.7 11.8 33.6 6.1 13.1 0.7
� No responses: 9 organizations
� Others include “refer INTERNAL AUDIT PRACTICE BOOK”, “add item / judgment / status of
implementation / comments”, etc.
131
<Table 36> Development of internal audit plan (by industry)
Unit: Number of organizations
Long-term plan
(exceeding 1
year)
Annual plan Engagement plan Not develop
audit plan
Total Classification
Industry # % # % # % # % #
Construction 6 5.3 61 53.5 45 39.5 2 1.8 114
Fishing / Food 12 12.4 52 53.6 33 34.0 - - 97
Textile / Paper / Pulp 3 8.3 19 52.8 13 36.1 1 2.8 36
Chemical 15 9.5 85 53.8 57 36.1 1 0.6 158
Medicine 8 13.1 30 49.2 23 37.7 - - 61
Oil / Coal / Mining 2 11.1 10 55.6 6 33.3 - - 18
Rubber - - 5 83.3 1 16.7 - - 6
Glass / Soil & Stone 2 10.0 12 60.0 6 30.0 - - 20
Steel 2 6.7 16 53.3 11 36.7 1 3.3 30
Metal 4 8.0 28 56.0 17 34.0 1 2.0 50
Machine 13 11.2 65 56.0 38 32.8 - - 116
Electric equipment 30 15.2 101 51.3 66 33.5 - - 197
Transportation equipment 8 9.9 39 48.1 33 40.7 1 1.2 81
Precision equipment 5 11.1 26 57.8 14 31.1 - - 45
Misc. manufacturing 7 6.9 58 56.9 37 36.3 - - 102
Trading 7 6.5 68 63.6 32 29.9 - - 107
Department store / Super market 3 4.7 38 59.4 23 35.9 - - 64
Various commercial 13 9.4 75 54.3 47 34.1 3 2.2 138
Life insurance 5 13.9 16 44.4 15 41.7 - - 36
Non-life insurance 1 4.5 13 59.1 8 36.4 - - 22
Finance 25 8.2 152 50.0 125 41.1 2 0.7 304
Real estate 9 10.6 46 54.1 30 35.3 - - 85
Transportation / Warehouse 11 9.3 64 54.2 41 34.7 2 1.7 118
Telecom / Advertising 5 7.0 40 56.3 26 36.6 - - 71
Electric / Gas 4 12.1 18 54.5 11 33.3 - - 33
Services 25 7.5 176 52.5 131 39.1 3 0.9 335
Independent administrative institution /
Special public institution / School
corporation / Association etc.
6 9.0 38 56.7 22 32.8 1 1.5 67
Total (# of Organizations) 231 1,351 911 18 2,511
Ratio (%) 15.9 93.2 62.8 1.2
� No responses: 23 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,450 organizations) * 100
132
<Table 37> Length of long-term (exceeding 1 year) internal audit plan (by industry)
Unit: Number of organizations
Length
Industry 2 years 3 years 4�5 years Others Total
Construction - 4 2 - 6
Fishing / Food 2 8 2 - 12
Textile / Paper / Pulp 1 1 1 - 3
Chemical - 12 3 - 15
Medicine - 3 4 - 7
Oil / Coal / Mining - 1 1 - 2
Rubber - - - - -
Glass / Soil & Stone - 2 - - 2
Steel - 2 - - 2
Metal 2 1 1 - 4
Machine - 8 5 - 13
Electric equipment 3 18 8 - 29
Transportation equipment - 4 4 - 8
Precision equipment - 3 2 - 5
Misc. manufacturing - 6 1 - 7
Trading - 3 4 - 7
Department store / Super market - 2 1 - 3
Various commercial 1 7 5 - 13
Life insurance - 5 - - 5
Non-life insurance - - - 1 1
Finance 1 22 2 - 25
Real estate 1 6 1 1 9
Transportation / Warehouse 1 6 3 1 11
Telecom / Advertising - 3 2 - 5
Electric / Gas - 3 1 - 4
Services 4 17 4 - 25
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 3 3 - 6
Total (# of Organizations) 16 150 60 3 229
Ratio (%) 7.0 65.5 26.2 1.3
� No responses: 2 organizations
� Others include “no specific length determined”, “following to organization’s strategic plan length”, etc.
133
<Table 38> Approval of long-term internal audit plan (by industry)
Unit: Number of organizations
Approved by
Industry
President
Board
Executive
Com
mittee
Executive in charge
of Audit
Kansayaku or
Audit C
omm
ittee
Others
Total
Construction 5 - - 1 - - 6
Fishing / Food 6 1 3 - - 1 11
Textile / Paper / Pulp 2 - 1 - - - 3
Chemical 6 4 1 2 - 2 15
Medicine 4 2 - 2 - - 8
Oil / Coal / Mining - - 1 - - - 1
Rubber - - - - - - -
Glass / Soil & Stone 1 - 1 - - - 2
Steel 1 - - 1 - - 2
Metal 4 - - - - - 4
Machine 7 1 - 5 - - 13
Electric equipment 15 4 1 7 1 2 30
Transportation equipment 4 - 1 3 - - 8
Precision equipment 3 - - 2 - - 5
Misc. manufacturing 4 1 - 1 1 - 7
Trading 5 - 1 - - - 6
Department store / Super market 2 - - - - 1 3
Various commercial 11 1 1 - - - 13
Life insurance - 3 - 1 - 1 5
Non-life insurance - 1 - - - - 1
Finance 3 18 - 1 - 2 24
Real estate 4 3 1 1 - - 9
Transportation / Warehouse 8 1 2 - - - 11
Telecom / Advertising 5 - - - - - 5
Electric / Gas 2 - 1 - - 1 4
Services 19 2 2 - - 2 25
Independent administrative institution /
Special public institution / School
corporation / Association etc.
5 1 - - - - 6
Total (# of Organizations) 126 43 17 27 2 12 227
Ratio (%) 55.5 18.9 7.5 11.9 0.9 5.3
� No responses: 4 organizations
� Others include “CAE”, “CAE of overseas head office”, “no approval”, etc.
134
<Table 39> Length of annual internal audit plan (by industry)
Unit: Number of organizations
Length
Industry 1 year Others Total
Construction 59 2 61
Fishing / Food 51 - 51
Textile / Paper / Pulp 18 1 19
Chemical 82 3 85
Medicine 29 1 30
Oil / Coal / Mining 9 - 9
Rubber 5 - 5
Glass / Soil & Stone 12 - 12
Steel 15 1 16
Metal 27 - 27
Machine 63 1 64
Electric equipment 100 - 100
Transportation equipment 39 - 39
Precision equipment 25 1 26
Misc. manufacturing 57 - 57
Trading 67 1 68
Department store / Super market 37 1 38
Various commercial 73 - 73
Life insurance 16 - 16
Non-life insurance 12 - 12
Finance 147 2 149
Real estate 43 1 44
Transportation / Warehouse 63 - 63
Telecom / Advertising 39 - 39
Electric / Gas 18 - 18
Services 161 9 170
Independent administrative institution / Special public
institution / School corporation / Association etc.
37 - 37
Total (# of Organizations) 1,304 24 1,328
Ratio (%) 98.2 1.8
� No responses: 23 organizations
� Others include “6 months”, “annual and 2nd half year after completion of 1st half year”, “revise 6 months
after development of annual plan”, “quarterly”, etc.
135
<Table 40> Approval of annual internal audit plan (by industry)
Unit: Number of organizations
Approved by
Industry
President
Board
Executive
Com
mittee
Executive in charge
ofl Audit
Kansayaku or
Audit C
omm
ittee
Others
Total
Construction 47 1 3 7 - 3 61
Fishing / Food 38 4 6 2 1 1 52
Textile / Paper / Pulp 13 - 4 1 - 1 19
Chemical 65 7 7 5 1 - 85
Medicine 21 1 3 4 - 1 30
Oil / Coal / Mining 4 - 3 1 2 - 10
Rubber 5 - - - - - 5
Glass / Soil & Stone 10 - 2 - - - 12
Steel 13 1 - 2 - - 16
Metal 16 1 4 4 1 - 26
Machine 53 1 2 8 1 - 65
Electric equipment 73 8 5 10 1 4 101
Transportation equipment 24 2 5 5 1 2 39
Precision equipment 19 3 - 2 1 - 25
Misc. manufacturing 45 5 1 5 1 1 58
Trading 61 2 1 2 1 1 68
Department store / Super market 26 2 3 4 2 1 38
Various commercial 59 6 3 2 1 3 74
Life insurance 1 13 - 1 1 - 16
Non-life insurance 1 10 1 1 - - 13
Finance 41 89 12 6 1 1 150
Real estate 38 4 2 1 - - 45
Transportation / Warehouse 47 5 5 5 - 1 63
Telecom / Advertising 34 1 4 - 1 - 40
Electric / Gas 15 - 3 - - - 18
Services 131 19 13 8 3 2 176
Independent administrative institution /
Special public institution / School
corporation / Association etc.
26 3 3 2 - - 34
Total (# of Organizations) 926 188 95 88 20 22 1,339
Ratio (%) 69.2 14.0 7.1 6.6 1.5 1.6
� No responses: 12 organizations
� Others include “CAE”, “compliance / risk management committee”, “executive in charge of
administration”, “CAE of parent company”, “internal control meeting”, and “budget committee”.
136
<Table 41> Frequency to prepare internal audit engagement plan (by industry)
Unit: Number of organizations
Frequency
Industry
Each engagem
ent
1 month
3 months
6 months
1 year
Others
Total
Construction 28 5 2 2 8 - 45
Fishing / Food 23 2 5 1 1 1 33
Textile / Paper / Pulp 8 - 1 3 1 - 13
Chemical 39 2 1 4 8 2 56
Medicine 15 2 2 2 2 - 23
Oil / Coal / Mining 6 - - - - - 6
Rubber - 1 - - - - 1
Glass / Soil & Stone 4 - - - 2 - 6
Steel 9 - 1 1 - - 11
Metal 12 1 - - 4 - 17
Machine 23 1 6 2 6 - 38
Electric equipment 46 3 2 4 9 - 64
Transportation equipment 23 3 1 2 4 - 33
Precision equipment 11 1 - 1 1 - 14
Misc. manufacturing 27 5 - 2 3 - 37
Trading 17 2 2 3 8 - 32
Department store / Super market 12 1 - 5 5 - 23
Various commercial 26 5 6 3 6 1 47
Life insurance 9 2 - - 4 - 15
Non-life insurance 4 - 1 1 2 - 8
Finance 65 30 3 11 15 - 124
Real estate 20 1 2 2 5 - 30
Transportation / Warehouse 25 2 3 5 6 - 41
Telecom / Advertising 19 3 1 - 2 1 26
Electric / Gas 6 1 - 1 3 - 11
Services 93 13 2 10 11 - 129
Independent administrative institution /
Special public institution / School
corporation / Association etc.
13 1 - 1 7 - 22
Total (# of Organizations) 583 87 41 66 123 5 905
Ratio (%) 64.4 9.6 4.5 7.3 13.6 0.6
� No responses: 6 organizations
� Others include “2 months”, “each audit item”, “both 1month and 3months”, and “arbitrarily”.
137
<Table 42> Approval internal audit engagement plan (by industry)
Unit: Number of organizations
Approved by
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
CA
E
Others
Total
Construction 20 - 1 4 - - 20 - 45
Fishing / Food 10 - - - - - 23 - 33
Textile / Paper / Pulp 4 - 1 1 - - 7 - 13
Chemical 20 - 1 3 - - 32 - 56
Medicine 1 1 - 4 1 - 14 2 23
Oil / Coal / Mining - - - - - - 6 - 6
Rubber - - - 1 - - - - 1
Glass / Soil & Stone 2 - - 1 - - 3 - 6
Steel 3 - - 1 - - 7 - 11
Metal 6 - 1 1 - - 9 - 17
Machine 16 - 1 5 - - 15 1 38
Electric equipment 20 - 1 6 1 - 37 - 65
Transportation equipment 6 - 1 4 - - 21 1 33
Precision equipment 6 1 - - 1 - 6 - 14
Misc. manufacturing 17 - 1 2 2 1 13 1 37
Trading 16 1 - 1 1 - 13 - 32
Department store / Super market 10 - - 1 - - 12 - 23
Various commercial 27 - 1 2 - - 17 - 47
Life insurance 4 3 - - - - 8 - 15
Non-life insurance 1 2 1 1 - - 3 - 8
Finance 49 6 2 12 1 2 52 1 125
Real estate 18 - - 1 - - 10 - 29
Transportation / Warehouse 10 2 - 2 - - 27 - 41
Telecom / Advertising 5 - - 3 - - 18 - 26
Electric / Gas 1 - - - - - 10 - 11
Services 56 4 2 11 - - 54 2 129
Independent administrative institution /
Special public institution / School
corporation / Association etc.
8 2 - 1 2 - 9 - 22
Total (# of Organizations) 336 22 14 68 9 3 446 8 906
Ratio (%) 37.1 2.4 1.5 7.5 1.0 0.3 49.2 0.9
� No responses: 5 organizations
� Others include “CAE of parent company”, “audit department management meeting”, “risk management
committee ”, “ no approval”, etc.
138
4. Performing Internal Audit (Tables 43 to 57)
<Table 43> Compliance with the Standards (by industry)
Unit: Number of organizations
Complying with the
Standards
Trying to comply
with the Standards
Not paying attention
at all
Total Compliance
Industry # % # % # % #
Construction 10 14.5 46 66.7 13 18.8 69
Fishing / Food 14 27.5 33 64.7 4 7.8 51
Textile / Paper / Pulp 4 16.7 14 58.3 6 25.0 24
Chemical 14 15.7 64 71.9 11 12.4 89
Medicine 8 24.2 24 72.7 1 3.0 33
Oil / Coal / Mining 3 30.0 6 60.0 1 10.0 10
Rubber 4 80.0 1 20.0 - - 5
Glass / Soil & Stone 5 35.7 8 57.1 1 7.1 14
Steel 3 17.6 11 64.7 3 17.6 17
Metal 5 15.6 17 53.1 10 31.3 32
Machine 12 17.6 45 66.2 11 16.2 68
Electric equipment 29 27.6 70 66.7 6 5.7 105
Transportation equipment 7 16.3 31 72.1 5 11.6 43
Precision equipment 4 14.8 22 81.5 1 3.7 27
Misc. manufacturing 6 9.8 51 83.6 4 6.6 61
Trading 17 22.4 46 60.5 13 17.1 76
Department store / Super market 13 32.5 22 55.0 5 12.5 40
Various commercial 16 19.5 56 68.3 10 12.2 82
Life insurance 8 47.1 7 41.2 2 11.8 17
Non-life insurance 5 38.5 7 53.8 1 7.7 13
Finance 33 19.9 92 55.4 41 24.7 166
Real estate 14 28.0 30 60.0 6 12.0 50
Transportation / Warehouse 13 18.6 47 67.1 10 14.3 70
Telecom / Advertising 15 38.5 22 56.4 2 5.1 39
Electric / Gas 3 16.7 12 66.7 3 16.7 18
Services 50 25.9 118 61.1 25 13.0 193
Independent administrative institution / Special
public institution / School corporation /
Association etc.
5 11.6 28 65.1 10 23.3 43
Total (# of Organizations) 320 930 205 1,455
Ratio (%) 22.0 63.9 14.1
Total (# of Organizations) 1,250 205 1,455
Ratio (%) 85.9 14.1
� No responses: 18 organizations
139
140
<Table 44> Type of internal audit engagements (by industry)
Unit: Number of organizations
Financial audit only Operational audit
only
Same weight on
financial and
operational audit
Primarily financial
audit
Primarily
operational audit
Total Type
Industry
# % # % # % # % # % #
Construction 1 1.4 13 18.6 23 32.9 6 8.6 27 38.6 70
Fishing / Food - - 13 24.5 12 22.6 - - 28 52.8 53
Textile / Paper / Pulp - - 2 8.3 5 20.8 1 4.2 16 66.7 24
Chemical 1 1.1 22 24.4 18 20.0 6 6.7 43 47.8 90
Medicine - - 11 33.3 6 18.2 1 3.0 15 45.5 33
Oil / Coal / Mining - - 4 40.0 2 20.0 - - 4 40.0 10
Rubber - - 2 40.0 2 40.0 - - 1 20.0 5
Glass / Soil & Stone - - 5 35.7 4 28.6 - - 5 35.7 14
Steel 1 5.9 7 41.2 3 17.6 1 5.9 5 29.4 17
Metal - - 5 16.1 11 35.5 1 3.2 14 45.2 31
Machine 1 1.5 20 29.9 20 29.9 1 1.5 25 37.3 67
Electric equipment 2 1.9 25 24.0 19 18.3 5 4.8 53 51.0 104
Transportation equipment - - 19 44.2 10 23.3 1 2.3 13 30.2 43
Precision equipment - - 9 33.3 4 14.8 - - 14 51.9 27
Misc. manufacturing 1 1.6 17 27.4 15 24.2 2 3.2 27 43.5 62
Trading 1 1.3 14 18.4 22 28.9 4 5.3 35 46.1 76
Department store / Super market - - 14 35.0 7 17.5 - - 19 47.5 40
Various commercial - - 17 20.5 18 21.7 10 12.0 38 45.8 83
Life insurance - - 3 17.6 4 23.5 - - 10 58.8 17
Non-life insurance - - 4 30.8 3 23.1 - - 6 46.2 13
Finance 1 0.6 75 44.6 16 9.5 1 0.6 75 44.6 168
Real estate 1 2.0 17 34.7 3 6.1 2 4.1 26 53.1 49
141
Financial audit only Operational audit
only
Same weight on
financial and
operational audit
Primarily financial
audit
Primarily
operational audit
Total Type
Industry
# % # % # % # % # % #
Transportation / Warehouse - - 15 21.1 23 32.4 4 5.6 29 40.8 71
Telecom / Advertising - - 12 30.8 10 25.6 2 5.1 15 38.5 39
Electric / Gas - - 7 43.8 4 25.0 1 6.3 4 25.0 16
Services 2 1.0 59 30.7 34 17.7 2 1.0 95 49.5 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - 11 25.6 11 25.6 3 7.0 18 41.9 43
Total (# of Organizations) 12 422 309 54 660 1,457
Ratio (%) 0.8 29.0 21.2 3.7 45.3
� No responses: 16 organizations
142
143
<Table 45> Classification of audit entities (by industry)
Unit: Number of organizations
By department By function Both department and
function
Total Classification
Industry # % # % # % #
Construction 49 71.0 1 1.4 19 27.5 69
Fishing / Food 33 62.3 - - 20 37.7 53
Textile / Paper / Pulp 17 70.8 1 4.2 6 25.0 24
Chemical 52 57.1 4 4.4 35 38.5 91
Medicine 18 54.5 - - 15 45.5 33
Oil / Coal / Mining 4 40.0 2 20.0 4 40.0 10
Rubber 3 60.0 - - 2 40.0 5
Glass / Soil & Stone 7 53.8 2 15.4 4 30.8 13
Steel 6 35.3 2 11.8 9 52.9 17
Metal 24 75.0 1 3.1 7 21.9 32
Machine 36 53.7 3 4.5 28 41.8 67
Electric equipment 61 58.1 1 1.0 43 41.0 105
Transportation equipment 25 58.1 3 7.0 15 34.9 43
Precision equipment 14 51.9 5 18.5 8 29.6 27
Misc. manufacturing 34 54.8 2 3.2 26 41.9 62
Trading 64 84.2 1 1.3 11 14.5 76
Department store / Super market 16 41.0 5 12.8 18 46.2 39
Various commercial 59 70.2 2 2.4 23 27.4 84
Life insurance 4 23.5 - - 13 76.5 17
Non-life insurance 5 38.5 - - 8 61.5 13
Finance 96 57.1 5 3.0 67 39.9 168
Real estate 30 60.0 1 2.0 19 38.0 50
Transportation / Warehouse 41 58.6 3 4.3 26 37.1 70
Telecom / Advertising 25 64.1 1 2.6 13 33.3 39
Electric / Gas 8 44.4 1 5.6 9 50.0 18
Services 116 60.7 6 3.1 69 36.1 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
20 46.5 4 9.3 19 44.2 43
Total (# of Organizations) 867 56 536 1,459
Ratio (%) 59.4 3.8 36.7
� No responses: 14 organizations
144
145
<Table 46> Name on internal audit engagement notice letter
Unit: Number of organizations
Chief Audit
Executive
Executive in
charge of Audit
President Board Both Executive in
charge of Audit and
Chief Audit
Executive
Both President and
Chief Audit
Executive
Others Total Name
Industry # % # % # % # % # % # % # % #
Construction 63 90.0 1 1.4 5 7.1 - - - - - - 1 1.4 70
Fishing / Food 48 90.6 1 1.9 3 5.7 - - 1 1.9 - - - - 53
Textile / Paper / Pulp 21 91.3 2 8.7 - - - - - - - - - - 23
Chemical 83 91.2 2 2.2 2 2.2 - - 1 1.1 2 2.2 1 1.1 91
Medicine 27 81.8 2 6.1 1 3.0 - - 1 3.0 - - 2 6.1 33
Oil / Coal / Mining 9 100.0 - - - - - - - - - - - - 9
Rubber 4 80.0 - - - - - - - - 1 20.0 - - 5
Glass / Soil & Stone 13 92.9 - - 1 7.1 - - - - - - - - 14
Steel 14 93.3 - - 1 6.7 - - - - - - - - 15
Metal 25 78.1 2 6.3 2 6.3 - - 2 6.3 1 3.1 - - 32
Machine 61 89.7 1 1.5 3 4.4 - - 1 1.5 1 1.5 1 1.5 68
Electric equipment 92 87.6 4 3.8 5 4.8 - - 1 1.0 1 1.0 2 1.9 105
Transportation equipment 37 86.0 4 9.3 - - - - 2 4.7 - - - - 43
Precision equipment 25 92.6 - - 2 7.4 - - - - - - - - 27
Misc. manufacturing 54 88.5 3 4.9 3 4.9 - - - - - - 1 1.6 61
Trading 62 81.6 3 3.9 5 6.6 - - 1 1.3 2 2.6 3 3.9 76
Department store / Super market 36 90.0 1 2.5 3 7.5 - - - - - - - - 40
Various commercial 68 81.9 2 2.4 5 6.0 1 1.2 1 1.2 2 2.4 4 4.8 83
Life insurance 14 82.4 - - 3 17.6 - - - - - - - - 17
Non-life insurance 12 92.3 - - - - - - - - - - 1 7.7 13
Finance 96 57.8 8 4.8 54 32.5 - - - - 1 0.6 7 4.2 166
146
Chief Audit
Executive
Executive in
charge of Audit
President Board Both Executive in
charge of Audit and
Chief Audit
Executive
Both President and
Chief Audit
Executive
Others Total Name
Industry # % # % # % # % # % # % # % #
Real estate 48 96.0 1 2.0 - - - - - - 1 2.0 - - 50
Transportation / Warehouse 57 81.4 5 7.1 5 7.1 1 1.4 1 1.4 1 1.4 70
Telecom / Advertising 37 94.9 1 2.6 - - - - - - 1 2.6 39
Electric / Gas 16 88.9 1 5.6 1 5.6 18
Services 167 87.0 5 2.6 10 5.2 1 0.5 2 1.0 4 2.1 3 1.6 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
32 76.2 2 4.8 3 7.1 - - - - 1 2.4 4 9.5 42
Total (# of Organizations) 1,221 51 116 2 14 19 32 1,455
Ratio (%) 83.9 3.5 8.0 0.1 1.0 1.3 2.2
� No responses: 18 organizations
� Others include “person in charge of the engagement”, “name of IAA”, “name of specific department’s head”, “both kansayaku and A”, “senior executive”, “CAE of
parent company”, “no notification (surprise audit)”, etc.
147
148
<Table 47> Notification of internal audit engagement to audit clients (by industry)
Unit: Number of organizations
Notifying Not notifying
(surprise)
Total Notification
Industry
# % # % #
Construction 70 100.0 - - 70
Fishing / Food 53 100.0 - - 53
Textile / Paper / Pulp 24 100.0 - - 24
Chemical 89 97.8 2 2.2 91
Medicine 33 100.0 - - 33
Oil / Coal / Mining 10 100.0 - - 10
Rubber 5 100.0 - - 5
Glass / Soil & Stone 14 100.0 - - 14
Steel 15 100.0 - - 15
Metal 30 93.8 2 6.3 32
Machine 68 100.0 - - 68
Electric equipment 103 98.1 2 1.9 105
Transportation equipment 43 100.0 - - 43
Precision equipment 26 96.3 1 3.7 27
Misc. manufacturing 61 100.0 - - 61
Trading 73 98.6 1 1.4 74
Department store / Super market 32 80.0 8 20.0 40
Various commercial 75 90.4 8 9.6 83
Life insurance 12 70.6 5 29.4 17
Non-life insurance 8 61.5 5 38.5 13
Finance 72 43.4 94 56.6 166
Real estate 48 96.0 2 4.0 50
Transportation / Warehouse 68 97.1 2 2.9 70
Telecom / Advertising 39 100.0 - - 39
Electric / Gas 18 100.0 - - 18
Services 182 94.8 10 5.2 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
40 93.0 3 7.0 43
Total (# of Organizations) 1,311 145 1,456
Ratio (%) 90.0 10.0
� No responses: 17 organizations
149
<Table 48> Reasons of surprise audit (by industry)
Unit: Number of organizations
Reason
Industry
To prevent destruction of facts
and evidences
To conduct fraud audit
To let audit client have sense
of tension
In case of special audit
requested by President
In case of urgency
The audit is based on rum
or /
anonymous letter /
whistle-blow
ing
To conduct physical inspection
Others
Total
Construction - - - - - - - - -
Fishing / Food - - - - - - - - -
Textile / Paper / Pulp - - - - - - - - -
Chemical - - 1 - - - - - 1
Medicine - - - - - - - - -
Oil / Coal / Mining - - - - - - - - -
Rubber - - - - - - - - -
Glass / Soil & Stone - - - - - - - - -
Steel - - - - - - - - -
Metal - - - - - - - - -
Machine - - - - - - - - -
Electric equipment 1 1 - - - - - 1 3
Transportation equipment - - - - - - - - -
Precision equipment 1 - - - - - 1 - 2
Misc. manufacturing - - - - - - - - -
Trading 1 - - - - - 1 - 2
Department store / Super market 6 3 3 1 2 - 5 - 20
Various commercial 7 5 2 1 1 4 - 20
Life insurance 5 1 3 - - - 5 - 14
Non-life insurance 4 3 5 - - - 3 - 15
Finance 66 58 48 9 2 4 73 3 263
Real estate 1 1 - - 1 - - - 3
Transportation / Warehouse 1 - 1 1 - - 2 - 5
Telecom / Advertising - - - - - - - - -
Electric / Gas - - - - - - - - -
Services 5 4 8 - - - 6 - 23
Independent administrative institution /
Special public institution / School corporation
/ Association etc.
2 2 2 - - - 2 - 8
Total (# of Organizations) 100 78 73 11 6 5 102 4 379
Ratio (%) 71.4 55.7 52.1 7.9 4.3 3.6 72.9 2.9
� No responses: 5 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (140 organizations) * 100
� Others include “to confirm normal operation”, “depends on audited function / operation”, etc.
150
151
<Table 49> Order of the importance of the internal control objectives (by industry)
Unit: Number of organizations
Order
Industry
(1)
(2)
(3)
(4)
(1)
(2)
(4)
(3)
(1)
(3)
(2)
(4)
(1)
(3)
(4)
(2)
(1)
(4)
(2)
(3)
(1)
(4)
(3)
(2)
(2)
(1)
(3)
(4)
(2)
(1)
(4)
(3)
(2)
(3)
(4)
(1)
(2)
(3)
(1)
(4)
(2)
(4)
(1)
(3)
(2)
(4)
(3)
(1)
(3)
(1)
(2)
(4)
(3)
(1)
(4)
(2)
(3)
(2)
(1)
(4)
(3)
(2)
(4)
(1)
(3)
(4)
(1)
(2)
(3)
(4)
(2)
(1)
(4)
(1)
(2)
(3)
(4)
(1)
(3)
(2)
(4)
(2)
(1)
(3)
(4)
(2)
(3)
(1)
(4)
(3)
(1)
(2)
(4)
(3)
(2)
(1)
Total
Construction 7 7 1 - 3 1 4 8 - 2 15 7 - 2 - - - - 5 - 2 2 - - 66
Fishing / Food 9 4 - - - - 5 4 1 1 3 8 - 4 1 2 1 1 - 3 3 - - 50
Textile / Paper / Pulp 2 1 1 - 1 - 3 5 1 2 1 1 - - - - - - 2 - 1 - - - 21
Chemical 12 10 2 - - - 9 7 3 7 10 4 1 1 - - - - 4 3 4 9 - 2 88
Medicine 5 2 - 1 - - - 3 3 - 11 1 - - - 1 - - 1 1 3 - - 32
Oil / Coal / Mining 1 - - - - - 1 - 2 2 1 2 - - - - - - - - - - 9
Rubber - - - - - - - - - 1 - 1 2 - - - - - - - 1 - - 5
Glass / Soil & Stone 3 - - - - - 1 1 1 1 1 1 - - - - - - - - 1 - - 10
Steel - 2 - - - - 7 - - - 1 4 - - - - - - - - 1 - - 15
Metal - 2 1 2 2 - 6 6 1 1 2 - - 1 1 - 1 - 2 3 - - 31
Machine 7 7 2 - 2 1 9 6 1 3 3 3 1 1 1 1 - 1 1 1 5 4 1 - 61
Electric equipment 14 6 5 1 3 - 21 13 3 4 3 2 - 1 2 - 1 6 1 6 6 1 4 103
Transportation equipment 5 - 1 - - - 10 4 1 2 5 3 - 1 - 1 - - 1 1 5 2 - - 42
Precision equipment 2 4 - 1 1 - 5 3 1 - 2 3 - - - - - - - - - 4 - 1 27
Misc. manufacturing 1 4 1 - 1 2 10 6 4 4 7 4 1 - 1 1 - - 1 1 5 6 1 - 61
Trading 5 6 3 1 5 2 7 10 2 2 2 7 - - 1 1 1 2 - - 3 7 2 3 72
Department store / Super market 4 2 - - 1 - 5 5 3 2 5 3 - - 2 1 - - - 1 3 - - - 37
Various commercial 7 7 2 1 5 - 9 6 3 3 9 5 1 1 2 1 - 3 1 3 3 6 1 2 81
Life insurance 1 - - - - - 1 6 1 - 4 1 - - - - - - - - 2 - - - 16
Non-life insurance 1 - - - 1 - 2 1 1 - 4 1 - - - - - - 1 - - 1 - - 13
Finance 5 5 - - 1 - 11 19 7 8 37 30 - - 1 3 - 1 4 4 12 7 1 1 157
Real estate 3 4 1 1 - 1 4 9 - 2 8 9 - - - 1 - - 1 - - 5 - - 49
152
Order
Industry
(1)
(2)
(3)
(4)
(1)
(2)
(4)
(3)
(1)
(3)
(2)
(4)
(1)
(3)
(4)
(2)
(1)
(4)
(2)
(3)
(1)
(4)
(3)
(2)
(2)
(1)
(3)
(4)
(2)
(1)
(4)
(3)
(2)
(3)
(4)
(1)
(2)
(3)
(1)
(4)
(2)
(4)
(1)
(3)
(2)
(4)
(3)
(1)
(3)
(1)
(2)
(4)
(3)
(1)
(4)
(2)
(3)
(2)
(1)
(4)
(3)
(2)
(4)
(1)
(3)
(4)
(1)
(2)
(3)
(4)
(2)
(1)
(4)
(1)
(2)
(3)
(4)
(1)
(3)
(2)
(4)
(2)
(1)
(3)
(4)
(2)
(3)
(1)
(4)
(3)
(1)
(2)
(4)
(3)
(2)
(1)
Total
Transportation / Warehouse 8 3 - - 2 - 11 9 2 1 9 7 - - 1 - - - 3 - 7 3 - - 66
Telecom / Advertising 2 2 1 - 1 - 8 4 3 1 5 3 - 2 - - - 1 2 - - 1 - 1 37
Electric / Gas 1 1 - - - 3 - - 3 1 5 - - - - - - - - - 2 - - 16
Services 17 8 4 1 3 2 15 35 11 5 24 20 2 - 1 - - 1 5 4 11 14 2 4 189
Independent administrative
institution / Special public
institution / School corporation /
Association etc.
- - 1 - - - 3 6 2 1 6 6 1 - - 1 - - - - 4 6 - 3 40
Total (# of Organizations) 122 87 26 9 32 9 170 176 57 57 178 143 9 13 14 15 3 9 39 20 79 97 9 21 1,394
Ratio (%) 8.8 6.2 1.9 0.6 2.3 0.6 12.2 12.6 4.1 4.1 12.8 10.3 0.6 0.9 1.0 1.1 0.2 0.6 2.8 1.4 5.7 7.0 0.6 1.5
� No responses: 79 organizations
<Note> (1) Reliability of financial reporting (2) Compliance with applicable laws and regulations (3) Safeguard of assets (4) Effectiveness and efficiency of operations
153
154
<Table 50> Implementation of self-assessment by audit clients (by industry)
Unit: Number of organizations
Self-Assessment by clients
Industry
Implementing Partially
implementing
Not
implementing
Total
Construction 13 24 32 69
Fishing / Food 9 25 18 52
Textile / Paper / Pulp 3 5 16 24
Chemical 15 31 44 90
Medicine 8 10 15 33
Oil / Coal / Mining 2 2 4 8
Rubber - 1 4 5
Glass / Soil & Stone 1 6 7 14
Steel 5 5 6 16
Metal 5 4 23 32
Machine 7 22 37 66
Electric equipment 24 28 53 105
Transportation equipment 14 14 15 43
Precision equipment 4 5 18 27
Misc. manufacturing 6 16 40 62
Trading 20 8 46 74
Department store / Super market 14 14 12 40
Various commercial 13 35 36 84
Life insurance 13 2 2 17
Non-life insurance 10 3 - 13
Finance 141 15 12 168
Real estate 5 13 32 50
Transportation / Warehouse 20 26 25 71
Telecom / Advertising 11 11 17 39
Electric / Gas 7 8 3 18
Services 43 53 97 193
Independent administrative institution /
Special public institution / School
corporation / Association etc.
7 11 24 42
Total (# of Organizations) 420 397 638 1,455
Ratio (%) 28.9 27.3 43.8
Total (# of Organizations) 817 638 1,455
Ratio (%) 56.2 43.8
� No responses: 18 organizations
155
<Table 51> Development of self-assessment checklist (by industry)
Unit: Number of organizations
Who develop the check list?
Industry
IAA
Audit clients
Adm
inistration dept.
Together with IA
A and audit
clients
Together with IA
A and
Adm
inistration Dept
Together with audit client and
Adm
inistration dept.
Total
Construction 13 9 5 3 5 2 37
Fishing / Food 12 9 3 4 6 - 34
Textile / Paper / Pulp 3 3 - - 1 - 7
Chemical 21 9 6 4 2 4 46
Medicine 6 8 1 - - 3 18
Oil / Coal / Mining 1 2 - - - 1 4
Rubber 1 - - - - - 1
Glass / Soil & Stone 1 1 1 3 1 - 7
Steel 5 1 1 2 1 - 10
Metal 8 - 1 - - - 9
Machine 9 5 6 4 5 - 29
Electric equipment 25 14 5 1 6 1 52
Transportation equipment 14 7 1 3 2 1 28
Precision equipment 5 2 1 1 - - 9
Misc. manufacturing 10 7 2 1 2 - 22
Trading 13 5 4 1 3 2 28
Department store / Super market 12 4 5 2 4 1 28
Various commercial 13 11 5 9 5 4 47
Life insurance - 4 7 - 1 3 15
Non-life insurance 1 2 7 - - 3 13
Finance 41 25 50 10 19 11 156
Real estate 3 8 1 2 2 2 18
Transportation / Warehouse 20 15 4 2 1 4 46
Telecom / Advertising 11 2 2 3 2 2 22
Electric / Gas 3 5 3 2 2 - 15
Services 35 26 14 7 12 2 96
Independent administrative institution /
Special public institution / School
corporation / Association etc.
2 7 4 2 1 2 18
Total (# of Organizations) 288 191 139 66 83 48 815
Ratio (%) 35.3 23.4 17.1 8.1 10.2 5.9
� No responses: 2 organizations
156
<Table 52> Audit techniques used by the IAA at field work (by industry)
Unit: Number of organizations
Techniques
Industry
Interview general
condition with responsible
person
Interview details w
ith person in
charge
Exam
ine information and
ledgers
Observe w
orking
condition and working
environment
Count cash and securities
Count non-cash item
s
Others
Total
Construction 59 64 69 30 38 23 1 284
Fishing / Food 50 50 52 38 36 28 1 255
Textile / Paper / Pulp 21 19 22 10 14 7 1 94
Chemical 85 82 89 46 50 41 - 393
Medicine 30 27 28 16 13 7 - 121
Oil / Coal / Mining 9 8 10 4 5 5 - 41
Rubber 5 5 5 2 2 2 - 21
Glass / Soil & Stone 14 12 13 4 7 4 - 54
Steel 15 14 15 8 8 8 - 68
Metal 25 25 29 15 21 9 1 125
Machine 63 57 66 31 38 31 - 286
Electric equipment 99 91 98 63 58 46 1 456
Transportation equipment 33 39 42 18 15 8 1 156
Precision equipment 24 22 26 13 13 14 - 112
Misc. manufacturing 56 48 59 36 31 16 1 247
Trading 65 65 72 41 48 31 - 322
Department store / Super market 36 37 39 27 28 16 - 183
Various commercial 73 69 80 56 64 43 1 386
Life insurance 17 17 17 17 10 12 - 90
Non-life insurance 12 13 12 11 8 9 - 65
Finance 142 148 167 130 128 116 2 833
Real estate 46 45 49 29 30 18 - 217
Transportation / Warehouse 59 66 69 40 45 26 - 305
Telecom / Advertising 35 37 39 26 22 17 - 176
Electric / Gas 15 17 18 9 8 8 - 75
Services 169 153 187 124 99 73 3 808
Independent administrative institution /
Special public institution / School corporation /
Association etc.
35 35 43 20 16 13 - 162
Total (# of Organizations) 1,292 1,265 1,415 864 855 631 13 6,335
Ratio (%) 88.7 86.8 97.1 59.3 58.7 43.3 0.9
� No responses: 16 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,457 organizations) * 100
� Others include “evaluate controls and test samples”, “send out questionnaire”, “examine organization’s
public information”, etc.
157
<Table 53> Format of working papers (by industry)
Unit: Number of organizations
Format
Industry
Established
standardized
format
Established
for specific
audit subject
Not
established
Others Total
Construction 50 10 10 - 70
Fishing / Food 42 1 10 - 53
Textile / Paper / Pulp 16 1 6 - 23
Chemical 58 9 23 - 90
Medicine 25 2 6 - 33
Oil / Coal / Mining 7 - 3 - 10
Rubber 3 - 2 - 5
Glass / Soil & Stone 8 1 4 - 13
Steel 7 1 7 - 15
Metal 22 4 6 - 32
Machine 39 10 19 - 68
Electric equipment 67 10 27 - 104
Transportation equipment 26 3 14 - 43
Precision equipment 21 2 3 1 27
Misc. manufacturing 39 6 14 1 60
Trading 52 3 18 1 74
Department store / Super market 24 7 9 - 40
Various commercial 61 7 14 1 83
Life insurance 17 - - - 17
Non-life insurance 11 2 - - 13
Finance 139 11 17 - 167
Real estate 30 4 15 1 50
Transportation / Warehouse 50 4 16 - 70
Telecom / Advertising 32 2 5 - 39
Electric / Gas 11 3 4 - 18
Services 146 18 28 1 193
Independent administrative institution /
Special public institution / School
corporation / Association etc.
27 2 13 1 43
Total (# of Organizations) 1,030 123 293 7 1,453
Ratio (%) 70.9 8.5 20.2 0.5
� No responses: 20 organizations
� Others include “under consideration”, “established but not always used”, “attached to audit report as
information”, and “not yet implementation phase”.
158
<Table 54> Use of Computer Assisted Audit Techniques (by industry)
Unit: Number of organizations
Use of CAAT
Industry
Using Not using Total
Construction 4 66 70
Fishing / Food 2 51 53
Textile / Paper / Pulp 3 20 23
Chemical 7 83 90
Medicine 2 31 33
Oil / Coal / Mining 2 8 10
Rubber - 4 4
Glass / Soil & Stone - 14 14
Steel - 16 16
Metal 2 30 32
Machine 5 63 68
Electric equipment 9 96 105
Transportation equipment 1 42 43
Precision equipment - 27 27
Misc. manufacturing 4 57 61
Trading 4 69 73
Department store / Super market 5 35 40
Various commercial 6 77 83
Life insurance 4 12 16
Non-life insurance 1 12 13
Finance 25 143 168
Real estate - 48 48
Transportation / Warehouse 8 62 70
Telecom / Advertising 6 33 39
Electric / Gas 2 16 18
Services 11 180 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 42 43
Total (# of Organizations) 114 1,337 1,451
Ratio (%) 7.9 92.1
� No responses: 22 organizations
159
<Table 55> Purpose of use of Computer Assisted Audit Techniques (by industry)
Unit: Number of organizations
Purpose
Industry
General support tool
Data analysis tool
Internal controls
evaluation tool
Continuous
monitoring tool
Managem
ent tool of
Internal Audit
Activities
Others
Total
Construction 1 1 - - 1 - 3
Fishing / Food 1 - - - 1 - 2
Textile / Paper / Pulp 1 - 1 - - - 2
Chemical - 5 - 1 - - 6
Medicine 1 - - 1 - - 2
Oil / Coal / Mining 1 - - - 1 - 2
Rubber - - - - - - -
Glass / Soil & Stone - - - - - - -
Steel - - - - - - -
Metal 1 - - - - - 1
Machine 1 1 1 1 - 1 5
Electric equipment 2 4 2 - 1 - 9
Transportation equipment - 1 - - - - 1
Precision equipment - - - - - - -
Misc. manufacturing 1 2 - 1 - - 4
Trading 3 - - 1 - 4
Department store / Super market 1 - 1 - 2 - 4
Various commercial 2 2 1 1 - - 6
Life insurance 3 - - - 1 - 4
Non-life insurance 1 - - - - - 1
Finance 16 1 2 2 3 1 25
Real estate - - - - - - -
Transportation / Warehouse 3 2 1 1 - - 7
Telecom / Advertising 3 1 1 1 - - 6
Electric / Gas 1 1 - - - - 2
Services 4 5 - - 2 - 11
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 - - - - 1
Total (# of Organizations) 47 27 10 10 12 2 108
Ratio (%) 43.5 25.0 9.3 9.3 11.1 1.9
� No responses: 6 organizations
� Others include “sampling tool” and “follow-up tool”.
160
<Table 56> Outsourcing of the IAA (by industry)
Unit: Number of organizations
Outsourcing
Industry
Outsourcing e
ntire IAA
Outsourcing p
artially
Not
Outsourcing
Total
Construction - 3 67 70
Fishing / Food - 3 48 51
Textile / Paper / Pulp - 4 20 24
Chemical - 5 84 89
Medicine - 1 32 33
Oil / Coal / Mining - 1 9 10
Rubber - - 5 5
Glass / Soil & Stone - - 14 14
Steel - 2 14 16
Metal - 1 30 31
Machine - 4 63 67
Electric equipment - 8 97 105
Transportation equipment - 5 39 44
Precision equipment - 2 25 27
Misc. manufacturing - 3 57 60
Trading - 8 65 73
Department store / Super market - 3 36 39
Various commercial - 4 76 80
Life insurance - 8 9 17
Non-life insurance - 5 8 13
Finance - 41 126 167
Real estate - 8 42 50
Transportation / Warehouse - 9 61 70
Telecom / Advertising - 5 32 37
Electric / Gas - 1 17 18
Services - 16 172 188
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 6 36 42
Total (# of Organizations) - 156 1,284 1,440
Ratio (%) - 10.8 89.2
Total (# of Organizations) 156 1,284 1,440
Ratio (%) 10.8 89.2
� No responses: 33 organizations
161
<Table 57> Method of outsourcing of the IAA (by industry)
Unit: Number of organizations
Outsourcing
Industry
Outsourcing IA
A to
specific person
within organization
Co-w
orking with
specific person within organiz
ation and
IAA
Co-sourcing w
ith
third-party and IAA
Outsourcing IA
A to
their-party
Total
Construction - 2 1 - 3
Fishing / Food - - 2 1 3
Textile / Paper / Pulp - 1 1 1 3
Chemical - 2 3 - 5
Medicine - - 1 - 1
Oil / Coal / Mining - 1 - - 1
Rubber - - - - -
Glass / Soil & Stone - - - - -
Steel - 1 1 - 2
Metal - 1 - - 1
Machine - 1 1 2 4
Electric equipment 1 3 3 1 8
Transportation equipment - 2 1 2 5
Precision equipment - - 2 - 2
Misc. manufacturing 1 1 - 1 3
Trading 1 2 2 3 8
Department store / Super market - 1 1 1 3
Various commercial - 1 2 1 4
Life insurance - 1 6 1 8
Non-life insurance - - 3 2 5
Finance - 3 11 25 39
Real estate - 2 4 1 7
Transportation / Warehouse 3 1 4 1 9
Telecom / Advertising - 1 2 2 5
Electric / Gas - - 1 - 1
Services 1 2 7 5 15
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 1 3 2 6
Total (# of Organizations) 7 30 62 52 151
Ratio (%) 4.6 19.9 41.1 34.4
� No responses: 5 organizations
162
5. Internal Audit Report and Follow-up (Tables 58 to 74)
<Table 58> Confirming findings with audit clients before issuing internal audit report (by industry)
Unit: Number of organizations
Method of confirmation
Industry
Confirm
ing
during
fieldwork
Confirm
ing by fax
/
Confirm
ing
both during
fieldwork and by fa
x / email
Confirm
ing by oth
er
methods
Not
confirming
Total
Construction 28 11 26 3 2 70
Fishing / Food 27 8 16 2 - 53
Textile / Paper / Pulp 8 4 10 - 1 23
Chemical 34 16 39 - 2 91
Medicine 8 6 15 2 2 33
Oil / Coal / Mining 2 3 4 1 - 10
Rubber 2 - 2 - - 4
Glass / Soil & Stone 4 5 5 - - 14
Steel 3 5 8 - - 16
Metal 13 4 13 - 2 32
Machine 30 15 21 - 2 68
Electric equipment 39 20 41 4 - 104
Transportation equipment 19 6 15 1 2 43
Precision equipment 11 7 8 1 - 27
Misc. manufacturing 29 13 19 - 1 62
Trading 39 10 21 1 4 75
Department store / Super market 25 3 10 1 1 40
Various commercial 43 7 26 4 3 83
Life insurance 9 - 6 2 - 17
Non-life insurance 4 1 8 - - 13
Finance 119 4 34 7 4 168
Real estate 30 5 12 1 1 49
Transportation / Warehouse 29 11 23 4 3 70
Telecom / Advertising 19 4 13 2 38
Electric / Gas 6 3 8 1 18
Services 110 21 49 6 5 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
19 3 17 2 1 42
Total (# of Organizations) 709 195 469 43 38 1,454
Ratio (%) 48.8 13.4 32.3 3.0 2.6
Total (# of Organizations) 1,416 38 1,454
Ratio (%) 97.4 2.6
� No responses: 19 organizations
<Table 59> Timing of the reporting of engagement outcomes (by industry)
163
Unit: Number of organizations
Timing
Industry
After each
engagement
At the end of
fiscal year
Not consistent
- D
epends on
audit theme
Periodically
(Quarterly, S
emi-ann
ually, etc)
Total
Construction 54 3 5 8 70
Fishing / Food 43 - 2 8 53
Textile / Paper / Pulp 20 - 2 1 23
Chemical 75 - 4 12 91
Medicine 28 - 2 2 32
Oil / Coal / Mining 8 - 1 1 10
Rubber 3 - - 2 5
Glass / Soil & Stone 14 - - - 14
Steel 10 2 1 3 16
Metal 29 - - 3 32
Machine 53 1 5 9 68
Electric equipment 95 - 5 5 105
Transportation equipment 36 1 2 4 43
Precision equipment 23 1 1 2 27
Misc. manufacturing 51 1 1 9 62
Trading 67 - 1 8 76
Department store / Super market 29 1 3 7 40
Various commercial 69 2 5 8 84
Life insurance 15 - 1 1 17
Non-life insurance 11 - 1 1 13
Finance 150 2 2 14 168
Real estate 45 - 1 4 50
Transportation / Warehouse 54 2 4 11 71
Telecom / Advertising 31 2 1 4 38
Electric / Gas 12 1 - 5 18
Services 163 5 7 15 190
Independent administrative institution /
Special public institution / School
corporation / Association etc.
26 7 3 6 42
Total (# of Organizations) 1,214 31 60 153 1,458
Ratio (%) 83.3 2.1 4.1 10.5
� No responses: 15 organizations
164
<Table 60> Format of internal audit report (by industry)
Unit: Number of organizations
Format
Industry
Summary
only
Detailed
Only
Both
summary
and detailed
Total
Construction 18 12 38 68
Fishing / Food 10 7 36 53
Textile / Paper / Pulp 5 3 14 22
Chemical 20 21 50 91
Medicine 4 10 19 33
Oil / Coal / Mining 3 2 5 10
Rubber 1 2 2 5
Glass / Soil & Stone 4 3 7 14
Steel 4 3 8 15
Metal 9 8 15 32
Machine 21 12 34 67
Electric equipment 22 27 54 103
Transportation equipment 12 7 24 43
Precision equipment 6 4 17 27
Misc. manufacturing 15 15 31 61
Trading 14 14 47 75
Department store / Super market 8 5 26 39
Various commercial 28 16 40 84
Life insurance 3 4 10 17
Non-life insurance 1 2 10 13
Finance 18 34 115 167
Real estate 10 13 27 50
Transportation / Warehouse 14 17 40 71
Telecom / Advertising 6 9 24 39
Electric / Gas 4 2 12 18
Services 36 39 114 189
Independent administrative institution /
Special public institution / School
corporation / Association etc.
10 8 25 43
Total (# of Organizations) 306 299 844 1,449
Ratio (%) 21.1 20.6 58.2
� No responses: 24 organizations
165
<Table 61> Distribution of summary report if only summary report was issued (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Internal Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
Executive in charge
of audit client
Others
Total
Construction 14 - 6 4 7 2 3 1 37
Fishing / Food 10 - - - 3 - 2 - 15
Textile / Paper / Pulp 5 - - 1 1 - 1 - 8
Chemical 19 4 1 1 2 - 6 - 33
Medicine 4 - - - - - 1 - 5
Oil / Coal / Mining 3 - 2 - 2 - 2 - 9
Rubber 1 - - - - - - - 1
Glass / Soil & Stone 4 - - - - - 3 - 7
Steel 3 - - 1 1 - - - 5
Metal 8 - 2 1 2 - 2 - 15
Machine 18 1 - 4 2 - 6 - 31
Electric equipment 19 2 1 3 5 1 10 - 41
Transportation equipment 6 2 4 2 6 - 5 1 26
Precision equipment 6 - - - 1 - 1 1 9
Misc. manufacturing 14 1 - 1 1 - 3 - 20
Trading 14 - - 2 3 1 3 2 25
Department store / Super market 7 - - 1 1 - 2 - 11
Various commercial 24 5 1 - 7 2 6 1 46
Life insurance 2 1 - - - - 1 - 4
Non-life insurance - - - - - - - - -
Finance 13 7 3 4 8 - 5 1 41
Real estate 10 - - 2 2 - 2 - 16
Transportation / Warehouse 13 2 1 2 3 - 1 1 23
Telecom / Advertising 6 - 1 1 2 - 1 - 11
Electric / Gas 3 - 2 - - - - - 5
Services 30 5 3 3 10 1 12 1 65
Independent administrative
institution / Special public institution
/ School corporation / Association
etc.
9 1 1 - - - 1 - 12
Total (# of Organizations) 265 31 28 33 69 7 79 9 521
Ratio (%) 88.6 10.4 9.4 11.0 23.1 2.3 26.4 3.0
� No responses: 7 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (299 organizations) * 100
� Others include “administration executive”, “parent company”, “management committee”, “board and
kansayaku”, “internal control meeting”, and “general manager of head office”.
166
<Table 62> Distribution of detailed report if only detailed report was issued (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Internal Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
Executive in charge
of audit client
Others
Total
Construction 9 - 1 4 2 1 1 - 18
Fishing / Food 5 - 2 2 1 1 2 1 14
Textile / Paper / Pulp 2 - - - - - 1 - 3
Chemical 18 2 - 5 7 1 11 2 46
Medicine 10 3 1 1 6 - 5 - 26
Oil / Coal / Mining 2 - 1 - 1 - 1 - 5
Rubber 2 1 - 1 1 - 2 - 7
Glass / Soil & Stone 2 - - 1 1 - 1 - 5
Steel 3 - 1 2 1 - 2 - 9
Metal 8 - 1 3 3 - 3 - 18
Machine 10 - - 1 3 - 5 1 20
Electric equipment 22 1 - 4 7 - 10 2 46
Transportation equipment 5 1 1 1 3 - 2 - 13
Precision equipment 3 - - 2 - - - - 5
Misc. manufacturing 14 1 2 3 6 1 5 - 32
Trading 12 2 - 2 4 - 5 1 26
Department store / Super market 4 - - - 1 - - - 5
Various commercial 14 3 - 1 5 - 6 - 29
Life insurance 1 1 - 1 1 - 1 1 6
Non-life insurance - 1 2 - - - - - 3
Finance 26 11 5 8 7 2 8 4 71
Real estate 12 1 - 1 3 - 2 - 19
Transportation / Warehouse 14 2 - 1 4 - 7 1 29
Telecom / Advertising 8 1 - 2 1 - 4 - 16
Electric / Gas 1 - - 1 1 - 1 - 4
Services 34 5 2 5 11 2 12 1 72
Independent administrative
institution / Special public institution
/ School corporation / Association
etc.
6 3 2 1 3 - 1 - 16
Total (# of Organizations) 247 39 21 53 83 8 98 14 563
Ratio (%) 84.6 13.4 7.2 18.2 28.4 2.7 33.6 4.8
� No responses: 7 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (292 organizations) * 100
� Others include “executive”, “administration executive”, “administration related departments”, “head of
audit client”, “parent company”, etc.
167
<Table 63> Distribution of audit reports if both summary and detailed reports were issued (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Internal Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
Executive in charge
of audit client
Others
Total
Construction 31 7 9 7 15 - 16 1 86
Fishing / Food 32 10 5 10 18 - 16 - 91
Textile / Paper / Pulp 13 1 1 4 6 - 9 - 34
Chemical 42 9 5 18 19 2 32 1 128
Medicine 14 4 5 6 8 1 11 1 50
Oil / Coal / Mining 4 - - 2 1 - 1 - 8
Rubber 2 - - 1 1 - 1 - 5
Glass / Soil & Stone 7 - - 1 4 - 4 1 17
Steel 8 - 3 4 7 1 4 1 28
Metal 12 3 3 5 8 - 9 - 40
Machine 29 7 - 10 19 5 20 5 95
Electric equipment 47 10 3 13 23 1 30 2 129
Transportation equipment 18 2 3 11 12 2 20 - 68
Precision equipment 14 3 1 2 7 - 8 1 36
Misc. manufacturing 27 8 2 5 13 3 13 1 72
Trading 43 8 3 10 20 2 21 7 114
Department store / Super market 21 9 5 4 13 3 16 3 74
Various commercial 36 6 3 8 21 - 24 3 101
Life insurance 7 4 3 7 6 1 9 - 37
Non-life insurance 4 5 7 6 2 - 5 - 29
Finance 86 45 36 35 60 9 54 4 329
Real estate 24 3 7 5 12 2 13 - 66
Transportation / Warehouse 32 8 10 13 16 3 23 1 106
Telecom / Advertising 21 - 5 6 12 - 8 - 52
Electric / Gas 9 2 5 2 5 1 8 - 32
Services 100 18 19 16 50 7 60 4 274
Independent administrative
institution / Special public institution
/ School corporation / Association
etc.
17 6 6 7 6 1 11 3 57
Total (# of Organizations) 700 178 149 218 384 44 446 39 2,158
Ratio (%) 84.8 21.6 18.1 26.4 46.5 5.3 54.1 4.7
� No responses: 19 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (825 organizations) * 100
� Others include “head of related department”, “compliance committee”, “head of accounting department”,
“administration department”, etc.
168
<Table 64> Distribution of copy of summary report if summary report was issued (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Internal Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
Executive in charge of
audit client
Executive in charge of
related department
External A
uditor
Others
Total
Construction 13 7 12 6 29 2 22 10 1 4 106
Fishing / Food 7 5 4 5 14 3 23 11 3 1 76
Textile / Paper / Pulp 3 1 1 2 6 - 8 4 1 1 27
Chemical 13 7 4 9 36 4 28 18 3 5 127
Medicine 7 2 3 1 11 1 11 2 - - 38
Oil / Coal / Mining - - 2 - 4 - 7 5 - 1 19
Rubber 1 - 1 - 2 - 1 - - 5
Glass / Soil & Stone 3 - - 2 8 - 4 2 - - 19
Steel - 1 1 - 3 - 7 3 - - 15
Metal 5 2 2 5 9 1 11 1 1 3 40
Machine 12 3 2 8 24 2 24 8 3 2 88
Electric equipment 22 6 4 11 39 3 27 14 - 4 130
Transportation equipment 10 2 4 8 18 2 19 5 2 1 71
Precision equipment 6 3 2 5 14 - 13 3 2 2 50
Misc. manufacturing 10 5 - 7 15 4 28 9 2 1 81
Trading 17 5 1 5 27 2 32 17 4 5 115
Department store / Super market 12 1 4 7 11 1 14 4 - - 54
Various commercial 26 12 4 6 34 5 29 19 3 5 143
Life insurance 5 4 2 4 6 - 6 3 - 2 32
Non-life insurance 2 1 3 3 3 1 3 2 - - 18
Finance 30 21 22 23 38 6 38 19 3 6 206
Real estate 7 2 4 3 15 2 12 3 1 2 51
Transportation / Warehouse 16 8 7 11 21 1 21 12 1 2 100
Telecom / Advertising 10 1 5 7 17 1 11 3 1 - 56
Electric / Gas 4 1 3 1 5 1 4 1 1 2 23
Services 43 21 14 11 65 11 62 28 5 8 268
Independent administrative institution /
Special public institution / School corporation /
Association etc.
5 6 8 2 8 2 13 5 2 2 53
Total (# of Organizations) 289 127 119 152 482 55 478 211 39 59 2,011
Ratio (%) 35.9 15.8 14.8 18.9 60.0 6.8 59.5 26.2 4.9 7.3
� No responses: 346 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (804 organizations) * 100
� Others include “board member and kansayaku etc.”, “compliance committee”, “open”, “open for internal
audit staff”, etc.
169
<Table 65> Distribution of copy of detailed report if detailed report was issued (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
Executive in charge of
Internal Audit
Kansayaku or A
udit
Com
mittee
Executive O
fficer
Executive in charge of
audit client
Executive in charge of
related department
External A
uditor
Others
Total
Construction 12 4 5 4 19 1 22 10 2 5 84
Fishing / Food 4 3 2 7 15 1 20 12 - 1 65
Textile / Paper / Pulp 2 1 - 4 8 1 6 4 1 1 28
Chemical 18 6 - 13 31 5 37 19 8 4 141
Medicine 7 3 3 3 16 2 16 1 2 2 55
Oil / Coal / Mining - - 1 - 4 - 6 2 - 1 14
Rubber - - 1 1 3 - 2 - - - 7
Glass / Soil & Stone 2 - 3 6 - 7 4 - 1 23
Steel 1 - 1 1 5 - 8 2 1 - 19
Metal 9 1 - 3 10 1 13 2 - 3 42
Machine 15 3 - 6 22 2 24 11 2 3 88
Electric equipment 18 6 4 9 38 2 39 18 - 7 141
Transportation equipment 7 - 1 5 15 2 13 5 1 - 49
Precision equipment 5 1 1 5 11 - 11 2 1 2 39
Misc. manufacturing 7 2 2 4 13 - 24 5 4 4 65
Trading 15 2 1 4 28 2 32 14 3 7 108
Department store / Super market 8 2 3 6 8 1 18 8 - - 54
Various commercial 25 4 2 4 26 2 24 13 - - 107
Life insurance 5 2 1 5 4 1 7 5 3 1 34
Non-life insurance 1 - 2 4 3 - 6 3 - - 19
Finance 30 19 16 16 26 4 59 33 - 11 214
Real estate 5 - 3 2 15 1 21 5 1 3 56
Transportation / Warehouse 19 3 4 10 24 - 29 10 3 4 106
Telecom / Advertising 2 - 1 4 13 - 16 5 1 1 43
Electric / Gas 3 1 - 2 6 1 8 3 1 - 25
Services 39 14 5 12 60 6 75 31 3 10 255
Independent administrative institution /
Special public institution / School corporation /
Association etc.
11 5 4 3 11 1 15 6 2 2 60
Total (# of Organizations) 270 82 63 140 440 36 558 233 43 76 1,941
Ratio (%) 32.3 9.8 7.5 16.7 52.6 4.3 66.7 27.9 5.1 9.1
� No responses: 307 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (836 organizations) * 100
� Others include “executives (include board members)”, “head of administration”, “head of department”, etc.
170
<Table 66> Description of recommendations in internal audit report (by industry)
Unit: Number of organizations
Recommendations
Industry
Describing Describing
as necessary
Not
describing
Total
Construction 31 32 6 69
Fishing / Food 23 24 5 52
Textile / Paper / Pulp 10 12 1 23
Chemical 53 35 3 91
Medicine 19 12 2 33
Oil / Coal / Mining 6 4 - 10
Rubber 2 3 - 5
Glass / Soil & Stone 7 5 2 14
Steel 5 10 1 16
Metal 17 11 3 31
Machine 36 26 6 68
Electric equipment 54 42 7 103
Transportation equipment 23 18 2 43
Precision equipment 14 12 1 27
Misc. manufacturing 33 25 4 62
Trading 36 31 9 76
Department store / Super market 25 13 2 40
Various commercial 39 36 7 82
Life insurance 9 5 3 17
Non-life insurance 3 7 3 13
Finance 86 64 18 168
Real estate 32 16 2 50
Transportation / Warehouse 41 26 3 70
Telecom / Advertising 29 9 1 39
Electric / Gas 5 10 2 17
Services 106 74 10 190
Independent administrative institution /
Special public institution / School
corporation / Association etc.
16 23 4 43
Total (# of Organizations) 760 585 107 1,452
Ratio (%) 52.3 40.3 7.4
Total (# of Organizations) 1,345 107 1,452
Ratio (%) 92.6 7.4
� No responses: 21 organizations
171
<Table 67> Preparation of recommendations separately from internal audit report (by industry)
Unit: Number of organizations
Separate Recommendation
Industry Preparing
Not
Preparing Total
Construction 34 35 69
Fishing / Food 18 34 52
Textile / Paper / Pulp 10 13 23
Chemical 35 56 91
Medicine 14 19 33
Oil / Coal / Mining 2 8 10
Rubber - 5 5
Glass / Soil & Stone 4 10 14
Steel 3 13 16
Metal 9 23 32
Machine 33 35 68
Electric equipment 43 57 100
Transportation equipment 18 23 41
Precision equipment 11 16 27
Misc. manufacturing 31 29 60
Trading 39 35 74
Department store / Super market 21 18 39
Various commercial 46 34 80
Life insurance 9 8 17
Non-life insurance 5 8 13
Finance 89 78 167
Real estate 24 24 48
Transportation / Warehouse 30 41 71
Telecom / Advertising 25 14 39
Electric / Gas 5 13 18
Services 104 87 191
Independent administrative institution /
Special public institution / School
corporation / Association etc.
17 26 43
Total (# of Organizations) 679 762 1,441
Ratio (%) 47.1 52.9
� No responses: 32 organizations
172
173
<Table 68> Average days to prepare internal audit report (by industry)
Unit: Number of organizations
Days
Industry
1 2 3 4 5 6 7 8�15 16�21 22�1M 1M�
1.5M
1.5M�
2M
2M� Total
Construction 3 5 6 2 6 - 12 13 7 8 3 3 1 69
Fishing / Food 4 2 5 1 2 - 4 19 7 5 1 2 1 53
Textile / Paper / Pulp 2 4 3 - 1 - 3 5 1 1 - - 1 21
Chemical 7 7 13 1 6 1 10 23 5 10 2 1 3 89
Medicine - 3 - - 1 - 4 13 4 8 - - - 33
Oil / Coal / Mining - - 2 1 1 - - 1 1 3 1 - - 10
Rubber - - - 1 - - 1 3 - - - - - 5
Glass / Soil & Stone - - - 1 1 - - 7 1 3 - - - 13
Steel - 3 1 - - - - 5 1 5 - - 1 16
Metal 2 4 2 - 3 1 6 7 4 1 1 - - 31
Machine 5 5 8 1 7 - 4 20 6 8 2 - 1 67
Electric equipment 6 9 7 - 14 1 5 35 7 18 2 - - 104
Transportation equipment 4 2 4 2 4 - 3 10 4 6 1 - 1 41
Precision equipment - - 5 - 3 - 1 6 4 4 1 - 2 26
Misc. manufacturing 3 6 11 2 8 - 7 12 6 5 1 - - 61
Trading 6 9 4 2 6 1 7 22 8 4 2 - 4 75
Department store / Super market 3 1 7 2 - 6 10 1 5 1 - 1 37
Various commercial 12 14 6 3 1 - 11 16 6 6 1 - 2 78
Life insurance - - 1 1 - - 1 5 3 5 - 1 - 17
Non-life insurance - - - - - - 1 7 2 3 - - - 13
Finance 6 24 29 10 22 1 11 35 8 14 2 - 3 165
Real estate 2 2 2 2 9 - 8 10 3 8 2 - 1 49
Transportation / Warehouse 7 6 5 6 - 6 21 4 11 - 2 - 68
Telecom / Advertising 3 2 4 2 2 - 5 11 4 4 - - 1 38
174
Days
Industry
1 2 3 4 5 6 7 8�15 16�21 22�1M 1M�
1.5M
1.5M�
2M
2M� Total
Electric / Gas 2 - 2 - 1 - 2 2 - 3 2 - 4 18
Services 16 13 23 2 27 1 23 49 9 19 1 1 3 187
Independent administrative institution /
Special public institution / School
corporation / Association etc.
3 3 3 - 3 1 3 12 5 6 1 - 1 41
Total (# of Organizations) 96 124 153 34 136 7 144 379 111 173 27 10 31 1,425
Ratio (%) 6.7 8.8 10.7 2.3 9.4 0.6 10.1 26.6 7.8 12.2 1.9 0.7 2.2
� No responses: 48 organizations
175
176
<Table 69> Style of internal audit report (by industry)
Unit: Number of organizations
Style
Industry
Developed
standardized style
Developed
Standardized
style for some aud
its
Not
Developed
Total
Construction 53 14 3 70
Fishing / Food 44 7 2 53
Textile / Paper / Pulp 18 6 - 24
Chemical 75 9 6 90
Medicine 32 - 1 33
Oil / Coal / Mining 6 4 - 10
Rubber 4 1 - 5
Glass / Soil & Stone 11 1 1 13
Steel 8 7 1 16
Metal 27 5 - 32
Machine 55 10 3 68
Electric equipment 83 12 9 104
Transportation equipment 31 9 2 42
Precision equipment 25 1 1 27
Misc. manufacturing 51 8 3 62
Trading 61 9 2 72
Department store / Super market 33 4 3 40
Various commercial 6 10 5 82
Life insurance 17 - - 17
Non-life insurance 12 - 1 13
Finance 149 9 9 167
Real estate 38 8 4 50
Transportation / Warehouse 57 10 3 70
Telecom / Advertising 35 3 1 39
Electric / Gas 14 3 - 17
Services 163 13 16 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
31 8 3 42
Total (# of Organizations) 1,200 171 79 1,450
Ratio (%) 82.8 11.8 5.4
Total (# of Organizations) 1,371 79 1,450
Ratio (%) 94.6 5.4
� No responses: 23 organizations
177
178
<Table 70> Route to instruct corrective actions on audit findings (by industry)
Unit: Number of organizations
Route
Industry
President to a
udit client
Executive in charge to
audit client
Chief A
udit Exe
cutive to
audit client
Executive in charge of
audit client to au
dit client
Departm
ent in charge to
audit client
Kansa
yaku to au
dit client
Audit C
omm
ittee to
audit client
Executive O
fficer to
audit client
Others
Total
Construction 13 2 47 3 4 - 1 - - 70
Fishing / Food 14 - 35 2 1 - - - - 52
Textile / Paper / Pulp 3 1 14 2 1 1 - - - 22
Chemical 8 5 67 5 5 1 - - - 91
Medicine 4 1 24 1 2 - - 1 - 33
Oil / Coal / Mining - - 9 1 - - - - - 10
Rubber - - 5 - - - - - - 5
Glass / Soil & Stone 1 - 11 - 1 - - - - 13
Steel 2 - 14 - - - - - - 16
Metal 8 - 20 1 2 1 - - - 32
Machine 11 4 43 8 2 - - - - 68
Electric equipment 19 4 70 8 2 - - 1 - 104
Transportation equipment 6 3 29 3 2 - - - - 43
Precision equipment 5 1 17 3 1 - - - - 27
Misc. manufacturing 13 3 43 1 2 - - - - 62
Trading 15 3 50 2 6 - - - - 76
Department store / Super market 4 4 25 5 2 - - - - 40
Various commercial 18 1 53 6 4 - - 1 1 84
Life insurance 1 - 13 1 - - - - 1 16
Non-life insurance - 2 11 - - - - - - 13
179
Route
Industry
President to a
udit client
Executive in charge to
audit client
Chief A
udit Executive to
audit client
Executive in charge of
audit client to au
dit client
Departm
ent in charge to
audit client
Kansa
yaku to au
dit client
Audit C
omm
ittee to
audit client
Executive O
fficer to
audit client
Others
Total
Finance 34 9 116 4 3 - - 1 - 167
Real estate 8 3 36 1 - - - 1 1 50
Transportation / Warehouse 9 7 47 3 5 - - - - 71
Telecom / Advertising 5 2 31 1 - - - - - 39
Electric / Gas 2 1 12 1 2 - - - - 18
Services 43 7 125 9 2 1 2 2 1 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
12 5 23 - 2 - 1 - - 43
Total (# of Organizations) 258 68 990 71 51 4 4 7 4 1,457
Ratio (%) 17.7 4.7 67.9 4.9 3.5 0.3 0.3 0.5 0.3
� No responses: 16 organizations
� Others include combination use of “from president”, “from executive in charge of audit”, “from CAE”, and “from department in charge".
180
181
<Table 71> Method to confirm the status of corrective actions on audit findings (by industry)
Unit: Number of organizations
Method
Industry
Directly
confirming
field work
place
Confirming b
y report
Both directly
confirming field
work place and
by report
Not
confirming Total
Construction 9 40 19 2 70
Fishing / Food 11 22 19 1 53
Textile / Paper / Pulp 8 9 6 - 23
Chemical 19 36 33 2 90
Medicine 6 15 12 - 33
Oil / Coal / Mining 2 4 4 - 10
Rubber 1 3 1 - 5
Glass / Soil & Stone 1 5 8 - 14
Steel 3 5 8 - 16
Metal 10 7 15 - 32
Machine 10 28 29 1 68
Electric equipment 18 41 45 1 105
Transportation equipment 11 16 14 2 43
Precision equipment 8 10 9 - 27
Misc. manufacturing 19 20 21 1 61
Trading 16 41 18 1 76
Department store / Super market 9 15 16 - 40
Various commercial 20 34 29 1 84
Life insurance 1 7 9 - 17
Non-life insurance 1 6 6 - 13
Finance 22 68 73 5 168
Real estate 16 8 25 - 49
Transportation / Warehouse 19 22 30 - 71
Telecom / Advertising 6 17 16 - 39
Electric / Gas 3 8 7 - 18
Services 36 71 82 3 192
Independent administrative institution /
Special public institution / School
corporation / Association etc.
11 17 14 1 43
Total (# of Organizations) 296 575 568 21 1,460
Ratio (%) 20.3 39.4 38.9 1.4
Total (# of Organizations) 1,439 21 1,460
Ratio (%) 98.6 1.4
� No responses: 13 organizations
182
<Table 72> Timing to confirm the status of corrective actions on audit findings (by industry)
Unit: Number of organizations
Timing
Industry
At the next
audit
Follow
-up
audit after
certain
period of time
As necessary
By report after certai
n period of time
Total
Construction 23 15 15 15 68
Fishing / Food 9 14 11 15 49
Textile / Paper / Pulp 6 12 3 2 23
Chemical 21 31 14 22 88
Medicine 3 13 8 9 33
Oil / Coal / Mining 1 4 - 5 10
Rubber 1 2 - 2 5
Glass / Soil & Stone 2 5 5 1 13
Steel 4 4 5 3 16
Metal 7 14 8 3 32
Machine 8 25 17 17 67
Electric equipment 21 38 22 21 102
Transportation equipment 7 21 7 6 41
Precision equipment 3 14 2 7 26
Misc. manufacturing 14 22 10 13 59
Trading 20 24 17 13 74
Department store / Super market 3 19 9 7 38
Various commercial 18 29 18 16 81
Life insurance 3 7 1 6 17
Non-life insurance - 5 1 7 13
Finance 20 55 18 68 161
Real estate 4 28 8 8 48
Transportation / Warehouse 17 36 5 12 70
Telecom / Advertising 4 21 5 9 39
Electric / Gas 2 7 3 6 18
Services 46 73 27 35 181
Independent administrative institution /
Special public institution / School
corporation / Association etc.
9 12 12 9 42
Total (# of Organizations) 276 550 251 337 1,414
Ratio (%) 19.5 38.9 17.8 23.8
� No responses: 25 organizations
183
<Table 73> Preparation of follow-up report (by industry)
Unit: Number of organizations
Follow-up report
Industry
Preparing Preparing
as
necessary
Not
preparing
Total
Construction 19 23 28 70
Fishing / Food 23 15 14 52
Textile / Paper / Pulp 10 6 6 22
Chemical 33 32 26 91
Medicine 12 10 11 33
Oil / Coal / Mining 8 - 2 10
Rubber 1 3 1 5
Glass / Soil & Stone 7 3 4 14
Steel 3 8 5 16
Metal 12 7 13 32
Machine 23 23 22 68
Electric equipment 44 30 31 105
Transportation equipment 26 4 13 43
Precision equipment 12 7 8 27
Misc. manufacturing 27 17 17 61
Trading 27 16 32 75
Department store / Super market 16 11 13 40
Various commercial 21 28 35 84
Life insurance 13 3 1 17
Non-life insurance 8 4 1 13
Finance 85 35 48 168
Real estate 21 16 12 49
Transportation / Warehouse 35 15 21 71
Telecom / Advertising 20 14 5 39
Electric / Gas 8 7 3 18
Services 79 46 65 190
Independent administrative institution /
Special public institution / School
corporation / Association etc.
13 13 16 42
Total (# of Organizations) 606 396 453 1,455
Ratio (%) 41.6 27.2 31.3
Total (# of Organizations) 1,002 453 1,455
Ratio (%) 68.9 31.3
� No responses: 18 organizations
184
<Table 74> Retention period of the internal audit report (by industry)
Unit: Number of organizations
Stipulated Period
Industry
Perm
anently
10�30 years
7�10 years
5�7 years
3�5 years
�3 years Others
Not stipulated
Total
Construction 3 4 20 7 9 - - 26 69
Fishing / Food 7 8 12 3 1 2 - 19 52
Textile / Paper / Pulp 2 3 9 3 1 - - 5 23
Chemical 10 8 26 8 9 - 1 28 90
Medicine 2 3 13 3 1 1 - 10 33
Oil / Coal / Mining 1 1 3 2 1 - - 2 10
Rubber 1 - 1 1 - - - 2 5
Glass / Soil & Stone 4 - 3 1 - - - 6 14
Steel 3 1 7 - - - - 5 16
Metal 2 2 5 4 7 - 1 11 31
Machine 7 6 21 7 4 - 1 22 68
Electric equipment 16 9 31 15 13 - - 19 104
Transportation equipment 4 3 17 1 5 - - 13 43
Precision equipment 7 5 6 1 3 - - 5 27
Misc. manufacturing 9 5 20 6 7 4 - 11 62
Trading 10 5 20 10 5 2 - 22 74
Department store / Super market 8 1 9 6 3 - - 13 40
Various commercial 5 2 24 6 14 1 1 27 80
Life insurance 1 1 6 4 3 1 - - 16
Non-life insurance 1 1 4 3 2 - - 1 12
Finance 18 7 45 24 41 10 - 20 165
Real estate 5 1 15 7 5 1 - 15 49
Transportation / Warehouse 19 3 15 4 5 3 - 21 70
Telecom / Advertising 3 3 8 3 9 6 - 7 39
Electric / Gas 4 1 4 1 1 - 1 6 18
Services 17 22 53 14 32 7 - 46 191 Independent administrative institution / Special public
institution / School corporation / Association etc.
4 6 9 3 4 3 - 14 43
Total (# of Organizations) 173 111 406 147 185 41 5 376 1,444
Ratio (%) 12.0 7.7 28.1 10.2 12.8 2.8 0.3 26.0
Total (# of Organizations) 1,068 376 1,444
Ratio (%).0 74.0 26.0
� No responses: 29 organizations
� Others include “5 or more years”, “5 years and 10 years”, “permanently 5 or more years”, “adequate period”,
and “indefinite period”.
185
6. Information System Audit (Tables 75 to 81)
<Table 75> Conducting information system audit (by industry)
Unit: Number of organizations
Conducting
Industry
Conducting Not
Conducting
Total
Construction 24 46 70
Fishing / Food 22 29 51
Textile / Paper / Pulp 13 11 24
Chemical 47 44 91
Medicine 15 17 32
Oil / Coal / Mining 5 5 10
Rubber 1 3 4
Glass / Soil & Stone 5 9 14
Steel 5 11 16
Metal 17 14 31
Machine 30 38 68
Electric equipment 62 42 104
Transportation equipment 25 18 43
Precision equipment 18 9 27
Misc. manufacturing 26 35 61
Trading 37 38 75
Department store / Super market 14 25 39
Various commercial 36 48 84
Life insurance 14 2 16
Non-life insurance 13 - 13
Finance 119 45 164
Real estate 18 32 50
Transportation / Warehouse 27 41 68
Telecom / Advertising 18 20 38
Electric / Gas 10 8 18
Services 101 89 190
Independent administrative institution /
Special public institution / School
corporation / Association etc.
19 23 42
Total (# of Organizations) 741 702 1,443
Ratio (%) 51.4 48.6
� No responses: 30 organizations
186
<Table 76> Entity to conducting information system audit (by industry)
Unit: Number of organizations
Entity
Industry
Internal Audit A
ctivity (IAA
)
Together with IA
A and
Information S
ystem
department
C-sourcing w
ith IAA
and
third-party vendor
Outsourcing to third-party vendor
Information S
ystem departm
ent
Together with Inform
ation
System
department and
third-party vendor
Others
Total
Construction 14 2 - 1 6 - 1 24
Fishing / Food 15 1 2 1 - - - 19
Textile / Paper / Pulp 5 3 1 2 2 - - 13
Chemical 28 4 - 6 4 1 1 44
Medicine 9 - 2 1 2 1 - 15
Oil / Coal / Mining 1 1 - - 2 1 - 5
Rubber - - - - 1 - - 1
Glass / Soil & Stone 3 1 1 - - - - 5
Steel 2 1 - - 2 - - 5
Metal 14 2 - - 1 - - 17
Machine 15 8 - 4 1 1 - 29
Electric equipment 29 15 2 3 11 1 - 61
Transportation equipment 14 3 3 3 - 1 - 24
Precision equipment 11 2 2 - 1 1 1 18
Misc. manufacturing 19 - 1 5 1 - - 26
Trading 21 3 3 4 3 2 1 37
Department store / Super market 6 2 - 3 - 1 - 12
Various commercial 19 5 1 6 2 1 - 34
Life insurance 9 1 4 - - - - 14
Non-life insurance 9 - 3 1 - - - 13
Finance 69 8 21 14 1 - 4 117
Real estate 8 3 1 4 1 - 1 18
Transportation / Warehouse 11 5 5 3 1 1 - 26
Telecom / Advertising 10 3 2 2 1 - - 18
Electric / Gas 7 - - - 2 1 - 10
Services 59 11 10 8 5 3 2 98
Independent administrative institution / Special public
institution / School corporation / Association etc.
9 3 - 6 1 - - 19
Total (# of Organizations) 416 87 64 77 51 16 11 722
Ratio (%) 57.5 12.0 8.9 10.7 7.1 2.2 1.5
� No responses: 19 organizations
� Others include “separately by the IAA and third-party vendor”, “parent company”, “ISO quality assurance
department”, “security audit committee”, “became a member of the Regional Bank Integrated Services
Center”, “executive who is knowledgeable about information system”, etc.
<Table 77> Staffing of information system auditors in the IAA (by industry)
187
Unit: Number of organizations
IS Auditor
Industry
Allocated Not
Allocated
Total
Construction 3 12 15
Fishing / Food 1 15 16
Textile / Paper / Pulp 1 5 6
Chemical 2 28 30
Medicine 5 4 9
Oil / Coal / Mining - 2 2
Rubber - - -
Glass / Soil & Stone - 3 3
Steel - 2 2
Metal 1 13 14
Machine 3 13 16
Electric equipment 15 19 34
Transportation equipment 4 13 17
Precision equipment 2 12 14
Misc. manufacturing 3 17 20
Trading 5 17 22
Department store / Super market 1 7 8
Various commercial 6 15 21
Life insurance 8 4 12
Non-life insurance 5 5 10
Finance 48 39 87
Real estate 1 7 8
Transportation / Warehouse 4 10 14
Telecom / Advertising 7 6 13
Electric / Gas 3 4 7
Services 30 40 70
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 8 9
Total (# of Organizations) 159 320 479
Ratio (%) 33.2 66.8
� No responses: 88 organizations
188
<Table 78> Alternative method if there is no information system auditor in the IAA (by industry)
Unit: Number of organizations
Alternative method
Industry
Limit audit scope
and conduct
possible audit only
Review
self-assessment by
Information S
ystem depa
rtment
Ask support to
Information S
ystem depa
rtment
Ask support to
third-party
Total
Construction 9 1 2 - 12
Fishing / Food 11 - 4 15
Textile / Paper / Pulp 4 - 1 - 5
Chemical 16 7 5 - 28
Medicine 3 - - - 3
Oil / Coal / Mining 2 - - - 2
Rubber - - - - -
Glass / Soil & Stone 3 - - - 3
Steel 2 - - - 2
Metal 10 - 2 - 12
Machine 8 3 1 - 12
Electric equipment 13 2 4 - 19
Transportation equipment 10 - 1 2 13
Precision equipment 8 - 3 - 11
Misc. manufacturing 15 - 2 - 17
Trading 12 - 4 1 17
Department store / Super market 3 - 3 1 7
Various commercial 10 1 4 - 15
Life insurance 1 - 1 2 4
Non-life insurance 3 - - 2 5
Finance 26 - 5 8 39
Real estate 7 - - - 7
Transportation / Warehouse 7 3 - - 10
Telecom / Advertising 4 1 1 - 6
Electric / Gas 3 1 - - 4
Services 25 2 11 2 40
Independent administrative institution /
Special public institution / School
corporation / Association etc.
5 1 1 1 8
Total (# of Organizations) 220 22 55 19 316
Ratio (%) 69.6 7.0 17.4 6.0
� No responses: 4 organizations
189
<Table 79> Approach of information system audit (by industry)
Unit: Number of organizations
Approach
Industry
Information Sys
tem Audit only
As a part of op
erational
audit
Both
Information Sys
tem Audit and
as a
part of
operational
audit
Total
Construction 3 7 4 14
Fishing / Food 1 13 2 16
Textile / Paper / Pulp - 4 2 6
Chemical 3 20 6 29
Medicine - 7 2 9
Oil / Coal / Mining - 1 1 2
Rubber - - - -
Glass / Soil & Stone - 2 1 3
Steel - 2 1 3
Metal 3 9 12
Machine 4 11 2 17
Electric equipment 9 17 9 35
Transportation equipment 2 5 10 17
Precision equipment 1 9 4 14
Misc. manufacturing 2 16 2 20
Trading 1 17 4 22
Department store / Super market 1 4 2 7
Various commercial 6 11 3 20
Life insurance 4 2 5 11
Non-life insurance 3 2 4 9
Finance 15 30 39 84
Real estate - 7 1 8
Transportation / Warehouse 2 6 6 14
Telecom / Advertising 2 6 4 12
Electric / Gas 1 1 5 7
Services 11 34 19 64
Independent administrative institution /
Special public institution / School
corporation / Association etc.
2 5 2 9
Total (# of Organizations) 76 248 140 464
Ratio (%) 16.4 53.4 30.2
� No responses: 103 organizations
190
<Table 80> Development of information system audit checklist (by industry)
Unit: Number of organizations
Timing of development
Industry
Developed a
standard
checklist
Developing for
each
engagement
Not develop a
checklist Total
Construction 9 4 2 15
Fishing / Food 5 7 4 16
Textile / Paper / Pulp 2 2 2 6
Chemical 7 14 8 29
Medicine 1 7 1 9
Oil / Coal / Mining - 2 - 2
Rubber - - - -
Glass / Soil & Stone - 3 - 3
Steel 1 - 2 3
Metal 1 8 4 13
Machine 2 8 6 16
Electric equipment 15 15 4 34
Transportation equipment 7 6 2 15
Precision equipment 7 6 1 14
Misc. manufacturing 6 11 3 20
Trading 4 11 7 22
Department store / Super market 1 1 5 7
Various commercial 5 10 4 19
Life insurance 4 7 1 12
Non-life insurance 4 4 - 8
Finance 45 32 6 83
Real estate 4 4 - 8
Transportation / Warehouse 5 7 2 14
Telecom / Advertising 6 4 1 11
Electric / Gas 1 5 1 7
Services 24 32 8 64
Independent administrative institution /
Special public institution / School
corporation / Association etc.
3 4 2 9
Total (# of Organizations) 169 214 76 459
Ratio (%) 36.8 46.6 16.6
Total (# of Organizations) 383 76 459
Ratio (%) 83.4 16.6
� No responses: 108 organizations
191
192
<Table 81> Areas of information system audit (by industry)
Unit: Number of organizations
Areas
Industry
Con
form
ity of in
formation
system strateg
y
with
organization
al policy
Org
anization
/ structure o
f Info
rmation
System
depa
rtmen
t
System
plannin
g / d
esignin
g / d
evelopment
managem
ent
Inpu
t control
Do
cum
entation contro
l
Mainten
ance o
f equip
men
t
Con
tingency plan
ning
Outp
ut contro
l
On
-line system
control
Co
mpu
ter usage of ea
ch d
epartm
ent
Utilization
of o
utput data
Exp
ense man
agem
ent of In
form
ation
System
depa
rtmen
t
End
-user co
mp
uting m
anage
men
t
Netw
ork m
anagem
ent
Ou
tsou
rcing
Individu
al application
system
Info
rmation
security m
anagem
ent (virus /
privacy in
form
ation)
Total
Construction 13 11 6 7 3 12 9 5 4 9 2 5 5 14 5 3 20 133
Fishing / Food 7 11 5 1 3 16 12 1 5 5 3 4 4 11 8 1 13 110
Textile / Paper / Pulp 8 8 10 5 5 6 8 4 5 1 2 2 1 9 3 3 9 89
Chemical 23 30 23 8 11 24 24 9 17 13 6 18 7 30 20 6 30 299
Medicine 9 8 8 6 7 9 10 5 3 4 1 2 3 8 4 6 12 105 Oil / Coal / Mining 2 3 2 3 3 2 2 2 2 2 1 1 1 4 3 2 4 39
Rubber - - - - - - - - - - - - - - - - - -
Glass / Soil & Stone 3 4 1 1 1 3 3 1 1 - - 1 - 1 - - 3 23
Steel 3 3 3 1 - 1 2 - - 1 - 3 1 1 1 1 3 24
Metal 12 13 9 2 2 9 8 2 2 2 1 5 1 8 1 4 8 89 Machine 16 18 14 13 10 20 19 13 12 1 2 7 8 21 9 8 28 219
Electric equipment 35 35 36 20 24 42 46 16 23 18 9 13 11 44 29 17 51 469
Transportation equipment 13 14 13 6 7 14 20 8 6 4 1 4 4 17 9 6 20 166
Precision equipment 10 11 9 6 7 15 12 5 5 5 1 6 3 12 7 1 15 130
Misc. manufacturing 15 15 14 8 9 17 18 4 4 4 5 4 19 6 4 21 167
Trading 15 13 21 19 12 21 21 11 10 9 3 7 2 19 13 7 26 229 Department store / Super market 3 3 2 5 4 6 7 5 2 1 1 - 3 6 5 2 7 62
193
Areas
Industry
Con
form
ity of in
form
ation system
strategy
with o
rganization
al policy
Org
anization
/ structure o
f Info
rmation
Syste
m d
epartm
ent
System
plannin
g / design
ing
/ developm
ent
manage
men
t
Inpu
t control
Do
cum
entation
control
Mainten
ance
of equip
ment
Con
tingency plannin
g
Ou
tput con
trol
On
-line system
control
Co
mpu
ter usage o
f each
dep
artmen
t
Utilization
of ou
tput data
Exp
ense man
agem
ent o
f Info
rmation
Syste
m d
epartm
ent
End
-user co
mp
uting m
anagem
ent
Netw
ork m
anagem
ent
Ou
tsou
rcing
Individu
al application
system
Info
rmation
security m
anagem
ent (virus /
privacy in
form
ation)
Total
Various commercial 17 20 15 13 15 22 18 12 7 4 5 8 7 20 13 3 20 219
Life insurance 10 10 13 9 10 6 13 8 9 4 2 7 6 9 12 4 11 143
Non-life insurance 7 10 9 4 8 8 10 5 6 2 1 3 7 9 9 4 8 110
Finance 64 86 80 51 60 92 94 45 55 46 14 26 51 73 78 38 100 1,053
Real estate 7 9 7 5 5 9 7 5 4 6 3 1 3 8 3 1 12 95
Transportation / Warehouse 12 15 11 9 10 15 14 10 8 7 1 5 6 17 10 4 17 171
Telecom / Advertising 7 10 10 4 10 13 12 4 5 8 3 5 7 13 8 4 14 137
Electric / Gas 4 5 7 2 2 4 6 2 2 2 3 4 3 6 5 3 7 67
Services 42 50 41 26 27 59 54 26 24 26 8 15 20 60 41 17 77 613 Independent administrative
institution / Special public
institution / School corporation /
Association etc.
6 9 9 6 7 9 9 5 3 7 2 4 5 12 9 - 16 118
Total (# of Organizations) 363 424 378 240 262 454 458 213 224 191 75 161 173 451 311 149 552 5,079
Ratio (%) 51.6 60.2 53.7 34.1 37.2 64.5 65.1 30.3 31.8 27.1 10.7 22.9 24.6 64.1 44.2 21.2 78.4
� No responses: 37 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (704 organizations)
* 100
194
195
7. Audit of Subsidiary companies and Affiliated companies (Tables 82 to 89)
<Table 82> Conducting audits of subsidiaries / affiliates (by industry)
Unit: Number of organizations
Conducting Subsidiaries / affiliates audits
Industry Domestic o
nly
Overseas on
ly
Both
domestic an
d
overseas
Not
conducting Total
Construction 39 - 16 14 69
Fishing / Food 21 - 21 10 52
Textile / Paper / Pulp 9 - 9 6 24
Chemical 30 4 43 15 92
Medicine 15 1 7 9 32
Oil / Coal / Mining 2 - 5 3 10
Rubber 1 - 3 1 5
Glass / Soil & Stone 7 2 5 - 14
Steel 5 - 8 3 16
Metal 7 2 15 7 31
Machine 24 5 31 8 68
Electric equipment 17 2 66 18 103
Transportation equipment 10 3 22 7 42
Precision equipment 2 5 16 4 27
Misc. manufacturing 20 5 21 15 61
Trading 22 4 28 19 73
Department store / Super market 24 - 2 13 39
Various commercial 44 - 10 27 81
Life insurance 5 1 4 7 17
Non-life insurance 4 - 7 2 13
Finance 78 1 17 52 148
Real estate 29 - 5 14 48
Transportation / Warehouse 34 4 22 11 71
Telecom / Advertising 22 - 9 6 37
Electric / Gas 10 - 3 5 18
Services 79 4 25 76 184
Independent administrative institution /
Special public institution / School
corporation / Association etc.
10 - - 30 40
Total (# of Organizations) 570 43 420 382 1,415
Ratio (%) 40.3 3.0 29.7 27.0
Total (# of Organizations) 1,033 382 1,415
Ratio (%) 73.0 27.0
� No responses: 58 organizations
196
<Table 83> Criteria to audit domestic subsidiaries / affiliates (by industry)
Unit: Number of organizations
Criteria
Industry
Wholly-ow
ned company
Majority-ow
ned company
Sending E
xecutives
Investing company
Manufacture of com
pany’s
product / parts
Sales com
pany
All subsidiaries and affiliates
Consolidated com
pany
No internal audit com
pany
Others
Total
Construction 23 15 2 - - 2 17 17 5 - 81
Fishing / Food 11 9 2 1 2 1 11 15 3 1 56
Textile / Paper / Pulp 5 3 1 - - - 6 8 2 - 25
Chemical 35 27 5 - 6 4 13 31 8 - 129
Medicine 10 6 2 - - - 6 5 - 1 30
Oil / Coal / Mining 2 4 - - - - 2 2 - 2 12
Rubber 1 - - - - - - 2 - - 3
Glass / Soil & Stone 5 3 2 - - - 1 6 - - 17
Steel 4 5 1 - - - 5 4 - - 19
Metal 11 10 3 - 2 1 7 9 2 - 45
Machine 27 12 2 - 2 1 10 18 5 1 78
Electric equipment 41 20 6 1 7 7 15 30 9 1 137
Transportation equipment 14 7 3 - 1 1 10 15 1 - 52
Precision equipment 8 2 - - - - 3 8 3 - 24
Misc. manufacturing 17 10 2 - 1 1 15 12 4 - 62
Trading 24 15 6 1 2 2 11 18 7 - 86
Department store / Super market 17 6 3 - - - 3 6 3 - 38
Various commercial 32 13 5 - 2 10 17 10 - 89
Life insurance 1 - - - - - 7 2 2 - 12
Non-life insurance 4 2 1 1 - - 5 1 1 - 15
Finance 40 12 3 - - - 23 42 6 2 128
Real estate 16 5 5 1 - - 9 14 6 1 57
Transportation / Warehouse 23 19 7 - - - 17 12 10 2 90
Telecom / Advertising 17 7 1 - - 1 5 11 3 2 47
Electric / Gas 4 4 1 - - - 3 6 - - 18
Services 61 25 4 1 2 - 25 38 14 - 170 Independent administrative institution / Special public
institution / School corporation / Association etc.
3 1 1 - - - 3 2 - - 10
Total (# of Organizations) 456 242 68 6 27 21 242 351 104 13 1,530
Ratio (%) 49.4 26.2 7.4 0.7 2.9 2.3 26.2 38.0 11.3 1.4
� No responses: 67 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (923 organizations) * 100
� Others include “materiality”, “specified by contract”, “equity method affiliate”, “high risk company”, etc.
197
<Table 84> Criteria to audit overseas subsidiaries / affiliates (by industry)
Unit: Number of organizations
Criteria
Industry
Wholly-ow
ned company
Majority-ow
ned company
Sending E
xecutives
Investing company
Manufacture of com
pany’s
product / parts
Sales com
pany
All subsidiaries and affiliates
Consolidated group
No internal audit com
pany
Others
Total
Construction 4 1 2 - - - 7 3 1 - 18
Fishing / Food 3 7 1 - 1 1 4 7 1 1 26
Textile / Paper / Pulp 4 - - 1 - - 2 4 1 - 12
Chemical 16 13 6 - 3 - 7 21 3 2 71
Medicine 3 2 - - - 1 2 - 1 9
Oil / Coal / Mining 1 2 - - 1 - 2 1 - - 7
Rubber 1 - - - - 2 - - 3
Glass / Soil & Stone 2 3 - - 1 - 1 1 - - 8
Steel 1 3 1 - - 2 4 - - 11
Metal 7 8 1 - 2 - 4 5 - 1 28
Machine 14 12 1 - 2 3 7 14 1 1 55
Electric equipment 27 16 4 1 8 7 15 24 6 - 108
Transportation equipment 9 6 3 1 1 - 8 13 - - 41
Precision equipment 10 5 - 1 1 3 8 3 1 32
Misc. manufacturing 12 6 3 - 2 - 3 7 1 - 34
Trading 13 12 5 1 1 1 7 8 3 - 51
Department store / Super market - - 1 - - - - 1 - - 2
Various commercial 4 1 - - - - 2 4 - - 11
Life insurance 2 - - - - 3 1 1 - 7
Non-life insurance 2 2 1 1 - - 1 2 1 1 11
Finance 5 4 - - - - 4 5 1 2 21
Real estate - - - - - - 1 3 1 5
Transportation / Warehouse 6 7 4 - - - 6 7 1 2 33
Telecom / Advertising 5 3 1 - - - 1 6 1 1 18
Electric / Gas 2 1 - - - - - - - 1 4
Services 16 3 1 1 1 - 9 11 5 - 47 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - - - - - - - - -
Total (# of Organizations) 169 117 35 6 24 13 100 164 31 14 673
Ratio (%) 40.7 28.2 8.4 1.4 5.8 3.1 24.1 39.5 7.5 3.4
� No responses: 48 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (415 organizations) * 100
� Others include “materiality”, “corporate group rule”, “outsourcing company”, “high risk company”, etc.
198
<Table 85> Priority area of subsidiaries / affiliates audit (by industry)
Unit: Number of organizations
Area
Industry
Pro
fitability as a g
roup
Investm
ent effect
Safegu
ard o
f receivables
Re
liability o
f finan
cial
statements
Op
erational im
provemen
t
Sales resu
lts
Intern
al contro
ls
Hea
lth and safety
Qu
ality con
trol
Enviro
nm
ent manag
ement
Tra
nsaction w
ith parent
com
pany
Secu
rity / fire-protection
Invento
ry manage
ment
Risk m
anagem
ent
Co
mp
liance
Ad
equa
cy of m
anagem
ent
Overall op
eration
Oth
ers
Total
Construction 25 3 27 32 36 11 41 9 6 5 14 5 12 26 45 11 26 - 334
Fishing / Food 14 4 19 14 24 10 31 28 24 15 8 15 28 24 33 9 28 - 328
Textile / Paper / Pulp 7 3 8 9 8 2 13 8 3 6 3 7 11 9 14 2 9 - 122
Chemical 29 9 39 36 43 17 66 31 23 18 21 21 41 39 62 16 43 2 556
Medicine 6 - 5 5 11 3 19 6 2 1 5 6 5 11 19 2 14 - 120
Oil / Coal / Mining 2 2 5 4 5 2 5 4 3 3 4 4 4 5 7 4 5 - 68 Rubber 1 1 3 1 4 - 4 2 1 1 1 1 3 2 2 1 1 - 29
Glass / Soil & Stone 3 - 9 6 11 2 14 5 1 3 4 2 5 6 12 5 7 - 95
Steel 4 - 7 6 8 - 9 6 4 6 1 3 6 6 13 3 3 - 85
Metal 7 1 10 7 14 3 15 5 6 3 3 4 9 10 17 1 14 - 129
Machine 22 1 29 27 34 9 44 16 10 14 11 10 26 26 39 8 32 - 358 Electric equipment 37 6 40 41 44 13 73 26 23 14 27 18 51 39 62 29 60 1 604
Transportation equipment 15 2 12 14 14 6 28 14 8 9 11 8 12 18 23 10 19 - 223
Precision equipment 6 2 6 7 12 4 15 9 6 6 4 6 13 7 17 3 13 - 136
Misc. manufacturing 11 4 19 16 29 11 35 18 12 14 13 13 23 22 27 6 27 3 303
Trading 26 7 34 26 34 12 41 23 11 11 16 19 39 27 37 15 35 - 413 Department store / Super market 5 1 6 9 14 4 15 11 7 3 1 8 8 10 25 5 6 1 139
Various commercial 18 5 23 19 36 9 31 23 11 11 12 16 32 20 39 10 38 1 354
Life insurance 2 1 2 - 4 - 9 1 - - 1 - 1 6 8 - 5 - 40
Non-life insurance 1 1 1 3 6 1 9 4 3 1 3 1 - 5 9 5 7 - 60
199
Area
Industry
Pro
fitability as a g
roup
Investm
ent effect
Safegu
ard o
f receivables
Reliab
ility of fin
ancial
statements
Op
erational im
provem
ent
Sales resu
lts
Intern
al contro
ls
Health an
d safety
Qua
lity control
Enviro
nm
ent m
anag
ement
Tra
nsaction w
ith parent
com
pany
Secu
rity / fire-protection
Inve
ntory m
anagem
ent
Risk m
anagem
ent
Co
mp
liance
Ad
equacy o
f man
agemen
t
Ove
rall operation
Othe
rs
Total
Finance 15 4 23 35 48 11 74 14 9 7 21 19 10 61 91 21 65 - 528
Real estate 11 1 14 10 21 8 28 8 5 3 4 8 7 22 26 6 21 - 203
Transportation / Warehouse 17 4 22 27 34 9 46 26 15 12 15 14 14 33 54 13 35 - 390
Telecom / Advertising 11 5 10 13 19 8 26 6 - 1 10 4 7 22 23 10 23 - 198
Electric / Gas 2 2 4 4 4 1 9 3 3 2 4 2 3 7 10 4 3 - 67 Services 31 6 23 46 66 16 82 20 18 14 22 17 28 45 81 26 68 1 610
Independent administrative
institution / Special public
institution / School corporation /
Association etc.
2 - 1 4 8 1 8 4 3 - - 3 3 5 9 2 7 - 60
Total (# of Organizations) 330 75 401 421 591 173 790 330 217 183 239 234 401 513 804 227 614 9 6,552 Ratio (%) 32.2 7.3 39.1 41.0 57.6 16.9 77.0 32.2 21.2 17.8 23.3 22.8 39.1 50.0 70.8 22.1 59.8 0.9
� No responses: 7 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (1,026
organizations) * 100
� Others include “cash and securities”, “purchasing”, “human resource management”, “transfer pricing”, “information management”, etc.
200
201
<Table 86> Who requested audit of subsidiaries / affiliates? (by industry)
Unit: Number of organizations
Who requested?
Industry
President
President of subsidiary / affiliate
Executive in charge of A
udit
Kansayaku or
Audit C
omm
ittee
Kansayaku of subsidiary / affiliate
Subsidiary / A
ffiliate managem
ent
department
Based on Internal A
udit plan
Others
Total
Construction 16 - 3 2 - 28 1 4 54
Fishing / Food 9 - - - - 31 - 1 41
Textile / Paper / Pulp 3 - 1 - - 14 - - 18
Chemical 21 2 1 3 - 48 - 1 76
Medicine 3 - 1 - - 18 - - 22
Oil / Coal / Mining 4 - - 1 - 2 - - 7
Rubber 1 - - - - 2 - - 3
Glass / Soil & Stone 5 - - 1 1 7 - - 14
Steel 5 - - - - 8 - - 13
Metal 7 - 2 2 - 13 - - 24
Machine 17 1 2 2 1 33 - 3 59
Electric equipment 19 - 3 2 - 55 1 2 82
Transportation equipment 6 1 1 - 2 25 - - 35
Precision equipment 7 - 1 - - 13 - 1 22
Misc. manufacturing 17 - 3 1 - 23 - - 44
Trading 19 1 2 2 2 27 1 - 54
Department store / Super market 4 2 1 2 1 16 - - 26
Various commercial 17 2 1 2 1 30 - - 53
Life insurance 2 1 - - - 7 - - 10
Non-life insurance - - - - - 10 - 1 11
Finance 25 2 3 1 3 54 1 9 98
Real estate 11 - - - - 23 - - 34
Transportation / Warehouse 19 - 3 - - 35 - 1 58
Telecom / Advertising 9 - - - - 20 - 2 31
Electric / Gas 5 - - - - 7 - 1 13
Services 43 4 3 - 2 53 - 1 106 Independent administrative institution / Special public
institution / School corporation / Association etc.
3 1 1 - - 5 - - 10
Total (# of Organizations) 297 17 32 21 13 607 4 27 1,018
Ratio (%) 29.2 1.7 3.1 2.1 1.3 59.6 0.4 2.7
� No responses: 15 organizations
� Others include “based on internal audit charter”, “instruction from parent company”, “intention of external
auditor”, “agreement (including contract)”, group internal audit committee”, “as a part of risk management
activities”, “discussion with department in charge of subsidiary / affiliate companies”, “approval of
management committee”, and “embedded in periodical audit entities”.
<Table 87> Timing of reporting of subsidiaries / affiliates audits (by industry)
Unit: Number of organizations
202
Timing
Industry
After each
engagement
At the end of
fiscal year
Not consistent
- D
epends on
audit univers
e
Periodically
(Quarterly,
Sem
i-annually, et
c)
Total
Construction 47 1 2 5 55
Fishing / Food 34 - - 8 42
Textile / Paper / Pulp 15 - 2 1 18
Chemical 63 2 3 9 77
Medicine 19 - 1 2 22
Oil / Coal / Mining 6 - 1 - 7
Rubber 4 - - - 4
Glass / Soil & Stone 13 - 1 - 14
Steel 11 1 - 1 13
Metal 22 - 1 1 24
Machine 48 1 3 8 60
Electric equipment 76 1 5 2 84
Transportation equipment 31 1 1 2 35
Precision equipment 22 - - 1 23
Misc. manufacturing 40 - 1 4 45
Trading 47 1 - 4 52
Department store / Super market 19 1 2 4 26
Various commercial 43 1 5 4 53
Life insurance 9 - - 1 10
Non-life insurance 9 - 1 1 11
Finance 88 3 - 5 96
Real estate 28 1 - 5 34
Transportation / Warehouse 47 - 3 9 59
Telecom / Advertising 29 1 - 1 31
Electric / Gas 8 1 1 3 13
Services 93 4 3 4 104
Independent administrative institution /
Special public institution / School
corporation / Association etc.
7 1 1 1 10
Total (# of Organizations) 878 21 37 86 1,022
Ratio (%) 85.9 2.1 3.6 8.4
� No responses: 11 organizations
203
<Table 88> Distribution of audit report of subsidiaries / affiliates (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
President of subsidiary / affiliate
Executive in charge of Internal
Audit
Kansayaku or A
udit Com
mittee
Subsidiary / A
ffiliate
managem
ent department
Others
Total
Construction 45 1 8 18 12 14 4 2 104
Fishing / Food 38 8 5 13 10 12 7 1 94
Textile / Paper / Pulp 15 1 1 8 5 4 6 40
Chemical 67 9 7 36 15 20 16 2 172
Medicine 16 3 5 10 4 6 4 1 49
Oil / Coal / Mining 6 - 1 1 2 3 1 1 15
Rubber 4 1 - 3 - 1 - - 9
Glass / Soil & Stone 11 - - 8 2 2 4 - 27
Steel 12 - 1 8 2 3 2 - 28
Metal 21 1 6 6 7 7 3 3 54
Machine 50 8 1 23 14 16 11 - 123
Electric equipment 69 9 6 56 15 23 15 2 195
Transportation equipment 25 3 4 23 12 16 11 - 94
Precision equipment 22 - - 8 1 5 2 - 38
Misc. manufacturing 37 6 2 22 8 15 7 2 99
Trading 52 4 4 20 12 18 12 2 124
Department store / Super market 22 3 1 15 7 7 8 - 63
Various commercial 43 8 3 14 7 13 8 2 98
Life insurance 5 3 - 6 3 2 2 - 21
Non-life insurance 2 4 6 5 3 1 2 - 23
Finance 68 30 23 43 29 32 21 4 250
Real estate 30 3 2 8 2 10 7 - 62
Transportation / Warehouse 47 8 7 26 16 19 9 3 135
Telecom / Advertising 24 - 4 12 7 10 2 3 62
Electric / Gas 9 - 5 5 2 3 1 - 25
Services 90 8 8 56 14 28 18 2 224 Independent administrative institution / Special public
institution / School corporation / Association etc.
6 2 1 4 2 2 1 - 18
Total (# of Organizations) 836 123 111 457 213 292 184 30 2,246
Ratio (%) 82.2 12.1 10.9 44.9 20.9 28.7 18.1 2.9
� No responses: 16 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,017 organizations) * 100
� Others include “executives”, “executive in charge of subsidiary / affiliate”, “parent company”, “kansayaku
of subsidiaris / affiliates”, “head of administration”, etc.
204
<Table 89> Distribution of copy of report of subsidiaries / affiliates audit (by industry)
Unit: Number of organizations
Distribution to
Industry
President
Board
Executive C
omm
ittee
President of subsidiary / affiliate
Executive in charge of Internal
Audit
Kansayaku or A
udit Com
mittee
Subsidiary / A
ffiliate
managem
ent department
Head of all related departm
ents
Others
Total
Construction 17 4 6 33 9 30 18 6 1 124
Fishing / Food 9 9 5 21 4 21 24 15 1 109
Textile / Paper / Pulp 3 - - 11 2 8 9 6 - 39
Chemical 10 5 2 39 11 37 31 16 3 154
Medicine 3 2 2 9 3 9 6 1 - 35
Oil / Coal / Mining 1 - 2 5 - 4 5 1 - 18
Rubber 1 - - 1 1 3 1 1 - 8
Glass / Soil & Stone 2 - - 5 3 9 7 3 1 30
Steel - - - 5 3 8 7 4 - 27
Metal 5 4 1 13 1 10 4 1 4 43
Machine 13 7 - 31 9 30 27 13 2 132
Electric equipment 20 5 5 38 11 39 33 16 5 172
Transportation equipment 9 2 3 19 4 20 13 7 3 80
Precision equipment 1 3 1 13 5 13 3 1 4 44
Misc. manufacturing 8 7 20 11 16 18 7 3 90
Trading 13 3 2 27 6 25 18 15 5 114
Department store / Super market 6 3 1 12 11 14 8 5 - 60
Various commercial 13 11 3 26 4 27 22 10 6 122
Life insurance 3 2 1 2 2 3 4 2 2 21
Non-life insurance 1 1 - 3 3 4 7 4 - 23
Finance 24 16 11 50 18 28 28 19 1 195
Real estate 7 1 2 18 4 12 7 6 2 59
Transportation / Warehouse 13 7 5 25 10 24 19 10 1 114
Telecom / Advertising 5 1 4 14 3 10 11 5 1 54
Electric / Gas 2 - 3 5 1 6 6 2 1 26
Services 31 14 7 53 12 57 37 15 8 234 Independent administrative institution / Special public
institution / School corporation / Association etc.
4 1 2 4 2 2 1 - - 16
Total (# of Organizations) 224 108 68 502 153 469 374 191 54 2,143
Ratio (%) 24.3 11.7 7.4 54.4 16.6 50.8 40.5 20.7 5.9
� No responses: 110 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (923 organizations) * 100
� Others include “based on instruction of president”, “executives”, “head of administration”, “external
auditor”, “audit client”, “kansayaku of subsidiary”, “parent company”, “accounting department”, etc.
9. Environment Audit (Tables 90 to 96)
205
<Table 90> Conducting environment audit (by industry)
Unit: Number of organizations
Environment audit
Industry
Conducting Not
Conducting
Total
Construction 43 27 70
Fishing / Food 35 18 53
Textile / Paper / Pulp 11 13 24
Chemical 70 22 92
Medicine 24 9 33
Oil / Coal / Mining 8 2 10
Rubber 4 1 5
Glass / Soil & Stone 10 4 14
Steel 12 5 17
Metal 23 9 32
Machine 47 22 69
Electric equipment 89 16 105
Transportation equipment 38 6 44
Precision equipment 24 3 27
Misc. manufacturing 37 25 62
Trading 49 26 75
Department store / Super market 21 19 40
Various commercial 32 51 83
Life insurance 2 15 17
Non-life insurance 3 10 13
Finance 22 140 162
Real estate 10 40 50
Transportation / Warehouse 36 35 71
Telecom / Advertising 18 21 39
Electric / Gas 13 5 18
Services 66 124 190
Independent administrative institution /
Special public institution / School
corporation / Association etc.
18 24 42
Total (# of Organizations) 765 692 1,457
Ratio (%) 52.5 47.5
� No responses: 16 organizations
206
<Table 91> Who conducted environment audit? (by industry)
Unit: Number of organizations
Who
Industry IAA
General A
ffairs
Quality C
ontrol
Departm
ent in charge of
environment
Together with IA
A and
department in charge of
environment
Outsourcing
Others
Total
Construction 6 1 18 11 2 2 2 42
Fishing / Food 11 2 2 12 6 - 3 36
Textile / Paper / Pulp 1 2 2 4 1 1 - 11
Chemical 9 1 20 33 1 3 1 68
Medicine 4 3 1 14 - 2 - 24
Oil / Coal / Mining 1 - 1 4 1 - - 7
Rubber 1 - 1 2 - - - 4
Glass / Soil & Stone 3 - 1 6 - - - 10
Steel 3 - 1 6 2 - - 12
Metal 6 1 3 8 2 - 2 22
Machine 5 5 11 21 2 - 3 47
Electric equipment 9 4 20 48 6 2 - 89
Transportation equipment 2 5 3 22 2 4 - 38
Precision equipment 5 3 2 12 1 - 1 24
Misc. manufacturing 9 2 6 14 4 - 1 36
Trading 4 9 9 16 5 2 3 48
Department store / Super market 1 4 - 9 6 - 1 21
Various commercial 10 3 4 7 6 - 1 31
Life insurance - 1 - - - - 1 2
Non-life insurance - - - 3 - - - 3
Finance 10 3 - 5 1 1 1 21
Real estate 5 - - 4 1 - - 10
Transportation / Warehouse 8 3 8 13 2 1 - 35
Telecom / Advertising 3 7 1 4 1 - 2 18
Electric / Gas 4 1 1 4 1 1 1 13
Services 25 9 10 11 6 1 4 66 Independent administrative institution / Special public
institution / School corporation / Association etc.
6 2 1 3 2 - 4 18
Total (# of Organizations) 151 71 126 296 61 20 31 756
Ratio (%) 20.0 9.4 16.7 39.2 8.1 2.6 4.1
� No responses: 9 organizations
� Others include “ISO auditor”, “environment audit team”, “temporary function”, “self-assessment by each
office”, “parent company”, etc.
207
<Table 92> Staffing of environment auditors in the IAA (by industry)
Unit: Number of organizations
Environment auditor
Industry
Allocating Not
Allocating
Total
Construction - 5 5
Fishing / Food 3 9 12
Textile / Paper / Pulp 1 - 1
Chemical 2 7 9
Medicine 1 3 4
Oil / Coal / Mining - 1 1
Rubber - 1 1
Glass / Soil & Stone 1 2 3
Steel 1 2 3
Metal 2 5 7
Machine 3 2 5
Electric equipment 6 4 10
Transportation equipment 1 1 2
Precision equipment 1 4 5
Misc. manufacturing 1 8 9
Trading 2 5 7
Department store / Super market 1 1 2
Various commercial 1 10 11
Life insurance - - -
Non-life insurance - - -
Finance 1 9 10
Real estate - 5 5
Transportation / Warehouse - 7 7
Telecom / Advertising 2 2 4
Electric / Gas - 4 4
Services 8 19 27
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 5 6
Total (# of Organizations) 39 121 160
Ratio (%) 24.4 75.6
� No responses: 52 organizations
208
<Table 93> Alternative method if there is no environment auditor in the IAA (by industry)
Unit: Number of organizations
Alternative method
Industry
Limit audit scope and co
nduct
possible audit only
Ask support to
third-party
Ask support to
Departm
ent in
charge of
environment
Total
Construction 3 - 2 5
Fishing / Food 8 - 1 9
Textile / Paper / Pulp - - - -
Chemical 5 - 2 7
Medicine 3 - - 3
Oil / Coal / Mining - - 1 1
Rubber 1 - - 1
Glass / Soil & Stone 2 - - 2
Steel 2 - - 2
Metal 3 1 - 4
Machine - - 2 2
Electric equipment 4 - - 4
Transportation equipment 1 - - 1
Precision equipment 3 - 1 4
Misc. manufacturing 8 - - 8
Trading 2 2 1 5
Department store / Super market - - 1 1
Various commercial 8 - 1 9
Life insurance - - - -
Non-life insurance - - - -
Finance 7 1 1 9
Real estate 4 - - 4
Transportation / Warehouse 5 - 2 7
Telecom / Advertising 2 - - 2
Electric / Gas 4 - - 4
Services 17 - 1 18
Independent administrative institution /
Special public institution / School
corporation / Association etc.
4 - 1 5
Total (# of Organizations) 96 4 17 117
Ratio (%) 82.1 3.4 14.5
� No responses: 4 organizations
209
<Table 94> Development of environment audit checklist (by industry)
Unit: Number of organizations
Timing of development
Industry
Developed a
standardized
checklist
Developing for
each
engagement
Not develop a
checklist Total
Construction 4 2 - 6
Fishing / Food 6 3 2 11
Textile / Paper / Pulp 1 - - 1
Chemical - 5 4 9
Medicine 1 3 - 4
Oil / Coal / Mining - - - -
Rubber - 1 - 1
Glass / Soil & Stone 1 2 - 3
Steel 2 - 1 3
Metal 1 2 3 6
Machine 1 3 1 5
Electric equipment 6 2 2 10
Transportation equipment 2 - - 2
Precision equipment 3 2 - 5
Misc. manufacturing 2 3 3 8
Trading 5 - - 5
Department store / Super market 1 1 - 2
Various commercial 5 5 1 11
Life insurance - - - -
Non-life insurance - - - -
Finance 6 4 - 10
Real estate - 5 - 5
Transportation / Warehouse 3 4 - 7
Telecom / Advertising 3 1 - 4
Electric / Gas - 4 - 4
Services 14 9 5 28
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 3 2 6
Total (# of Organizations) 68 64 24 156
Ratio (%) 43.6 41.0 15.4
Total (# of Organizations) 132 24 156
Ratio (%) 84.6 15.4
� No responses: 52 organizations
210
<Table 95> Priority area of environment audit conducted by the IAA (by industry)
Unit: Number of organizations
Area
Industry
Environm
ent
managem
ent
structure
Policy on
environment
managem
ent
Effort to conserve
and recycle
resources
Handling of
industrial waste
Maintenance of
ISO
14001
Others
Total
Construction 2 3 2 3 2 - 12
Fishing / Food 6 3 4 9 6 2 30
Textile / Paper / Pulp 1 1 1 - 3
Chemical 8 6 5 5 5 - 29
Medicine 3 3 2 4 - - 12
Oil / Coal / Mining - - - - 1 - 1
Rubber 1 1 1 1 - - 4
Glass / Soil & Stone 3 2 - 2 - 1 8
Steel 2 1 - 2 1 - 6
Metal 3 3 4 5 4 - 19
Machine 4 4 1 5 2 - 16
Electric equipment 8 7 5 9 5 3 37
Transportation equipment 2 2 2 2 - - 8
Precision equipment 4 4 2 3 1 - 14
Misc. manufacturing 5 5 3 6 4 - 23
Trading 4 2 2 3 4 - 15
Department store / Super market 2 2 2 1 1 - 8
Various commercial 9 5 5 9 4 1 33
Life insurance - - - - - - -
Non-life insurance - - - - - - -
Finance 4 3 1 3 5 1 17
Real estate 3 1 3 3 - - 10
Transportation / Warehouse 4 5 6 5 3 - 23
Telecom / Advertising 3 3 3 4 2 - 15
Electric / Gas 1 2 1 1 1 2 8
Services 19 9 16 15 12 1 72 Independent administrative institution / Special public
institution / School corporation / Association etc.
3 2 2 2 2 - 11
Total (# of Organizations) 104 79 72 102 66 11 434
Ratio (%) 65.8 50.0 45.6 64.6 41.8 7.0
� No responses: 50 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (158 organizations) * 100
� Others include “compliance to applicable laws”, “according to environmental issues at that time”,
“environment management system operation”, “health of employees and safety of workplace”, “according
to administrative direction from regulatory agencies”, “effluent treatment”, and “contribution to
environment”.
211
<Table 96> Report to the IAA if other functions / departments conducted environment audit (by industry)
Unit: Number of organizations
Report to IAA
Industry
Reporting Not
Reporting
Total
Construction 4 25 29
Fishing / Food 10 8 18
Textile / Paper / Pulp 4 3 7
Chemical 20 28 48
Medicine 9 7 16
Oil / Coal / Mining 1 3 4
Rubber 1 1 2
Glass / Soil & Stone 1 6 7
Steel 1 3 4
Metal 3 8 11
Machine 19 13 32
Electric equipment 29 37 66
Transportation equipment 4 27 31
Precision equipment 7 9 16
Misc. manufacturing 9 13 22
Trading 15 18 33
Department store / Super market 6 4 10
Various commercial 6 7 13
Life insurance - 1 1
Non-life insurance 1 1 2
Finance 2 6 8
Real estate 2 1 3
Transportation / Warehouse 13 11 24
Telecom / Advertising 5 7 12
Electric / Gas 2 4 6
Services 12 17 29
Independent administrative institution /
Special public institution / School
corporation / Association etc.
4 4 8
Total (# of Organizations) 190 272 462
Ratio (%) 41.1 58.9
� No responses: 85 organizations
212
<Relationship with Other Audits>
1. Relationship between Internal Audit and Kansayaku (Corporate Auditors) Audit (Tables 97 to 103)
<Table 97> Communication (transfer of information) from the kansayaku to the IAA (by industry)
Unit: Number of organizations
Communication
Industry
Communicating Not
Communicating
Total
Construction 57 13 70
Fishing / Food 47 4 51
Textile / Paper / Pulp 21 - 21
Chemical 70 17 87
Medicine 28 3 31
Oil / Coal / Mining 9 1 10
Rubber 4 1 5
Glass / Soil & Stone 12 2 14
Steel 14 1 15
Metal 29 3 32
Machine 56 11 67
Electric equipment 88 15 103
Transportation equipment 36 7 43
Precision equipment 20 5 25
Misc. manufacturing 53 7 60
Trading 51 21 72
Department store / Super market 30 6 36
Various commercial 61 18 79
Life insurance 13 2 15
Non-life insurance 8 3 11
Finance 108 40 148
Real estate 41 8 49
Transportation / Warehouse 54 14 68
Telecom / Advertising 33 5 38
Electric / Gas 16 2 18
Services 153 32 185
Independent administrative institution /
Special public institution / School
corporation / Association etc.
25 6 31
Total (# of Organizations) 1,137 247 1,384
Ratio (%) 82.2 17.8
� No responses: 89 organizations
213
<Table 98> Contents of information from the kansayaku to the IAA (by industry)
Unit: Number of organizations
Contents
Industry
Audit
policy
Audit
location
Audit
schedule
Audit
results Others Total
Construction 42 35 37 39 1 154
Fishing / Food 33 29 30 33 2 127
Textile / Paper / Pulp 14 10 15 15 - 54
Chemical 55 38 35 42 4 174
Medicine 20 19 20 18 1 78
Oil / Coal / Mining 7 6 5 4 - 22
Rubber 3 1 1 1 - 6
Glass / Soil & Stone 7 9 8 10 2 36
Steel 12 10 9 10 - 41
Metal 17 15 14 17 1 64
Machine 37 30 30 36 2 135
Electric equipment 64 56 58 63 5 246
Transportation equipment 28 23 25 24 1 101
Precision equipment 14 8 10 13 - 45
Misc. manufacturing 35 37 41 35 2 150
Trading 35 29 28 35 3 130
Department store / Super market 22 12 6 23 1 64
Various commercial 41 31 28 33 4 137
Life insurance 8 5 3 10 1 27
Non-life insurance 8 6 6 6 - 26
Finance 70 54 69 80 3 276
Real estate 33 25 23 29 - 110
Transportation / Warehouse 40 36 35 36 1 148
Telecom / Advertising 26 19 19 25 - 89
Electric / Gas 15 13 14 12 1 55
Services 121 76 87 99 3 386 Independent administrative institution / Special public
institution / School corporation / Association etc.
21 20 19 21 1 82
Total (# of Organizations) 828 652 675 769 39 2,963
Ratio (%) 74.3 58.5 60.6 69.0 3.5
� No responses: 23 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,114 organizations) * 100
� Others include “minutes of kansayaku meeting”, “contents of Board meeting”, “contents of other important
meetings”, “organizational issues”, “relationship between management priority and audit”, “audit plan of
kansayaku audit”, “advice to internal audit”, etc.
214
<Table 99> Contents of information from the IAA to the kansayaku (by industry)
Unit: Number of organizations
Contents
Industry Audit plan Audit status
Audit
results Others
Not
communica
ting
Total
Construction 62 41 66 2 3 174
Fishing / Food 44 29 52 - - 125
Textile / Paper / Pulp 19 13 19 - - 51
Chemical 65 54 79 2 3 203
Medicine 27 20 29 1 1 78
Oil / Coal / Mining 9 4 10 - - 23
Rubber 4 2 4 - - 10
Glass / Soil & Stone 12 8 14 - - 34
Steel 14 9 15 - 1 39
Metal 21 18 30 - 1 70
Machine 57 33 64 1 3 158
Electric equipment 88 67 96 3 2 256
Transportation equipment 41 32 41 - 1 115
Precision equipment 21 16 23 - - 60
Misc. manufacturing 53 42 57 1 1 154
Trading 58 45 66 1 2 172
Department store / Super market 30 22 33 - 2 87
Various commercial 62 55 75 1 5 198
Life insurance 14 9 15 - - 38
Non-life insurance 8 6 11 - - 25
Finance 115 108 146 2 1 372
Real estate 41 25 47 2 1 116
Transportation / Warehouse 61 39 63 - 3 166
Telecom / Advertising 34 24 36 - 3 97
Electric / Gas 18 13 18 1 1 51
Services 147 120 166 7 13 453 Independent administrative institution / Special public
institution / School corporation / Association etc.
25 22 29 - 2 78
Total (# of Organizations) 1,150 876 1,304 24 49 3,403
Ratio (%) 83.9 63.9 95.2 1.8 3.6
� No responses: 103 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,370 organizations) * 100
� Others include “status of improvement”, “internal control”, “as necessary”, “risk”, “activity report”,
“internal audit items”, etc.
215
<Table 100> Timing (frequency) of reporting of internal audit results from the IAA to the kansayaku (by industry)
Unit: Number of organizations
Timing (frequency)
Industry
Each
engagemen
t
Monthly Quarterly Semi-
annually Annually Others Total
Construction 42 6 7 8 1 - 64
Fishing / Food 28 9 10 2 1 1 51
Textile / Paper / Pulp 15 3 - 1 - - 19
Chemical 52 6 9 7 - 4 78
Medicine 20 6 1 - - - 27
Oil / Coal / Mining 8 - 2 - - - 10
Rubber 3 1 - - - - 4
Glass / Soil & Stone 11 1 1 1 - - 14
Steel 10 - 3 2 - - 15
Metal 22 3 3 - - 2 30
Machine 53 3 3 4 - - 63
Electric equipment 65 15 9 5 1 - 95
Transportation equipment 33 3 3 2 - - 41
Precision equipment 18 2 1 1 - - 22
Misc. manufacturing 44 5 2 2 - 1 54
Trading 51 7 5 - 2 - 65
Department store / Super market 20 5 5 3 - - 33
Various commercial 44 12 11 5 2 1 75
Life insurance 12 2 1 - - - 15
Non-life insurance 8 2 1 - - - 11
Finance 110 23 3 6 2 2 146
Real estate 32 4 5 3 1 1 46
Transportation / Warehouse 43 3 8 5 3 - 62
Telecom / Advertising 19 7 4 4 - 2 36
Electric / Gas 10 1 3 4 - - 18
Services 122 15 13 11 2 3 166 Independent administrative institution / Special public
institution / School corporation / Association etc.
14 3 2 5 3 2 29
Total (# of Organizations) 909 147 115 81 18 19 1,289
Ratio (%) 70.5 11.4 8.9 6.3 1.4 1.5
� No responses: 15 organizations
� Others include “every 2 months”, “upon request from kansayaku”, “certain period of time”, “weekly”, “as
necessary”, and “on an irregular base”.
216
<Table 101> Coordination of audit work between the IAA and the kansayaku (by industry)
Unit: Number of organizations
IA and Kansayaku audit
Industry
Coordinating Not
Coordinating
Total
Construction 47 21 68
Fishing / Food 40 12 52
Textile / Paper / Pulp 17 5 22
Chemical 51 33 84
Medicine 21 9 30
Oil / Coal / Mining 6 4 10
Rubber 1 4 5
Glass / Soil & Stone 8 6 14
Steel 11 4 15
Metal 21 9 30
Machine 41 26 67
Electric equipment 66 36 102
Transportation equipment 28 15 43
Precision equipment 13 11 24
Misc. manufacturing 38 21 59
Trading 37 36 73
Department store / Super market 17 19 36
Various commercial 48 31 79
Life insurance 7 8 15
Non-life insurance 4 7 11
Finance 67 80 147
Real estate 29 18 47
Transportation / Warehouse 34 31 65
Telecom / Advertising 26 12 38
Electric / Gas 15 3 18
Services 115 67 182
Independent administrative institution /
Special public institution / School
corporation / Association etc.
21 12 33
Total (# of Organizations) 829 540 1,369
Ratio (%) 60.6 39.4
� No responses: 104 organizations
217
<Table 102> Contents of coordination of audit work between the IAA and the kansayaku (by industry)
Unit: Number of organizations
Contents
Industry
Audit
policy
Audit
location
Audit
schedule
Audit scope
/ items Others Total
Construction 10 24 39 17 - 90
Fishing / Food 16 19 28 19 - 82
Textile / Paper / Pulp 4 11 15 8 - 38
Chemical 18 32 40 24 1 115
Medicine 6 15 18 15 - 54
Oil / Coal / Mining - 1 6 2 - 9
Rubber 1 - - - - 1
Glass / Soil & Stone 3 5 7 6 - 21
Steel 4 5 9 8 - 26
Metal 3 12 17 11 - 43
Machine 10 27 35 20 1 93
Electric equipment 25 31 50 36 3 145
Transportation equipment 12 17 19 14 - 62
Precision equipment 6 9 11 10 - 36
Misc. manufacturing 13 28 27 23 - 91
Trading 14 23 26 21 2 86
Department store / Super market 8 9 4 14 - 35
Various commercial 19 33 37 24 - 113
Life insurance 2 3 4 5 - 14
Non-life insurance - - 3 1 - 4
Finance 17 24 49 33 - 123
Real estate 12 12 15 20 - 59
Transportation / Warehouse 13 20 28 20 - 81
Telecom / Advertising 15 15 20 17 - 67
Electric / Gas 6 10 13 11 1 41
Services 48 57 77 70 2 254 Independent administrative institution / Special public
institution / School corporation / Association etc.
9 14 13 14 1 51
Total (# of Organizations) 294 456 610 463 11 1,834
Ratio (%) 35.7 55.3 74.0 56.2 1.3
� No responses: 5 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (824 organizations) * 100
� Others include “joint audit”, “responses to audit results”, “overall role-sharing”, etc.
218
<Table 103> Conducting joint audit by the IAA and the kansayaku (by industry)
Unit: Number of organizations
Joint audit
Industry
Conducting Not
Conducting
Total
Construction 32 37 69
Fishing / Food 16 36 52
Textile / Paper / Pulp 9 13 22
Chemical 30 54 84
Medicine 9 22 31
Oil / Coal / Mining 1 9 10
Rubber - 5 5
Glass / Soil & Stone 5 9 14
Steel 5 10 15
Metal 18 13 31
Machine 28 38 66
Electric equipment 38 64 102
Transportation equipment 18 24 42
Precision equipment 8 17 25
Misc. manufacturing 22 36 58
Trading 21 51 72
Department store / Super market 7 27 34
Various commercial 32 47 79
Life insurance 4 11 15
Non-life insurance 1 10 11
Finance 26 113 139
Real estate 13 36 49
Transportation / Warehouse 13 53 66
Telecom / Advertising 10 27 37
Electric / Gas 4 13 17
Services 62 119 181
Independent administrative institution /
Special public institution / School
corporation / Association etc.
11 19 30
Total (# of Organizations) 443 913 1,356
Ratio (%) 32.7 67.3
� No responses: 117 organizations
219
2. Relationship between Internal Audit and Audit Committee (Tables 104 to 110)
<Table 104> Establishment of the audit committee charter (by industry)
Unit: Number of organizations
Charter
Industry
Established Not
Established
Total
Construction 2 7 9
Fishing / Food 2 4 6
Textile / Paper / Pulp 1 - 1
Chemical 7 6 13
Medicine 1 2 3
Oil / Coal / Mining - - -
Rubber 1 1 2
Glass / Soil & Stone 1 - 1
Steel 2 - 2
Metal 1 4 5
Machine 2 2 4
Electric equipment 14 7 21
Transportation equipment - 1 1
Precision equipment 5 1 6
Misc. manufacturing 4 7 11
Trading 6 7 13
Department store / Super market 2 4 6
Various commercial 3 11 14
Life insurance 3 2 5
Non-life insurance 1 1 2
Finance 19 21 40
Real estate 2 2 4
Transportation / Warehouse 2 5 7
Telecom / Advertising 1 5 6
Electric / Gas 1 1 2
Services 9 22 31
Independent administrative institution /
Special public institution / School
corporation / Association etc.
3 4 7
Total (# of Organizations) 95 127 222
Ratio (%) 42.8 57.2
� No responses: 1,251 organizations
220
<Table 105> Audit committee’s authority to order / instruct the IAA (by industry)
Unit: Number of organizations
Authority
Industry
Having authority to
order / instruct
Not having
authority to order /
instruct
Total
Construction 1 3 4
Fishing / Food 1 4 5
Textile / Paper / Pulp 1 - 1
Chemical 5 6 11
Medicine - 1 1
Oil / Coal / Mining - - -
Rubber - 2 2
Glass / Soil & Stone - 1 1
Steel 1 1 2
Metal - 3 3
Machine 1 - 1
Electric equipment 5 9 14
Transportation equipment - 1 1
Precision equipment 2 3 5
Misc. manufacturing 2 3 5
Trading 4 6 10
Department store / Super market 2 2 4
Various commercial 2 4 6
Life insurance 3 1 4
Non-life insurance 1 - 1
Finance 14 12 26
Real estate - 1 1
Transportation / Warehouse - 4 4
Telecom / Advertising 1 1 2
Electric / Gas - - -
Services 6 14 20
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 4 5
Total (# of Organizations) 53 86 139
Ratio (%) 38.1 61.9
� No responses: 1,334 organizations
221
<Table 106> Dedicated staff members for the audit committee (by industry)
Unit: Number of organizations
Dedicated staff
Industry
Dedicated staff exist
Som
e of internal audit
staff concurrently serve
All of internal audit staff
concurrently serve
Som
e of other
department staff
concurrently serve
No dedicated staff exist
Total
Construction - - 1 - 3 4
Fishing / Food 1 1 - - 4 6
Textile / Paper / Pulp 1 - - - - 1
Chemical 2 1 1 1 5 10
Medicine 1 - - - - 1
Oil / Coal / Mining - - - - - -
Rubber - - - - 2 2
Glass / Soil & Stone - - - - 1 1
Steel 1 1 - - - 2
Metal 1 - - - 2 3
Machine - - 1 - - 1
Electric equipment 4 - 1 - 10 15
Transportation equipment - - - - - -
Precision equipment - 2 - - 3 5
Misc. manufacturing - 1 - - 3 4
Trading 3 1 - - 6 10
Department store / Super market 1 2 - - 1 4
Various commercial 1 - 1 - 6 8
Life insurance 1 - 1 - 2 4
Non-life insurance 1 - 1 - - 2
Finance 9 4 1 - 12 26
Real estate 1 - - - - 1
Transportation / Warehouse - - 1 1 1 3
Telecom / Advertising - 1 - - 1 2
Electric / Gas 1 - - - - 1
Services 5 1 2 12 20 Independent administrative institution / Special public
institution / School corporation / Association etc.
- 2 - 1 2 5
Total (# of Organizations) 34 17 11 3 76 141
Ratio (%) 24.1 12.1 7.8 2.1 53.9
Total (# of Organizations) 65 76 141
Ratio (%) 46.1 53.9
� No responses: 1,332 organizations
222
<Table 107> Contents of information from the IAA to the audit committee (by industry)
Unit: Number of organizations
Contents
Industry Audit plan Audit status
Audit
results Others
Not
communica
ting
Total
Construction - 1 - - 2 3
Fishing / Food 2 2 3 - 3 10
Textile / Paper / Pulp 1 1 1 - - 3
Chemical 6 4 7 - 3 20
Medicine 1 - 1 - - 2
Oil / Coal / Mining - - - - - -
Rubber - 1 - - 1 2
Glass / Soil & Stone - - - - 1 1
Steel 1 - 2 - - 3
Metal 1 - 1 - 3 5
Machine 1 1 1 - - 3
Electric equipment 10 8 12 - 3 33
Transportation equipment - - - - - -
Precision equipment 4 2 3 - 1 10
Misc. manufacturing 2 1 1 - 1 5
Trading 4 2 5 - 4 15
Department store / Super market 2 1 3 - 1 7
Various commercial 2 3 3 - 4 12
Life insurance 3 3 3 - 1 10
Non-life insurance 2 2 2 - - 6
Finance 12 12 16 - 7 47
Real estate 1 1 1 - - 3
Transportation / Warehouse 2 2 2 - 1 7
Telecom / Advertising 1 1 1 - 1 4
Electric / Gas - - - - 1 1
Services 9 8 11 - 7 35 Independent administrative institution / Special public
institution / School corporation / Association etc.
3 3 4 - - 10
Total (# of Organizations) 70 59 83 - 45 257
Ratio (%) 52.6 44.4 62.4 - 33.8
� No responses: 1,340 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (133 organizations) * 100
223
<Table 108> Timing (frequency) of the reporting of internal audit results from the IAA to the audit committee (by
industry)
Unit: Number of organizations
Timing (frequency)
Industry
Each
engageme
nt
Monthly Quarterly Semi-
annually Annually Others Total
Construction - - - - - - -
Fishing / Food 1 1 - 1 3
Textile / Paper / Pulp - 1 - - - - 1
Chemical 2 2 2 1 - - 7
Medicine 1 - - - - - 1
Oil / Coal / Mining - - - - - -
Rubber - - - - - -
Glass / Soil & Stone - - - - - -
Steel 1 - 1 - - - 2
Metal 1 - - - - - 1
Machine 1 - - - - - 1
Electric equipment 8 3 - 1 - - 12
Transportation equipment - - - - - - -
Precision equipment 3 - - - - - 3
Misc. manufacturing 1 - - - - - 1
Trading 3 2 - - - - 5
Department store / Super market 1 1 1 - - - 3
Various commercial 2 - 1 - - - 3
Life insurance - - 3 - - - 3
Non-life insurance - 1 - - 1 - 2
Finance 5 5 3 - - 2 15
Real estate - - 1 - - - 1
Transportation / Warehouse 2 - - - - 2
Telecom / Advertising - - 1 - - - 1
Electric / Gas - - - - - -
Services 6 1 1 2 - - 10 Independent administrative institution / Special public
institution / School corporation / Association etc.
3 - - - 1 - 4
Total (# of Organizations) 41 17 14 5 2 2 81
Ratio (%) 50.6 21.0 17.3 6.2 2.5 2.5
� No responses: 2 organizations
� Others include “February, April, May, August, and November”, and “every 2 months”.
224
<Table 109> Contents of instruction from the audit committee to the IAA (by industry)
Unit: Number of organizations
Instruction
Industry
Risk
assessment Audit policy Audit scope
Audit
universe Others Total
Construction 1 - - - - 1
Fishing / Food 2 - - 1 - 3
Textile / Paper / Pulp 1 - 1 - - 2
Chemical - 1 2 4 1 8
Medicine - - - - - -
Oil / Coal / Mining - - - - -
Rubber 1 - - - 1
Glass / Soil & Stone - - - 1 1
Steel 1 - 1 - 2
Metal - - - 1 1
Machine - 1 1 1 - 3
Electric equipment 5 8 5 8 - 26
Transportation equipment - - - - - -
Precision equipment - 2 1 2 - 5
Misc. manufacturing - - - - - -
Trading 1 1 - 2 1 5
Department store / Super market 1 1 - - - 2
Various commercial 1 1 2 1 - 5
Life insurance 1 - 2 1 1 5
Non-life insurance - - - 1 - 1
Finance 3 8 9 8 1 29
Real estate - - - - - -
Transportation / Warehouse 1 2 1 1 - 5
Telecom / Advertising - 1 - 1 - 2
Electric / Gas - - - - - -
Services 5 5 6 5 2 23 Independent administrative institution / Special public
institution / School corporation / Association etc.
2 3 3 2 - 10
Total (# of Organizations) 26 34 33 39 8 140
Ratio (%) 33.8 44.2 42.9 50.6 10.4
� No responses: 1,396 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (77 organizations) * 100
� Others include “no instruction from audit committee”, and “additional investigation to audit results”.
225
<Table 110> Approval by the audit committee on the IAA (by industry)
Unit: Number of organizations
Approval matters
Industry Audit plan Budget
Human
resources
Charter /
manuals Others Total
Construction - - - 1 - 1
Fishing / Food 3 - - - - 3
Textile / Paper / Pulp 1 - - - - 1
Chemical 1 - - - - 1
Medicine - - - - - -
Oil / Coal / Mining - - - - - -
Rubber 1 - - - - 1
Glass / Soil & Stone 1 1 - - - 2
Steel 1 - - - - 1
Metal - - - 1 - 1
Machine 1 - - - - 1
Electric equipment 7 - 1 - - 8
Transportation equipment - - - - - -
Precision equipment 4 1 1 1 - 7
Misc. manufacturing - - - - - -
Trading 1 2 - 3 - 6
Department store / Super market 1 - 1 - - 2
Various commercial 1 - - 1 - 2
Life insurance 2 - - 1 - 3
Non-life insurance 1 - - 1 - 2
Finance 7 1 3 4 1 16
Real estate 1 - - - - 1
Transportation / Warehouse - 1 1 - - 2
Telecom / Advertising 1 1 1 1 - 4
Electric / Gas - - - - - -
Services 7 1 2 3 - 13 Independent administrative institution / Special public
institution / School corporation / Association etc.
3 1 1 3 - 8
Total (# of Organizations) 45 9 11 20 1 86
Ratio (%) 80.4 16.1 19.6 35.7 1.8
� No responses: 1,417 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (56 organizations) * 100
� Others : “ corrective actions to findings”
226
3. Relationship between Internal Audit and External Auditors (CPAs) (Tables 111 to 114)
<Table 111> Coordination of audit work between the IAA and the external auditors (CPAs) (by industry)
Unit: Number of organizations
Coordination
Industry
Coordinating Not
Coordinating
Total
Construction 10 57 67
Fishing / Food 11 41 52
Textile / Paper / Pulp 5 18 23
Chemical 17 72 89
Medicine 2 30 32
Oil / Coal / Mining 2 8 10
Rubber - 5 5
Glass / Soil & Stone 2 12 14
Steel 5 11 16
Metal 3 28 31
Machine 22 46 68
Electric equipment 24 76 100
Transportation equipment 7 36 43
Precision equipment 5 21 26
Misc. manufacturing 15 45 60
Trading 20 54 74
Department store / Super market 5 35 40
Various commercial 14 70 84
Life insurance 7 10 17
Non-life insurance 3 10 13
Finance 34 125 159
Real estate 9 41 50
Transportation / Warehouse 13 56 69
Telecom / Advertising 16 22 38
Electric / Gas 3 15 18
Services 41 142 183
Independent administrative institution /
Special public institution / School
corporation / Association etc.
14 26 40
Total (# of Organizations) 309 1,112 1,421
Ratio (%) 21.7 78.3
� No responses: 52 organizations
227
<Table 112> Contents of coordination of audit work between the IAA and the external auditors (CPAs) (by
industry)
Unit: Number of organizations
Contents
Industry
Audit schedule Audit scope /
items
Audit location Total
Construction 8 2 5 15
Fishing / Food 8 4 6 18
Textile / Paper / Pulp 5 3 3 11
Chemical 13 8 7 28
Medicine 2 - 1 3
Oil / Coal / Mining 2 - - 2
Rubber - - - -
Glass / Soil & Stone 2 - 1 3
Steel 4 2 5 11
Metal 3 1 2 6
Machine 17 8 10 35
Electric equipment 19 12 14 45
Transportation equipment 5 4 3 12
Precision equipment 3 3 4 10
Misc. manufacturing 12 8 8 28
Trading 15 6 6 27
Department store / Super market 3 3 2 8
Various commercial 10 5 5 20
Life insurance 6 4 3 13
Non-life insurance 2 2 1 5
Finance 26 17 9 52
Real estate 6 6 1 13
Transportation / Warehouse 11 5 9 25
Telecom / Advertising 12 6 4 22
Electric / Gas 3 1 2 6
Services 23 22 19 64
Independent administrative institution /
Special public institution / School
corporation / Association etc.
11 8 6 25
Total (# of Organizations) 231 140 136 507
Ratio (%) 76.5 46.4 45.0
� No responses: 7 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (302 organizations) * 100
228
<Table 113> Communication of internal audit results to the external auditors (CPAs) (by industry)
Unit: Number of organizations
Communication
Industry
Always
communicating
Communicating if
requested
Communicating
depends on matters
Not
communicating Total
Construction 6 33 7 18 64
Fishing / Food 4 29 5 14 52
Textile / Paper / Pulp 2 11 4 6 23
Chemical 6 48 4 30 88
Medicine 3 15 2 11 31
Oil / Coal / Mining - 7 - 3 10
Rubber - 4 - 1 5
Glass / Soil & Stone 2 2 2 8 14
Steel 3 5 1 6 15
Metal 2 15 3 9 29
Machine 7 27 11 22 67
Electric equipment 10 39 13 36 98
Transportation equipment 3 19 2 16 40
Precision equipment 3 14 2 7 26
Misc. manufacturing 3 30 9 17 59
Trading 10 41 9 12 72
Department store / Super market 1 20 7 8 36
Various commercial 6 39 12 19 76
Life insurance 3 8 4 1 16
Non-life insurance 1 9 1 2 13
Finance 12 87 21 33 153
Real estate 2 29 4 13 48
Transportation / Warehouse 3 22 13 28 66
Telecom / Advertising 1 17 9 11 38
Electric / Gas 2 6 2 6 16
Services 15 78 22 56 171 Independent administrative institution / Special public
institution / School corporation / Association etc.
7 14 8 9 38
Total (# of Organizations) 117 668 177 402 1,364
Ratio (%) 8.6 49.0 13.0 29.5
� No responses: 109 organizations
229
<Table 114> Documents that the external auditors (CPAs) request the IAA (by industry)
Unit: Number of organizations
Documents
Industry
Audit report Working paper Not consistent Total
Construction 33 10 3 46
Fishing / Food 22 6 1 29
Textile / Paper / Pulp 12 6 2 20
Chemical 39 6 3 48
Medicine 10 1 2 13
Oil / Coal / Mining 3 - 1 4
Rubber 3 1 2 6
Glass / Soil & Stone 4 - 1 5
Steel 8 - 1 9
Metal 15 2 1 18
Machine 33 8 5 46
Electric equipment 39 7 9 55
Transportation equipment 13 3 2 18
Precision equipment 12 4 - 16
Misc. manufacturing 19 5 2 26
Trading 38 11 2 51
Department store / Super market 23 3 2 28
Various commercial 37 9 7 53
Life insurance 9 4 1 14
Non-life insurance 7 2 1 10
Finance 80 28 3 111
Real estate 18 5 2 25
Transportation / Warehouse 27 1 1 29
Telecom / Advertising 16 1 5 22
Electric / Gas 8 2 10
Services 79 20 5 104
Independent administrative institution /
Special public institution / School
corporation / Association etc.
16 4 1 21
Total (# of Organizations) 623 147 67 837
Ratio (%) 96.1 22.7 10.3
� No responses: 825 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (648 organizations) * 100
� Not consistent include “audit plan”, “internal control evaluation”, “summary of audit results”, “risk related”,
“improvement report”, “audit procedures”, “audit policies”, “evidence”, “necessary information”, etc.
230
<Recent implementation / revision of Laws and Regulations> (Tables 115 to 117)
<Table 115> Impact from recent implementation / revision of laws and regulations on internal audit (by
industry)
Unit: Number of organizations
Impact
Industry
Some impacts No impact Total
Construction 53 16 69
Fishing / Food 36 15 51
Textile / Paper / Pulp 22 1 23
Chemical 67 24 91
Medicine 26 7 33
Oil / Coal / Mining 7 3 10
Rubber 4 1 5
Glass / Soil & Stone 10 3 13
Steel 16 1 17
Metal 24 8 32
Machine 59 9 68
Electric equipment 87 18 105
Transportation equipment 34 8 42
Precision equipment 20 7 27
Misc. manufacturing 37 23 60
Trading 48 27 75
Department store / Super market 28 12 40
Various commercial 51 32 83
Life insurance 16 1 17
Non-life insurance 13 - 13
Finance 148 18 166
Real estate 39 11 50
Transportation / Warehouse 51 21 72
Telecom / Advertising 30 9 39
Electric / Gas 17 - 17
Services 132 56 188
Independent administrative institution /
Special public institution / School
corporation / Association etc.
20 23 43
Total (# of Organizations) 1,095 354 1,449
Ratio (%) 75.6 24.4
� No responses: 24 organizations
231
<Table 116> Recent implementation / revision of laws and regulations which impacted on internal audit (by
industry)
Unit: Number of organizations
Laws and Regulations
Industry
Corporation Law
Financial
Instruments and
Exchange Law and C
ouncil
Opinion (*1)
Financial S
ervices Agency’s
Inspection Manual
Basel II (*2)
Others
Total
Construction 47 35 2 - 3 87
Fishing / Food 24 32 1 - 1 58
Textile / Paper / Pulp 14 19 - - 1 34
Chemical 48 60 - - 3 111
Medicine 18 23 1 - 1 43
Oil / Coal / Mining 5 5 - - - 10
Rubber 2 3 - - - 5
Glass / Soil & Stone 7 8 - - - 15
Steel 12 16 - - - 28
Metal 17 18 1 - 1 37
Machine 46 56 1 - 2 105
Electric equipment 70 76 1 - 4 151
Transportation equipment 26 27 1 - 1 55
Precision equipment 13 15 - - 1 29
Misc. manufacturing 29 28 - - 2 59
Trading 37 40 1 1 2 81
Department store / Super market 19 19 - - 4 42
Various commercial 36 40 2 - - 78
Life insurance 10 13 13 - 3 39
Non-life insurance 9 8 10 1 1 29
Finance 80 118 129 92 12 431
Real estate 29 31 8 - 1 69
Transportation / Warehouse 37 40 5 - 4 86
Telecom / Advertising 27 26 - - 3 56
Electric / Gas 16 14 - - 1 31
Services 97 93 8 1 14 213 Independent administrative institution / Special public
institution / School corporation / Association etc.
9 4 3 - 8 24
Total (# of Organizations) 784 867 187 95 73 2,006
Ratio (%) 72.2 79.8 17.2 8.7 6.7
� No responses: 9 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses ( 1,086 organizations) * 100
� Others include “Private Information Protection Law”, “Sarbanes-Oxley Act”, “Subcontracting Law”,
“Moneylending control Law”, “Private School Law”, “Labor relations Law (including Worker Dispatch
Law)”, “Anti-monopoly Law”, “Insurance Business Law”, etc.
232
(*1) “Council Opinions” is “On the Setting of Standards and Practice Standards for Management Assessment and
Audit concerning Internal Control Over Financial Reporting (Council Opinions)”, which was published by
Business Accounting Council.
(*2) “Basel II” is “Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised
Framework - Comprehensive Version”, which was published by Basel Committee on Banking Supervision.
233
234
<Table 117> Contents of impact from recent implementation / revision of laws and regulations (by industry)
Unit: Number of organizations
Area
Industry
Re
vision of Interna
l Audit C
harte
r
Re
vision of Interna
l Audit
Proce
dure
Ma
nuals
Imple
me
ntation of Inte
rnal C
ontrol
Audit
Stre
ngthening o
f collabora
tion
with K
ansa
yaku a
udit
Stre
ngthening o
f collabora
tion
with E
xterna
l Auditors (C
PA
s)
Stre
ngthening o
f collabora
tion
with A
udit Com
mitte
e
Increa
sing Interna
l Audit S
taff
De
creasing Inte
rnal A
udit Sta
ff
Increa
sing Interna
l Audit B
udget
De
creasing Inte
rnal A
udit Budge
t
Cha
nge of Inte
rnal A
udit’s nam
e
Othe
r
Total
Construction 19 12 26 22 11 1 14 - 10 - 4 5 124
Fishing / Food 7 4 23 9 8 - 17 1 5 - 2 3 79
Textile / Paper / Pulp 5 5 14 3 4 - 13 - 8 1 1 4 58
Chemical 24 13 47 22 22 - 27 - 12 - 4 8 179
Medicine 11 8 14 6 4 1 6 - 2 - 2 3 57
Oil / Coal / Mining 3 2 3 1 1 - 5 - 1 - 1 4 21
Rubber 1 1 3 - - - 2 - 1 - - - 8
Glass / Soil & Stone 6 2 6 4 4 - 5 - 4 - 1 - 32
Steel 4 2 11 5 8 - 8 - 3 - 2 2 45
Metal 9 3 12 7 5 - 9 - 3 - - 2 50
Machine 22 13 47 23 13 1 25 - 18 - 4 - 166
Electric equipment 30 18 54 36 18 1 38 - 19 - 10 7 231
Transportation equipment 15 7 22 10 6 - 14 1 7 - 4 4 90
Precision equipment 6 4 13 7 3 - 5 - 3 - 2 - 43
Misc. manufacturing 11 4 19 13 5 - 13 - 5 - 2 5 77
Trading 15 16 27 14 15 - 11 - 7 - 2 5 112
Department store / Super market 11 5 16 8 7 - 9 1 1 - 1 - 59
Various commercial 16 8 35 17 12 - 17 - 6 - 2 2 115
235
Area
Industry
Re
vision of Interna
l Audit C
harte
r
Re
vision of Interna
l Audit
Proce
dure
Ma
nuals
Imple
me
ntation of Inte
rnal C
ontrol
Audit
Stre
ngthening o
f collabora
tion
with K
ansa
yaku a
udit
Stre
ngthening o
f collabora
tion
with E
xterna
l Auditors (C
PA
s)
Stre
ngthening o
f collabora
tion
with A
udit Com
mitte
e
Increa
sing Interna
l Audit S
taff
De
crea
sing Interna
l Audit S
taff
Increa
sing Interna
l Audit B
udget
De
creasing Inte
rnal A
udit Budge
t
Cha
nge of Inte
rnal A
udit’s nam
e
Othe
r
Total
Life insurance 6 9 9 - 2 1 6 - 1 - - 2 36
Non-life insurance 3 6 8 2 2 - 7 - 3 - 1 - 32
Finance 87 108 82 24 15 4 46 - 11 - 8 13 398
Real estate 10 4 25 14 12 - 14 - 4 1 2 4 90
Transportation / Warehouse 19 8 33 19 14 - 20 1 9 1 6 12 142
Telecom / Advertising 12 4 19 12 10 - 11 - 3 - 1 1 73
Electric / Gas 7 6 9 7 6 - 11 - 3 - 3 3 55
Services 38 32 85 46 18 - 39 2 16 - 7 11 294
Independent administrative institution /
Special public institution / School
corporation / Association etc.
4 5 4 7 2 - 1 - - - 1 6 30
Total (# of Organizations) 401 309 666 338 227 9 393 6 165 3 73 106 2,696
Ratio (%) 37.1 28.6 61.6 31.3 21.0 0.8 36.4 0.6 15.3 0.3 6.8 9.8
� No responses: 14 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to each item / number of usable responses (1,081 organizations)
* 100
� Others include “Change of Internal Audit Universe / Items”, “Establishment of Internal Audit Activity”, “Involvement of establishment of Internal Control Systems”, etc.
236
237
<Internal Auditors’ role under the Internal Control Report System> (Tables 118 to 126)
<Table 118> Is your organization required to comply with the Internal Control Report System? (by industry)
Unit: Number of organizations
Required?
Industry
Yes No Total
Construction 54 15 69
Fishing / Food 39 12 51
Textile / Paper / Pulp 23 1 24
Chemical 79 10 89
Medicine 26 7 33
Oil / Coal / Mining 10 - 10
Rubber 4 1 5
Glass / Soil & Stone 13 1 14
Steel 17 - 17
Metal 29 3 32
Machine 63 5 68
Electric equipment 95 10 105
Transportation equipment 36 7 43
Precision equipment 22 5 27
Misc. manufacturing 43 18 61
Trading 55 21 76
Department store / Super market 31 7 38
Various commercial 63 20 83
Life insurance 9 8 17
Non-life insurance 7 6 13
Finance 81 85 166
Real estate 31 20 51
Transportation / Warehouse 48 23 71
Telecom / Advertising 28 10 38
Electric / Gas 15 3 18
Services 115 74 189
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 40 40
Total (# of Organizations) 1,036 412 1,448
Ratio (%) 71.5 28.5
� No responses: 25 organizations
238
<Table 119> Did your organization establish a project to promote the Internal Control Report System? (by
industry)
Unit: Number of organizations
Project established?
Industry
Yes No Total
Construction 51 3 54
Fishing / Food 37 1 38
Textile / Paper / Pulp 23 - 23
Chemical 76 3 79
Medicine 24 2 26
Oil / Coal / Mining 9 1 10
Rubber 4 - 4
Glass / Soil & Stone 12 1 13
Steel 14 3 17
Metal 28 1 29
Machine 57 6 63
Electric equipment 93 2 95
Transportation equipment 31 5 36
Precision equipment 22 - 22
Misc. manufacturing 41 2 43
Trading 51 4 55
Department store / Super market 26 5 31
Various commercial 57 5 62
Life insurance 8 1 9
Non-life insurance 6 1 7
Finance 68 12 80
Real estate 30 1 31
Transportation / Warehouse 44 3 47
Telecom / Advertising 19 9 28
Electric / Gas 14 1 15
Services 101 13 114
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - -
Total (# of Organizations) 946 85 1,031
Ratio (%) 91.8 8.2
� No responses: 5 organizations
239
<Table 120> IAA’s involvement to the project to promote the Internal Control Report System if your organization
established the project (by industry)
Unit: Number of organizations
Level of involvement
Industry
Participating as
project leader
Participating as
project mem
ber
Participating as
observer
Transferred
Internal Audit
staff to project
Not involved to
project
Total
Construction 5 30 13 - 3 51
Fishing / Food 3 22 9 2 1 37
Textile / Paper / Pulp 7 6 6 2 2 23
Chemical 8 42 19 1 5 75
Medicine 4 12 4 1 3 24
Oil / Coal / Mining 2 4 3 - - 9
Rubber - 3 1 - - 4
Glass / Soil & Stone 2 7 3 - 1 13
Steel 2 5 5 - 3 15
Metal - 16 5 - 7 28
Machine 6 29 17 2 3 57
Electric equipment 14 47 23 2 5 91
Transportation equipment 6 15 5 2 4 32
Precision equipment 3 12 3 - 4 22
Misc. manufacturing 5 20 11 - 5 41
Trading 3 29 12 - 8 52
Department store / Super market 3 16 6 - 1 26
Various commercial 6 27 19 - 7 59
Life insurance - 5 1 - 2 8
Non-life insurance 1 2 2 - 1 6
Finance 6 33 24 - 6 69
Real estate 2 17 8 1 1 29
Transportation / Warehouse 4 25 11 - 3 43
Telecom / Advertising 4 5 6 - 4 19
Electric / Gas 2 9 2 1 - 14
Services 13 41 27 4 16 101 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - - - -
Total (# of Organizations) 111 479 245 18 95 948
Ratio (%) 11.7 50.5 25.8 1.9 10.0
� No responses: 88 organizations
240
<Table 121> IAA’s role under Internal Control Report System (by industry)
Unit: Number of organizations
Role
Industry
Maintaining internal
controls
Operating internal
controls
Monitoring
maintenance of internal
controls
Monitoring
operation of internal
controls
Others
No role
Total
Construction 19 11 35 43 1 2 111
Fishing / Food 8 3 27 29 6 1 74
Textile / Paper / Pulp 7 6 18 19 2 52
Chemical 24 12 57 59 8 7 167
Medicine 7 4 19 21 2 3 56
Oil / Coal / Mining 1 1 4 4 4 1 15
Rubber 1 - 3 1 - - 5
Glass / Soil & Stone 4 1 9 8 2 - 24
Steel 2 1 15 16 - - 34
Metal 8 4 15 17 2 3 49
Machine 20 8 50 55 2 1 136
Electric equipment 28 16 74 82 6 2 208
Transportation equipment 12 6 28 30 3 - 79
Precision equipment 5 3 16 17 1 1 43
Misc. manufacturing 11 6 38 41 - - 96
Trading 15 11 31 40 5 6 108
Department store / Super market 6 4 22 22 2 2 58
Various commercial 20 13 47 51 3 3 137
Life insurance 1 - 6 7 2 1 17
Non-life insurance 1 - 6 6 1 - 14
Finance 10 11 61 61 8 1 152
Real estate 2 1 19 23 3 2 50
Transportation / Warehouse 11 6 32 37 3 2 91
Telecom / Advertising 7 4 24 25 2 - 62
Electric / Gas 2 1 12 12 2 - 29
Services 31 18 75 85 5 6 220 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - - - - -
Total (# of Organizations) 263 151 743 811 75 44 2,087
Ratio (%) 25.9 14.9 73.2 79.9 7.4 4.3
� No responses: 21 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,015 organizations) * 100
� Others include “not yet determined / under consideration”, “maintenance of internal control / evaluation of
operation of internal control / audit”, etc.
241
<Table 122> Structure of the IAA if IAA had some roles of the project to promote the Internal Control Report
System (by industry)
Unit: Number of organizations
Structure
Industry
IAA is divided and
a separate head is
appointed
Established
separate team to
handling the
Internal Control
Report System
within IAA
Not separating as
IAA Total
Construction 1 2 46 49
Fishing / Food 3 6 21 30
Textile / Paper / Pulp 3 2 15 20
Chemical 2 3 64 69
Medicine 2 3 18 23
Oil / Coal / Mining - - 5 5
Rubber 1 - 3 4
Glass / Soil & Stone - 1 10 11
Steel 1 1 15 17
Metal 1 2 20 23
Machine 5 3 51 59
Electric equipment 6 9 71 86
Transportation equipment 2 2 27 31
Precision equipment - - 20 20
Misc. manufacturing 1 3 37 41
Trading 3 4 40 47
Department store / Super market - 2 24 26
Various commercial 5 4 45 54
Life insurance 1 - 8 9
Non-life insurance 1 2 4 7
Finance 4 21 49 74
Real estate 1 - 26 27
Transportation / Warehouse 2 5 35 42
Telecom / Advertising 2 2 24 28
Electric / Gas - 4 8 12
Services 8 11 80 99 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - -
Total (# of Organizations) 55 92 766 913
Ratio (%) 6.0 10.1 83.9
� No responses: 123 organizations
242
<Table 123> Impact from the Internal Control Report System to the IAA’s original activities (by industry)
Unit: Number of organizations
Impact
Industry
Some impacts
(cannot complete
original audit plan)
No impact
(can complete original
audit plan)
Total
Construction 14 39 53
Fishing / Food 17 19 36
Textile / Paper / Pulp 12 8 20
Chemical 33 45 78
Medicine 12 13 25
Oil / Coal / Mining 2 7 9
Rubber 3 1 4
Glass / Soil & Stone 7 4 11
Steel 7 9 16
Metal 13 16 29
Machine 31 32 63
Electric equipment 47 47 94
Transportation equipment 18 16 34
Precision equipment 12 8 20
Misc. manufacturing 11 29 40
Trading 22 32 54
Department store / Super market 11 16 27
Various commercial 21 38 59
Life insurance 3 6 9
Non-life insurance 3 4 7
Finance 40 39 79
Real estate 10 19 29
Transportation / Warehouse 20 26 46
Telecom / Advertising 7 21 28
Electric / Gas 8 6 14
Services 37 72 109
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - -
Total (# of Organizations) 421 572 993
Ratio (%) 42.4 57.6
� No responses: 43 organizations
243
<Table 124> Change of human resources of the IAA due to the Internal Control Report System (by industry)
Unit: Number of organizations
Human resources
Industry Increased Decreased No changes Total
Construction 16 - 36 52
Fishing / Food 18 - 19 37
Textile / Paper / Pulp 15 - 4 19
Chemical 32 2 42 76
Medicine 12 - 13 25
Oil / Coal / Mining 2 1 6 9
Rubber 2 - 2 4
Glass / Soil & Stone 7 - 5 12
Steel 9 - 8 17
Metal 8 - 21 29
Machine 30 2 31 63
Electric equipment 47 1 47 95
Transportation equipment 15 1 19 35
Precision equipment 7 - 14 21
Misc. manufacturing 13 1 28 42
Trading 14 3 37 54
Department store / Super market 7 1 19 27
Various commercial 25 - 34 59
Life insurance 3 1 5 9
Non-life insurance 5 - 2 7
Finance 31 2 45 78
Real estate 13 - 15 28
Transportation / Warehouse 22 - 25 47
Telecom / Advertising 11 - 17 28
Electric / Gas 9 - 5 14
Services 30 2 77 109 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - -
Total (# of Organizations) 403 17 576 996
Ratio (%) 40.5 1.7 57.8
� No responses: 40 organizations
244
<Table 125> Change of management’s expectations to the IAA due to the Internal Control Report System (by
industry)
Unit: Number of organizations
Expectations
Industry Heighten Lowered No changes Total
Construction 28 1 24 53
Fishing / Food 24 - 13 37
Textile / Paper / Pulp 17 - 4 21
Chemical 51 - 27 78
Medicine 14 - 11 25
Oil / Coal / Mining 6 - 3 9
Rubber 1 - 2 3
Glass / Soil & Stone 9 2 2 13
Steel 11 - 6 17
Metal 16 - 13 29
Machine 45 - 18 63
Electric equipment 73 - 22 95
Transportation equipment 16 - 20 36
Precision equipment 15 - 6 21
Misc. manufacturing 21 - 20 41
Trading 27 - 26 53
Department store / Super market 18 1 8 27
Various commercial 31 - 27 58
Life insurance 4 1 4 9
Non-life insurance 3 - 4 7
Finance 49 - 30 79
Real estate 20 - 10 30
Transportation / Warehouse 35 - 12 47
Telecom / Advertising 21 - 7 28
Electric / Gas 10 - 3 13
Services 58 - 52 110 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - -
Total (# of Organizations) 623 5 374 1,002
Ratio (%) 62.2 0.5 37.3
� No responses: 34 organizations
245
<Table 126> Did the Internal Control Report System make internal audit works easier? (by industry)
Unit: Number of organizations
Works
Industry Easier Harder No changes Total
Construction 19 4 30 53
Fishing / Food 11 7 19 37
Textile / Paper / Pulp 9 2 9 20
Chemical 31 12 34 77
Medicine 14 3 8 25
Oil / Coal / Mining 1 1 6 8
Rubber 3 - 1 4
Glass / Soil & Stone 3 1 8 12
Steel 9 2 5 16
Metal 5 8 15 28
Machine 25 6 31 62
Electric equipment 47 10 36 93
Transportation equipment 9 7 19 35
Precision equipment 6 4 10 20
Misc. manufacturing 15 2 24 41
Trading 25 6 21 52
Department store / Super market 9 2 16 27
Various commercial 31 5 23 59
Life insurance 2 2 5 9
Non-life insurance 2 2 3 7
Finance 14 18 46 78
Real estate 9 1 18 28
Transportation / Warehouse 17 7 22 46
Telecom / Advertising 11 2 15 28
Electric / Gas 2 2 9 13
Services 29 20 62 111 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - -
Total (# of Organizations) 358 136 495 989
Ratio (%) 36.2 13.8 50.1
� No responses: 47 organizations
246
<Quality Assessments of Internal Audit>
1. Internal Assessments (Tables 127 to 133)
<Table 127> Development of internal audit quality assessments rules / manuals based on IIA the Standards (by
industry)
Unit: Number of organizations
QA rules / manuals
Industry
Developed Not
Developed
Total
Construction 13 55 68
Fishing / Food 20 32 52
Textile / Paper / Pulp 7 17 24
Chemical 15 73 88
Medicine 8 25 33
Oil / Coal / Mining 3 7 10
Rubber 2 3 5
Glass / Soil & Stone 2 11 13
Steel 4 13 17
Metal 4 26 30
Machine 20 46 66
Electric equipment 26 76 102
Transportation equipment 8 34 42
Precision equipment 7 19 26
Misc. manufacturing 9 53 62
Trading 20 53 73
Department store / Super market 9 29 38
Various commercial 23 60 83
Life insurance 6 11 17
Non-life insurance 6 7 13
Finance 54 110 164
Real estate 13 37 50
Transportation / Warehouse 20 52 72
Telecom / Advertising 11 27 38
Electric / Gas 5 12 17
Services 53 135 188
Independent administrative institution /
Special public institution / School
corporation / Association etc.
4 38 42
Total (# of Organizations) 372 1,061 1,433
Ratio (%) 26.0 74.0
� No responses: 40 organizations
247
<Table 128> Implementation of periodic “internal assessment” based on the Standards (by industry)
Unit: Number of organizations
Periodic Review
Industry
Implementing Not
Implementing
Total
Construction 7 59 66
Fishing / Food 10 40 50
Textile / Paper / Pulp 2 22 24
Chemical 12 78 90
Medicine 6 25 31
Oil / Coal / Mining - 10 10
Rubber - 4 4
Glass / Soil & Stone - 13 13
Steel 1 16 17
Metal 2 28 30
Machine 7 58 65
Electric equipment 16 87 103
Transportation equipment 6 36 42
Precision equipment 3 23 26
Misc. manufacturing 8 52 60
Trading 9 65 74
Department store / Super market 7 28 35
Various commercial 10 70 80
Life insurance 5 10 15
Non-life insurance 3 10 13
Finance 34 120 154
Real estate 9 38 47
Transportation / Warehouse 10 60 70
Telecom / Advertising 13 23 36
Electric / Gas 7 9 16
Services 26 154 180
Independent administrative institution /
Special public institution / School
corporation / Association etc.
2 37 39
Total (# of Organizations) 215 1,175 1,390
Ratio (%) 15.5 84.5
� No responses: 83 organizations
248
<Table 129> Cycle of periodic internal assessment (by industry)
Unit: Number of organizations
Cycle
Industry
Less than
1 year
Every
year
Every
2�4
years
Every 5
years
6 years or
more Total
Construction 2 4 - 1 - 7
Fishing / Food 1 7 1 1 - 10
Textile / Paper / Pulp - 1 1 - - 2
Chemical 4 6 1 - - 11
Medicine 1 4 - - - 5
Oil / Coal / Mining - - - - - -
Rubber - - - - - -
Glass / Soil & Stone - - - - - -
Steel - 1 - - - 1
Metal - 1 - - - 1
Machine 4 3 - - - 7
Electric equipment 5 7 3 - 1 16
Transportation equipment 1 1 1 - 1 4
Precision equipment - 1 1 - - 2
Misc. manufacturing 3 3 1 - - 7
Trading 2 6 - 1 - 9
Department store / Super market 1 6 - - - 7
Various commercial 2 8 - - - 10
Life insurance 1 3 1 - - 5
Non-life insurance 1 1 1 - - 3
Finance 7 24 - - - 31
Real estate 1 6 1 1 - 9
Transportation / Warehouse 2 6 1 1 - 10
Telecom / Advertising 3 6 2 - - 11
Electric / Gas 1 4 2 - - 7
Services 10 16 - - - 26 Independent administrative institution / Special public
institution / School corporation / Association etc.
- 2 - - - 2
Total (# of Organizations) 52 127 17 5 2 203
Ratio (%) 25.6 62.5 8.4 2.5 1.0
� No responses: 12 organizations
249
<Table 130> Timing of previous periodic “internal assessments” (by industry)
Unit: Number of organizations
Previous assessment
(year)
Industry
2007 2006 �2005 Total
Construction 3 4 - 7
Fishing / Food 3 7 - 10
Textile / Paper / Pulp - 2 - 2
Chemical 5 6 - 11
Medicine 1 4 - 5
Oil / Coal / Mining - - - -
Rubber - - - -
Glass / Soil & Stone - - - -
Steel - 1 - 1
Metal 1 1 - 2
Machine 5 2 - 7
Electric equipment 9 5 2 16
Transportation equipment - 2 1 3
Precision equipment 1 - 1 2
Misc. manufacturing 3 3 1 7
Trading 4 4 1 9
Department store / Super market 3 3 - 6
Various commercial 7 3 - 10
Life insurance 2 2 1 5
Non-life insurance 3 - - 3
Finance 19 11 2 32
Real estate 4 2 1 7
Transportation / Warehouse 3 6 1 10
Telecom / Advertising 6 4 1 11
Electric / Gas 3 4 - 7
Services 13 13 - 26
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 2 - 2
Total (# of Organizations) 98 91 12 201
Ratio (%) 48.7 45.3 6.0
� No responses: 14 organizations
250
<Table 131> Measurement of effectiveness of “ongoing monitoring”, which is an integral part of the day-to-day
supervision of the IAA. (by industry)
Unit: Number of organizations
Implementing Ongoing monitoring and
measurement of effectiveness
Industry
Measuring Not measuring
Not
Implementing
Total
Construction 3 6 51 60
Fishing / Food 7 5 34 46
Textile / Paper / Pulp 1 1 21 23
Chemical 5 5 78 88
Medicine 5 1 22 28
Oil / Coal / Mining 1 - 9 10
Rubber 1 1 2 4
Glass / Soil & Stone 2 1 11 14
Steel 1 1 15 17
Metal 2 - 26 28
Machine 2 4 56 62
Electric equipment 6 11 84 101
Transportation equipment 2 3 35 40
Precision equipment - 1 24 25
Misc. manufacturing 1 2 56 59
Trading 6 - 64 70
Department store / Super market 3 1 32 36
Various commercial 10 4 66 80
Life insurance 2 2 11 15
Non-life insurance 3 1 9 13
Finance 15 11 114 140
Real estate 2 2 40 44
Transportation / Warehouse 4 4 62 70
Telecom / Advertising 3 5 27 35
Electric / Gas 1 7 8 16
Services 20 15 142 177
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- 2 35 37
Total (# of Organizations) 108 96 1,134 1,338
Ratio (%) 8.0 7.2 84.8
Total (# of Organizations) 204 1,134 1,338
Ratio (%) 15.2 84.8
� No responses: 135 organizations
251
<Table 132> Purpose to measure the effectiveness of “ongoing monitoring” (by industry)
Unit: Number of organizations
Purpose
Industry
To manage IA
A efficiently
To enhance awareness and
evaluation of importance of
IAA
within organization
To facilitate / confirm
improvem
ent of IAA
To confirm level of internal
audit performed
Others
Total
Construction 2 2 2 1 - 7
Fishing / Food 4 3 7 5 1 20
Textile / Paper / Pulp - 1 1 1 - 3
Chemical 3 2 4 - 1 10
Medicine 2 2 3 1 - 8
Oil / Coal / Mining - 1 1 1 - 3
Rubber - - 1 - - 1
Glass / Soil & Stone 1 1 2 - - 4
Steel - - 1 - - 1
Metal 1 - 1 1 - 3
Machine 2 - - - - 2
Electric equipment 4 2 4 4 - 14
Transportation equipment - - 1 - 1 2
Precision equipment - - - - - -
Misc. manufacturing 1 - - 1 - 2
Trading 3 1 4 2 - 10
Department store / Super market 1 - 2 - - 3
Various commercial 5 7 8 5 - 25
Life insurance 2 - 2 1 - 5
Non-life insurance - 1 3 1 - 5
Finance 11 7 13 - - 38
Real estate 2 1 1 1 - 5
Transportation / Warehouse - 1 2 1 - 4
Telecom / Advertising 2 2 2 1 - 7
Electric / Gas - - 1 1 - 2
Services 10 4 12 7 - 33 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - - - - -
Total (# of Organizations) 56 38 78 42 3 217
Ratio (%) 53.3 36.5 74.3 40.0 2.9
� No responses: 3 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (105 organizations) * 100
� Others include “to confirm future direction”, “to respond to requests from parent company”, and “to
evaluate individual performance”.
252
<Table 133> Timing to measure the effectiveness of “ongoing internal assessments” (by industry)
Unit: Number of organizations
Timing
Industry
After each
engagement
Periodically At the next audit Total
Construction 1 1 1 3
Fishing / Food 5 2 - 7
Textile / Paper / Pulp - - 1 1
Chemical 2 2 1 5
Medicine 4 1 - 5
Oil / Coal / Mining 1 - - 1
Rubber 1 - - 1
Glass / Soil & Stone 1 1 - 2
Steel - - - -
Metal 1 1 - 2
Machine 1 1 - 2
Electric equipment 4 2 - 6
Transportation equipment 1 1 - 2
Precision equipment - - - -
Misc. manufacturing - 1 - 1
Trading 3 3 - 6
Department store / Super market 2 1 - 3
Various commercial 6 4 - 10
Life insurance 1 1 - 2
Non-life insurance 2 1 - 3
Finance 7 7 1 15
Real estate - 1 - 1
Transportation / Warehouse 1 2 1 4
Telecom / Advertising 2 1 - 3
Electric / Gas 1 - - 1
Services 10 6 3 19
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - - -
Total (# of Organizations) 57 40 8 105
Ratio (%) 54.3 38.1 7.6
� No responses: 3 organizations
253
2. External Assessment (Tables 134 to 143)
<Table 134> Understanding that “external assessments” must be conducted at least once every five years, which
is required by the Standards (by industry)
Unit: Number of organizations
Understanding
Industry
Understanding Not
Understanding
Total
Construction 34 33 67
Fishing / Food 31 19 50
Textile / Paper / Pulp 14 7 21
Chemical 58 31 89
Medicine 30 2 32
Oil / Coal / Mining 9 1 10
Rubber 3 2 5
Glass / Soil & Stone 7 6 13
Steel 10 7 17
Metal 16 14 30
Machine 37 29 66
Electric equipment 77 27 104
Transportation equipment 26 18 44
Precision equipment 14 11 25
Misc. manufacturing 33 27 60
Trading 35 39 74
Department store / Super market 13 25 38
Various commercial 43 40 83
Life insurance 14 2 16
Non-life insurance 11 2 13
Finance 89 66 155
Real estate 32 17 49
Transportation / Warehouse 41 27 68
Telecom / Advertising 29 8 37
Electric / Gas 13 5 18
Services 118 66 184
Independent administrative institution /
Special public institution / School
corporation / Association etc.
21 16 37
Total (# of Organizations) 858 547 1,405
Ratio (%) 61.1 38.9
� No responses: 68 organizations
254
<Table 135> Implementation of periodic “external assessments”, which is required by the Standards (by industry)
Unit: Number of organizations
Periodic External Assessments
Industry
Implementing Not
Implementing
Total
Construction 2 65 67
Fishing / Food 3 48 51
Textile / Paper / Pulp - 21 21
Chemical 5 85 90
Medicine 1 32 33
Oil / Coal / Mining - 10 10
Rubber - 5 5
Glass / Soil & Stone 1 12 13
Steel - 17 17
Metal 2 28 30
Machine - 65 65
Electric equipment 2 101 103
Transportation equipment 1 40 41
Precision equipment 2 23 25
Misc. manufacturing 2 52 54
Trading 6 68 74
Department store / Super market - 36 36
Various commercial 5 78 83
Life insurance 5 11 16
Non-life insurance 2 11 13
Finance 37 121 158
Real estate 2 45 47
Transportation / Warehouse - 67 67
Telecom / Advertising 5 32 37
Electric / Gas 2 16 18
Services 11 168 179
Independent administrative institution / Special
public institution / School corporation / Association
etc.
2 36 38
Total (# of Organizations) 98 1,293 1,391
Ratio (%) 7.0 93.0
� No responses: 82 organizations
255
<Table 136> Cycle of periodic “external assessments” (by industry)
Unit: Number of organizations
Cycle
Industry
Less than
1 year
Every
year
Every
2�4
years
Every 5
years
6 years or
more Total
Construction - 2 - - - 2
Fishing / Food 1 - - 1 1 3
Textile / Paper / Pulp - - - - - -
Chemical - 2 1 1 - 4
Medicine - - - - - -
Oil / Coal / Mining - - - - - -
Rubber - - - - - -
Glass / Soil & Stone - - - - - -
Steel - - - - - -
Metal 2 - - - - 2
Machine - - - - - -
Electric equipment - 1 - - - 1
Transportation equipment - 1 - - - 1
Precision equipment 2 - - - - 2
Misc. manufacturing 1 - 1 - - 2
Trading 2 2 - 1 - 5
Department store / Super market - - - - - -
Various commercial - 1 1 1 1 4
Life insurance - - 2 2 1 5
Non-life insurance - - 1 1 - 2
Finance 4 9 11 8 2 34
Real estate - - 1 1 - 2
Transportation / Warehouse - - - - - -
Telecom / Advertising - 4 1 - - 5
Electric / Gas - - - 2 - 2
Services 1 4 5 - - 10 Independent administrative institution / Special public
institution / School corporation / Association etc.
- 1 - - 1 2
Total (# of Organizations) 13 27 24 18 6 88
Ratio (%) 14.8 30.6 27.3 20.5 6.8
� No responses: 10 organizations
256
<Table 137> Timing of previous periodic “external assessments” (by industry)
Unit: Number of organizations
Previous assessment
(year)
Industry
2007 2006 �2005 Total
Construction 1 1 - 2
Fishing / Food 2 - 1 3
Textile / Paper / Pulp - - - -
Chemical 1 1 2 4
Medicine - - - -
Oil / Coal / Mining - - - -
Rubber - - - -
Glass / Soil & Stone - - - -
Steel - - - -
Metal 1 1 - 2
Machine - - - -
Electric equipment - 1 - 1
Transportation equipment - 1 - 1
Precision equipment 2 - - 2
Misc. manufacturing 2 - - 2
Trading 3 2 - 5
Department store / Super market - - - -
Various commercial 2 1 1 4
Life insurance 1 2 2 5
Non-life insurance - - 2 2
Finance 14 9 8 31
Real estate - 1 - 1
Transportation / Warehouse - - - -
Telecom / Advertising 4 - - 4
Electric / Gas - - 2 2
Services 4 3 3 10
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 1 - 2
Total (# of Organizations) 38 24 21 83
Ratio (%) 45.8 28.9 25.3
� No responses: 15 organizations
257
<Table 138> Method of “external assessments” (by industry)
Unit: Number of organizations
Method
Industry
By external reviewer Self-assessment with
independent validation
Total
Construction - 2 2
Fishing / Food 3 - 3
Textile / Paper / Pulp - - -
Chemical 4 - 4
Medicine - - -
Oil / Coal / Mining - - -
Rubber - - -
Glass / Soil & Stone - - -
Steel - - -
Metal 1 1 2
Machine - - -
Electric equipment 1 - 1
Transportation equipment 1 - 1
Precision equipment 2 - 2
Misc. manufacturing 2 - 2
Trading 4 1 5
Department store / Super market - - -
Various commercial 4 - 4
Life insurance 4 1 5
Non-life insurance 2 - 2
Finance 27 7 34
Real estate 2 - 2
Transportation / Warehouse - - -
Telecom / Advertising 5 - 5
Electric / Gas 2 - 2
Services 9 1 10
Independent administrative institution /
Special public institution / School
corporation / Association etc.
1 1 2
Total (# of Organizations) 74 14 88
Ratio (%) 84.1 15.9
� No responses: 10 organizations
258
<Table 139> Reviewer of “external assessments” (by industry)
Unit: Number of organizations
Reviewer
Industry
Audit
firm
Service
provider of
internal
audit
Peer reviewer (3 organizations or
more)
Others Total
Construction 1 1 - - 2
Fishing / Food 2 1 - - 3
Textile / Paper / Pulp - - - - -
Chemical 2 - - 2 4
Medicine - - - - -
Oil / Coal / Mining - - - - -
Rubber - - - - -
Glass / Soil & Stone - - - - -
Steel - - - - -
Metal 1 - - 1 2
Machine - - - - -
Electric equipment - - - 1 1
Transportation equipment 1 - - - 1
Precision equipment 2 - - - 2
Misc. manufacturing - 1 - - 1
Trading 3 1 - 1 5
Department store / Super market - - - - -
Various commercial 1 - - 3 4
Life insurance 2 1 - 2 5
Non-life insurance - 1 - 1 2
Finance 25 1 1 7 34
Real estate - 2 - - 2
Transportation / Warehouse - - - -
Telecom / Advertising 2 - - 3 5
Electric / Gas 2 - - - 2
Services 4 - 1 5 10
Independent administrative institution /
Special public institution / School
corporation / Association etc.
- - - 2 2
Total (# of Organizations) 48 9 2 28 87
Ratio (%) 55.2 10.3 2.3 32.2
� No responses: 11 organizations
� Others include “parent company”, “industrial association”, “consultant”, and “corporate lawyer”.
259
<Table 140> Involvement of the board (audit committee), kansayaku, and management regarding selection of
“external assessments” (by industry)
Unit: Number of organizations
Selection items
Industry
Selection of
method of
External
Assessments
Selection of
reviewer
Both method
of External
Assessments
and reviewer
Not involved Total
Construction 1 1 - - 2
Fishing / Food - 1 - 2 3
Textile / Paper / Pulp - - - - -
Chemical - - 2 2 4
Medicine - - - - -
Oil / Coal / Mining - - - - -
Rubber - - - - -
Glass / Soil & Stone - - - - -
Steel - - - - -
Metal - - 1 1 2
Machine - - - - -
Electric equipment - - - 1 1
Transportation equipment - - - 1 1
Precision equipment 1 - - - 1
Misc. manufacturing - - 1 - 1
Trading 1 - 2 3 6
Department store / Super market - - - - -
Various commercial 1 - 1 1 3
Life insurance - - 3 2 5
Non-life insurance - - - - -
Finance 1 11 13 8 33
Real estate - - 1 1 2
Transportation / Warehouse - - - - -
Telecom / Advertising 1 - - 4 5
Electric / Gas - - - 2 2
Services - 3 2 4 9
Independent administrative institution /
Special public institution / School corporation
/ Association etc.
- - - 2 2
Total (# of Organizations) 6 16 26 34 82
Ratio (%) 7.3 19.5 31.7 41.5
Total (# of Organizations) 48 34 82
Ratio (%) 58.5 41.5
� No responses: 16 organizations
260
<Table 141> Timing of implementation of “external assessments” if not yet implemented (by industry)
Unit: Number of organizations
Implementation year
Industry
2007 2008 2009 2010� Not yet
determined
Will not
implement Total
Construction - - 2 - 63 - 65
Fishing / Food - 2 2 - 44 - 48
Textile / Paper / Pulp 2 - - - 16 1 19
Chemical - 3 3 2 73 3 84
Medicine 1 2 1 1 25 - 30
Oil / Coal / Mining - - - - 10 - 10
Rubber 1 - - - 4 - 5
Glass / Soil & Stone - - - - 11 1 12
Steel - 1 1 - 15 - 17
Metal - 2 - - 24 1 27
Machine - 1 6 4 51 2 64
Electric equipment - 8 6 5 78 3 100
Transportation equipment - 1 - 1 35 3 40
Precision equipment - 1 1 1 19 1 23
Misc. manufacturing - 2 3 2 44 2 53
Trading - 5 2 1 59 - 67
Department store / Super market - 2 3 - 31 - 36
Various commercial - 5 4 2 62 1 74
Life insurance - - 1 - 10 - 11
Non-life insurance - 3 - 1 7 - 11
Finance - 6 6 2 103 3 120
Real estate - 2 3 3 35 1 44
Transportation / Warehouse - 3 2 1 58 3 67
Telecom / Advertising - 1 2 - 29 - 32
Electric / Gas - - - 1 13 1 15
Services 2 10 8 5 134 4 163 Independent administrative institution / Special public
institution / School corporation / Association etc.
- - 1 1 31 3 36
Total (# of Organizations) 6 60 57 33 1,084 33 1,273
Ratio (%) 0.5 4.7 4.5 2.6 85.2 2.6
� No responses: 53 organizations
� “2010�” includes “2010” (20 organizations), “2011” (6 organizations), “2012” (6 organizations), and
“2013” (1 organization).
261
<Table 142> Method of “external assessments” if not yet implemented (by industry)
Unit: Number of organizations
Method
Industry
By external reviewer Self-assessment with
independent validation
Total
Construction 17 30 47
Fishing / Food 25 16 41
Textile / Paper / Pulp 5 12 17
Chemical 34 37 71
Medicine 17 11 28
Oil / Coal / Mining 3 4 7
Rubber - 5 5
Glass / Soil & Stone 5 6 11
Steel 3 10 13
Metal 13 9 22
Machine 25 29 54
Electric equipment 33 56 89
Transportation equipment 14 17 31
Precision equipment 9 11 20
Misc. manufacturing 19 24 43
Trading 25 36 61
Department store / Super market 11 21 32
Various commercial 30 33 63
Life insurance 5 4 9
Non-life insurance 7 4 11
Finance 66 38 104
Real estate 22 17 39
Transportation / Warehouse 18 41 59
Telecom / Advertising 14 14 28
Electric / Gas 6 4 10
Services 68 78 146
Independent administrative institution /
Special public institution / School
corporation / Association etc.
16 12 28
Total (# of Organizations) 510 579 1,089
Ratio (%) 46.8 53.2
� No responses: 204 organizations
262
<Table 143> Reason why “external assessments” were not yet implemented (by industry)
Unit: Number of organizations
Reason
Industry
No budget
No tim
e
Managem
ent
does not find the
value
Not up to 5 years
cycle
Others
Total
Construction 10 8 18 25 11 72
Fishing / Food 10 6 17 15 10 58
Textile / Paper / Pulp 3 5 2 8 5 23
Chemical 20 22 25 26 13 106
Medicine 5 4 5 11 7 32
Oil / Coal / Mining 1 1 1 3 4 10
Rubber - 2 1 2 - 5
Glass / Soil & Stone - 6 3 4 1 14
Steel 2 2 7 6 4 21
Metal 8 9 9 7 4 37
Machine 17 10 21 20 15 83
Electric equipment 17 21 35 27 26 126
Transportation equipment 7 7 11 14 9 48
Precision equipment 5 3 6 11 3 28
Misc. manufacturing 7 9 18 19 11 64
Trading 11 12 21 21 14 79
Department store / Super market 8 5 8 7 11 39
Various commercial 25 14 24 23 12 98
Life insurance 3 3 2 - 6 14
Non-life insurance 6 6 2 1 3 18
Finance 27 33 35 26 18 139
Real estate 3 5 7 26 5 46
Transportation / Warehouse 7 16 16 24 14 77
Telecom / Advertising 6 9 6 13 5 39
Electric / Gas 3 4 3 5 2 17
Services 31 34 49 60 32 206 Independent administrative institution / Special public
institution / School corporation / Association etc.
5 6 13 12 3 39
Total (# of Organizations) 247 262 365 416 248 1,538
Ratio (%) 20.8 22.0 30.7 35.0 20.9
� No responses: 104 organizations
� Multiple answers were allowed. The ratio is calculated using the following formula: number of responses to
each item / number of usable responses (1,189 organizations) * 100
� Others include “not necessary / insufficient understanding”, “insufficient preparation”, “under
consideration”, “reviewed by parent company / regulatory body”, “insufficient information on external
assessments”, “considering cost / benefit”, etc.