The new Internal Audit Department has been established within Daiwa Securities Group Inc. and answers directly to the Board of Directors. The role of this department is to consolidate internal control and to have jurisdiction over internal audits within Daiwa Securities Group Inc. as well as to coordinate with business planning and internal auditing departments within Group companies to plan and conduct internal audits.
In April 2003, the Group adopted its Internal Audit Rule, clearly indicating basic points to be covered in internal audits. The goal is for these audits to be as smooth and effective as possible. Additionally, an Internal Control Committee, headed by the Daiwa Securities Group Inc. CEO, was formed in July 2003 as a sub-committee of the Management Committee (currently the Executive Committee).
The Daiwa Securities Group will continue to step up its systems for assuring that 1) work is efficient and effective, 2) financial reporting is reliable and 3) laws and regulations are obeyed.