1. “execute and audit… In one process Destruction(re-examining)
Creating(re-proposing)
What are we going to do?

2. *Is that rational to make a position for “auditor”?
One-tier system
Council system
“board” of directors
shareholders
Mandate
or trust
*Is that rational to make a position for “auditor”?

3. Two types of auditing managerial auditing legality auditing
Accounting auditing
legality auditing
Appropriateness
auditing

4. ◆ human mechanism in joint stock corporation
Directors
Inside
Executive director
Outside
Non-executive
director
Officers
President, vice-president
Hierarchic
relationship
“general manager”
Persons who has some authorities
to do some act for the corporation

5. Directors and Board Board（brain） Officer director（brain cell） director
Also get this post…
・smooth management

6. × But in Japan… Officers audit They Never Supervise!
President、vice-presidents、
Hierarchic relationship ×
audit
They Never Supervise!
Subordinated person
Former Employees

7. Directors Officers Outside Outside Inside Outside Inside Outside
Even they get this position…

8. Corporation with committee
More than half must be outside
Board
Committee
Committee
Effective supervising
executives

9. ◆ Supervisory Committee
inside
outside
Directors
inside
outside
inside
outside
inside
Officers
executives