Sony is a Japanese multinational conglomerate corporation headquartered in Tokyo,

established in 1946. Its diversified business includes audio, home video game consoles,
communications, key device, and information technology products for the consumer and
professional markets. The Company's other businesses include music, pictures, computer
entertainment, and online businesses. Proportion of sales by its products category, for those
directed straight to consumers, the majority of sales were made from Televisions (27.4%),
followed by Games (24.3%), Personal and Mobile Products (23.6%), Digital Imaging
(16.3%), and last one Others (0.5%). In addition, another segment were generated from
Professional Device and Solutions, which consisted of Semiconductors (38.9%),
Components (30.7%), Professional Solutions (29%), and Other (1.4%). In 2012, Sony
decided to transform its corporate strategy, which designed to accelerate growth and create
new values, namely strengthening its core area, turning around the television business,
expanding the business, accelerating innovations, etc. These initiatives were seen as ways
in revitalizing and fostering growth in the electronic business. Under the Companies Act of
Japan, “Company with Three Committees” adopted as corporate governance system of
Sony that required them to have three committees: the nominating committee, the audit
committee and the compensation committee.

The nominating committee is responsible to determine the content of proposals regarding

the appointment and dismissal of directors. Furthermore, the audit committee assesses the
eligibility and the independence of the independent auditor and the adequacy of the audit by
receiving the notice that the independent auditor provides regarding maintenance of systems
to ensure the execution of its duties under the quality control standard for audit. Last but not
least, the compensation committee whose responsibility to set policy on the content of
individual compensation for Directors, Senior Executives and other officers. In order to
conducts its internal audit, the audit committee collaborated with the risk & control
department functioned to maintain the governance in order to strengthen its management
structure, promote efficiency of management, and maintain and avoid any loss of material
assets, including its brand image, by evaluating the effectiveness of the internal control
system and risk management structure of Sony through independent and objective audit.
Internal audit process began with the request as well as concern that bubbled the
stakeholders both in headquarters and region, thus risk assessment was conducted with the
aim identifying and analyzing potential events that may negatively impact individuals, assets,
or the environment and making judgments on the tolerability of the risk while considering
influencing factors by taking into consideration global key risks and regional risks.
Subsequently, typical audit process consisted of planning, fieldwork and reporting with
guidance of Standard Audit Program, Computer Aided Audit Tool to automate the IT audit
processes, and external resources. Afterwards, the committee prepared consolidated
reporting that highlighted the benchmarking, good practices and issues. The results, which in
forms of reporting were delivered to the headquarters and region of Sony. In addition, Sony
also conducted audit collaboration, which referred to joint audit team with diversified experts
from regional internal audit offices. Moreover, the collaboration with regional internal auditors
in audit activities, namely scheduling, risk/scope assessment, internal knowledge sharing.