OIST Graduate University
Policy, Rules & Procedures
Authority:
Approved by the Auditors

Chapter 9: Auditors’ Audit
9.1 Policy
Audits by the Auditors are conducted at the Okinawa Institute of Science andTechnology School Corporation (hereinafter referred to as “School Corporation”) inaccordance with Article 15 of the Okinawa Institute of Science and Technology School
Corporation Bylaws [Link]. Audits by the Auditors are conducted to promote legitimate
and efficient business and administrative operations of the School Corporation as wellas proper accounting.
9.2 General Considerations
9.2.1 Standards of Audit Activity
Audits by the Auditors are conducted based on the relevant laws, Bylaws and School
Corporation’s policies and regulations that are stipulated from those laws. Whenimplementing the audit activity, the Auditors shall respect the autonomous nature of
the education and research at the University.
9.3 Responsibilities
9.3.1 General Employees
Employees of audited sections/divisions must cooperate with the audit activities toensure efficient and productive implementation of the audit.
9.3.2 Person in Charge of Each Sections/Divisions
When important issues or irregular incidents arise in the workplace, the concerned
responsible personnel of the School Corporation or the University must immediately
report to the Auditors orally or in writing.
9.3.3 Audit EmployeesWith the approval of the CEO, the Auditors may receive assistance from employees
1ch09_auditor’s-audit_en_20230801_clwho fall under the Chief Internal Audit Officer (hereinafter referred to as “CIAO”) or
other employees and direct them to assist in necessary audit activities.
9.3.4 Duties of the Audit Employees
Employees engaged in Audit activities stipulated by 9.3.3 may not disclose any
information they learn or come across during the audit activities to other employees
who are outside of the audit team or any external contacts.
9.3.5 Duties of the Auditors
9.3.5.1 Preparing Audit Report
Every fiscal year, the Auditors must prepare an Audit Report and submit the reportto the Board of Governors (BOG) and the Board of Councilors (BOC) within twomonths after the end of preceding fiscal year.
9.3.5.1.1 For a Special Audit, the report must be submitted to the CEO within amonth after the implementation of the audit.
9.3.5.1.2 Auditors may add opinions in the report when deemed necessary.
9.3.5.2 Meeting Attendance and Expression of Opinions
Auditors may attend BOG, BOC and other important meetings and express
opinions. When the Auditors are unable to attend these meetings, they may receive
explanation of the meeting agendas from the CEO/President, the Vice
CEO/Provost or concerned employees and view relevant documents.
9.3.6 Duties of the CEO
The CEO must deliberate and assess the Audit Report and the Auditors’ opinions andthen provide a remedial action plan. Measures and actions taken to correct thediscrepancies and the resulting effects must be provided in writing to the Auditors.
9.4 Procedures
9.4.1 Scope
Auditors conduct audits on the overall operation and asset condition of the School
Corporation. Specifically, audits shall be conducted on the following items:2

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(a) Condition of enacting and practicing the relevant laws and school policies andregulations.
(b) Business and management condition of the School Corporation and University.
(c) Administrative performance condition of overall system and organization of theSchool Corporation and University.
(d) Personnel management condition.
(e) Implementation status of budgets, business plans and financial plans.
(f) Expenditure and management conditions of cash, etc.
(g) Condition of financial supply-demand and the management.
(h) Property acquisition, management, and disposal conditions.
(i) Safety management conditions.
(j) Other issues necessary for the achievement of healthy and stable operation ofthe School Corporation.
9.4.2 Types and Methods of Audit
There are two types of audits: Periodical Audits which are conducted periodically,and Special Audits which are conducted on an as-needed basis.
9.4.2.1 Document Audit
Only documents that are created and managed by the School Corporation will be
subject to audits. When implementing document audits, documents pertaining toaccounting, contracts, and other necessary forms are subject of Document Audit.
This also includes but is not limited to all the logs and records from the School
Corporation’s computer systems.
9.4.2.2 Field Audits
Audits may also be conducted at the employee’s workplace, where employees areinterviewed and explanations may be requested.
9.4.3 Implementation Procedure
Audits by the Auditors shall follow the procedures stated in the Chapter unlessotherwise stipulated separately.
9.4.3.1 Auditors must prepare audit plans every fiscal year and inform the CEO in
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ch09_auditor’s-audit_en_20230801_cladvance. However, Special Audits are conducted whenever deemed necessary, andtherefore no advance notice is required.
9.4.3.2 The head of a section/division that will be audited will receive a written
notice of a Periodical Audit in advance.
9.4.3.3 In case of a Special Audit, no advance notice is issued.
9.4.3.4 The head of an audited section/division is responsible for cooperating fora smooth conduct of the audit activity. The includes but is not limited to preparing
documents pertinent to the items on the advance notice form.
9.4.4 Documents to be Audited and Sent to the Auditors
Documents stipulated in Bylaws Article 31 [Link] must be sent up to the Auditors forthe purpose of audit. The following documents must also be sent up to the Auditors
after they have been approved by the determining authority (Kessai) for they are
crucial in assessing the condition of the School Corporation’s administrativeoperation.
(a) Documents concerning enactment, revision and abolition of the Bylaws,regulations, stipulations, and other policies of the School Corporation(b) Documents requesting for an approval or authorization or other important
documents prepared for the Prime Minister and the Minister of Education,Culture, Sport, Science and Technology(c) Documents concerning the determination of the basic policies for the School
Corporation’s business and administrative operation(d) Important documents concerning contracts(e) Important documents concerning lawsuits and petitions(f) Important documents for submission to the Board of Audit(g) Important documents concerning an approval or authorization from the PrimeMinister or the Minister of Education, Culture, Sport, Science and Technology(h) Important documents issued from Government offices other than the Cabinet
Office or Ministry of Education, Culture, Sport, Science and Technology(i) Other important documents, both issued and received, concerning School4

ch09_auditor’s-audit_en_20230801_clCorporation’s operation
9.5 Contacts
9.5.1 Policy Owner: Auditors

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