Outline of Audits on Establishment and Implementation of TORF
QUICK Benchmarks Inc.
Article 22 of TORF Operational Rules (“Rules”) requires that, on an annual basis, in principle, the QUICK Benchmarks Inc. (QBS) shall be subject to internal and external audits on “the execution of the TORF calculation and publication operations, establishment and implementation of processes/procedures and frameworks required under the Rules and the review of the TORF administration framework (including reviewing the definitions and calculation methods)”.
Internal audit by the Internal Audit Office and the assurance engagement for the IOSCO Principles Compliance Framework as external audit by Deloitte Touche Tohmatsu LLC were recently performed. We hereby report the overview of internal and external audits.
1. FY 2021 Internal Audit
(1) Auditors: QBS Internal Audit Office
(2) Effective date: September 10, 2021
(3) Audit subjects: Governance framework, Benchmark design, Establishment of benchmark calculation methodology, Framework for accountability
(4) Audit result: There were no matters that had a significant impact on the implementation of the index calculation as the Audit result.
2. FY 2021 External Audit
(1) Practitioner: Deloitte Touche Tohmatsu LLC
(2) Effective date: Period between May 24, 2021 to November 30, 2021
(3) Audit scope: IOSCO Principles Compliance Report
(4) Applicable standard: “International Standard on Assurance Engagements 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information”
QBS will seek to maintain and enhance the transparency, robustness and reliability of the TORF and will implement measures so that the TORF will continue to be internationally recognized as the benchmark that is compliant with the IOSCO Principles and to be widely used as one of the major JPY interest rate benchmarks.
 The assurance engagements refer to those defined in 12. (a) of the “International Standard on Assurance Engagements 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information”. These assurance engagements have limitations. This assurance engagement was performed for the periods covered above and is not intended to predict the future. Details are covered in “Section 3. Independent Assurance Report” by Deloitte Touche Tohmatsu LLC.
 In “Section 4. QUICK Benchmarks’ Responses to Comply with IOSCO Principles’ describes QBS’ establishment and implementation of appropriate framework to comply with the IOSCO Principles for the periods covered above. In “Section 2. Management’s Statement”, President & CEO states that Section 4. Is fairly presented.