TOKYO, Mar 30 (Pulse News Wire) – Fulltech Co.ltd. (6546.T) disclosed today that its internal control report for the fiscal year ending December 2025 identified significant deficiencies related to financial reporting controls.
According to the report filed with the Hokkaido Bureau of Finance, the issues stem from inadequate validation of cost calculations during the implementation of a new core system introduced in July 2025 and fully operational since November 2025. The primary causes include insufficient general IT controls and overall internal controls. Specifically, there was ambiguity around the management department responsible for interfacing with the system vendor and a lack of experienced personnel, leading to ineffective execution of control procedures based on established regulations. As a result, testing and verification of the costing functions were incomplete, causing delays in the final accounting process.
Additionally, despite having a structured decision-making framework for major system implementations, the company's judgment lacked sufficient due diligence due to the aforementioned IT control weaknesses, further contributing to the delays. In response to these findings, Fulltech plans to appoint a clear IT control manager within the Management Department and designate the Information Systems Division as the oversight entity for the new core system. Enhanced monitoring by senior management will also be implemented to strengthen the overall control environment. The company stated that while the deficiencies did not impact the consolidated financial statements, they recognize the importance of addressing these issues promptly to ensure robust internal controls moving forward.
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