Honda Motor Company included a separate Corporate Governance Report (CGR) in its 2017 Annual Report. First, the CGR states, among other things, the following: The company strives to enhance corporate governance as one of the most important tasks for its management, in order to achieve several aims, including strengthening the trust of the shareholders and investors, customers and society. The company is adopting an "Audit and Supervisory Committee" system in order to reinforce the supervisory function of the Board of Directors and ensure the prompt decision-making.The company will ensure transparency of its management. Second, the CGR explains in detail the risk factors relevant to Honda Motor Company.

Required:

1. Access the 2017 Annual Report of Honda Motor Company (https://global.honda/sustainability/cq_img/report/pdf/2017/Honda-SR-2017-en-all.pdf), which includes the Corporate Governance Report, and discuss the way in which Honda Motor Company attempted to establish a high level of corporate governance.

2. Explain the possible link between corporate governance and auditing.