Our Audit Service in Japan

Audit Service is a part of an assurance service. Our audit service also includes Review Service. Audit service is mainly a financial statement audit with internal control assessment. You would require a financial statement audit to put trust and transparency. If your subsidiary in Japan is not "a Large company" in accordance with Japan Company Act, the subsidiary is not required a statutory audit. Even then audit and review of financial information are required by the region head or the parent company in order to monitor the subsidiary activity and to ensure compliance and transparency.

Shirokane СРА Firm Could

We provide assurance services for subsidiaries and branches in Japan. We understand you need a Big 4 audit firm when your company is a significant component in your group globally. However, if not, Shirokane CPA Firm would be recommended as an independent financial auditor. We could propose truly rational audit fee and provide you appropriate audit procedures to ensure trust and transparency.

We conduct our audit and quarterly review in accordance with International Audit Standards and the financial reporting framework your group needs. We pursuit efficient and effective audit procedures by the complete risk-approach.

Japan Statutory Audit

Most Japan subsidiaries do not need Japan statutory audit because Japan statutory audit on companies is required just by Japan Company Act and Financial Instruments and Exchange Act. In either case of those, if it needs Japan statutory audit, your subsidiary must be a not small and mid-sized company.
Auditing System (Japanese Institute of CPA)

FAQ

Quote of Japan Company Act

Companies Act (Part I, Part II, Part III and Part IV (Tentative translation))

Article 2 In this Act, the meanings of the terms listed in the following items shall be as prescribed respectively in those items:
(vi) "Large Company" means any Stock Company which satisfies any of the following requirements:
(a) that the amount of the stated capital in the balance sheet as of the end of its Most Recent Business Year (hereinafter in this (a) and (b)| below referring to the balance sheet reported to the annual shareholders meeting under the provision of Article 439 in cases provided for in the first sentence of such Article, and referring to the balance sheet under Article 435(1) in cases where the first annual shareholders meeting after the incorporation of the Stock Company has not yet been held) is 500,000,000 yen or more; or
(b) that the total sum of the amounts in the liabilities section of the balance sheet as of the end of its Most Recent Business Year is 20,000,000,000 yen or more;

Article 328
(1) A Large Company (excluding a company which is not a Public Company, a Company with Audit and Supervisory Committee, and a Company with Nominating Committee, etc.) shall have a board of company auditors and a financial auditor.
(2) A Large Company which is not a Public Company shall have a financial auditor.

Article 329
(1) Officers (meaning directors, accounting advisors, and company auditors. The same shall apply hereinafter in this Section and in Article 371(4) and Article 394(3)) and financial auditors shall be elected by resolution of a shareholders meeting.

Article 330
The relationship between a Stock Company and its Officers or financial auditors shall be governed by the provisions of the mandate.

Article 436
(2) At Companies with Financial Auditor(s), the documents listed in the following items shall be audited by the persons listed in each such item pursuant to the applicable Ordinance of the Ministry of Justice:
(i) The Financial Statements and annexed detailed statements accompanying them which are referred to in paragraph (2) of the preceding Article: company auditors (or Audit and Supervisory Committee for a Company with Audit and Supervisory Committee, and audit committees for Companies with Nominating Committee, etc.) and financial auditors;