Finance dept. in Japanese companies (vol.3)

The Company Code (Japanese law of corporations) requires to appoint a corporate auditor (article 327) if a board of directors is implemented.

In most of cases someone in head office or a regional office, like a head of internal control or a legal council is appointed as a corporate auditor.
Some companies have a policy that a finance personnel in head office or a regional office cannot be an auditor, due to the segregation duty.

A corporate auditor is to audit financial statements based on Japanese GAAP including income statement, balance sheet, business report and supplemental schedules.

Since it is not practical for an auditor to come to Japan for his/her field work, he/she just relies on an internal audit if applicable.
If not, he/she relies on an independent auditor who performs a consolidation audit.

As a licensed CPA in Japan, Yoda Accounting Office also performs such audit services. Please contact if needed.

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