Japan plans oversight of foreign audit firms
20 Oct 2007
The Japanese Financial Services Agency (FSA) has invited comments on proposed regulations (known as Proposed Cabinet Orders and Cabinet Office Ordinances) that would implement revised Certified Public Accountants Laws that were passed by the Diet (Japanese parliament) in June 2007. The laws take effect in April 2008.
The revised laws include measures (a) to enhance the quality control and governance of, and disclosures by, audit firms; (b) to reinforce the independence of auditors; and (c) to strengthen oversight on auditors.
The revisions also include measures to introduce FSA oversight of foreign audit firms. Because the regulations affect foreign firms, the FSA has prepared an English Translation of the Proposed Notification Requirement for Foreign Audit Firms (PDF 265k) and asks firms to comment by 29 October 2007. The entire proposed regulation is now on public consultation and available in Japanese on the FSA's Website.
