Audit & Financial Review
Accounting Audit & Financial Review Services in Japan
JMC can provide various accounting audit services and financial review services in cooperation with its partners.
For a Japanese-style audit, we partner with our Japanese CPA network to perform the audit by Japanese standards. For U.S.-style financial reviews, we work with our Japanese CPA partners to perform the work by the audit procedure and checklist provided by our client’s headquarters.
Why Choose JMC to Perform Your Financial Audit?
- Flexibility to respect clients’ procedures and needs
- The professionalism of our CPA network, accountants, and financial consultants
- Bilingual English-speaking consultants
- Integrity and completeness of the engagement
Integrity and Completeness of the Engagement
An audit is an objective examination and evaluation of the financial statements of a company to determine whether they are keeping accurate financial records. An audit may be run internally, may be conducted by an outside entity, or may be required by taxation authorities. In some cases, a taxation authority may conduct a financial audit because they believe a company is keeping inaccurate financial records.
In Japan, some companies may be legally required to conduct audits, such as companies with more than 500 million JPY in capital or more than 20 billion JPY in total liabilities. A voluntary financial review can also make sense for companies that wish to be sure their financial records are accurate. No matter why you choose to conduct a financial review for your business in Japan, it is a good way for any company to get an accurate accounting of their financial statements so they can develop an appropriate strategy for the future.
What is an Audit & Why is it Necessary
- External Audit – This type of financial review is conducted by an outside entity, such as a CPA firm. The advantage of having an outside entity perform your audit is that it will remove any internal bias that could lead to an unintentional misstatement of your finances. JMC can offer accounting audit services for foreign businesses in Japan through our network of CPA partners.
- Internal Audit – This type of audit is conducted by people employed by the company. An internal audit will be conducted by the company’s accounting standards. Regular internal audits are a good idea because they allow management to make necessary changes that will put them on a more solid footing for the future.
- Audit by the Taxation Authorities – In most cases, an audit by the Japan tax authorities is a sign that the company is believed to have intentionally misstated its financial records. This could mean serious legal consequences, so it is best to conduct an internal or third-party financial review before the law becomes involved.
If you are operating a Japanese business and do not have the resources to audit internally, taking advantage of accounting audit services can ensure your financial records are accurate. Get in touch with JMC for financial services in Japan as well as other services for foreign businesses. With our accounting audit services, you will know your financial records are accurate so that if you are audited by the tax authorities, you will be able to rest easy. Call us if you need to hire an accountant in Japan, or if you need help with payroll, office setup, and so much more.
Disclaimer: The information provided here is for illustrative purposes only. JMC cannot be held liable for any decisions made based on this information. For any advice regarding accounting audit services in Japan, a licensed professional should be consulted.