Component audit

Japanese subsidiaries of companies listed outside Japan may be subject to audits as part of a group consolidated financial statement audit. In such cases, the group auditor typically sends instructions to the auditors of each component unit (subsidiary, etc.) in each country, and the local component auditors then conduct audits of those components based on those instructions.

As a component auditor, we respond to instructions from the group auditor in each country. We have ample experience in working with the Big 4 as well as other group auditors, and the locations of group auditors (i.e. the location of the client’s ultimate parent company) are diverse, including Europe, China, and the United States.

For client groups, the cost of auditing small component units is a burden. Even if the group itself has a contract with a Big 4 or an audit firm of a similar size, there is a cost advantage in selecting us as the component auditor for the Japanese subsidiary. We provide high-quality audit services in accordance with international auditing standards at reasonable prices.

Statutory audit

Japanese Companies Act requires that companies with capital of 500 million yen or more or total liabilities on the balance sheets of 20 billion yen or more have their financial statements audited.

Several of our clients, including a Japanese law corporation that owns a certain amount of real estate with overseas capital, require this audit.

Clients are also required to understand and comply with Japanese Companies Act, so we provide the maximum support we can within the scope of maintaining our independence as auditors.