Japan’s audit firms to increase scrutiny, warns accountancy institute

Corporate books in Japan do not face as much scrutiny as their US or European corporate counterparts whose audting firms spend two to three times as long when carrying out audits. That?s the view of Tsuguoki Fujinuma, the chairman designate of the Japanese Institute of certified public accountants (JIPCO).

Japan’s accounting firms should spend more time checking corporate earnings and balance sheets, he says, and regulators in Japan may be given the power to penalize underperforming audit firms by the new Japanese accounting oversight board.