Japan’s Certified Public Accountants And Auditing Oversight Board And Financial Services Agency Publish “A Framework For Inspection/Supervision Of Foreign Audit Firms, Etc”

The revised Certified Public Accountants Act, which became effective in April 2008, introduced notification requirements, accompanied with administrative actions such as instruction, mandatory collection of reports and on-site inspection, for foreign audit firms, etc.

On June 12, 2009, the Certified Public Accountants and Auditing Oversight Board (CPAAOB) and the Financial Services Agency (FSA) posted “Draft Framework for Inspection/Supervision of Foreign Audit Firms, etc.” for public consultation on CPAAOB and FSA websites, in order to establish policies and specific procedures. The consultation period was from June 12 to July 13, 2009.

As a result of the public consultation, the CPAAOB and the FSA received approximately 80 comments from ten organizations. The CPAAOB and the FSA appreciates those who took the time to examine the draft framework for responding to the consultation.

Taking into account the comments received, the CPAAOB and the FSA hereby publishes “A Framework for Inspection/Supervision of Foreign Audit Firms, etc.”