Along with introducing the most advanced audit methods developed by the member firms of Deloitte Touche Tohmatsu Limited, Deloitte has prepared services which address the business models advanced in other countries.
Along with introducing the most advanced audit methods developed by the member firms of Deloitte Touche Tohmatsu Limited, Deloitte has prepared services which address the business models advanced in other countries. We utilize the experience and expert knowledge gained from being responsible for a vast number of domestic audits in all business sectors. As well as implementing efficient audits which focus on the essential points, we have provided numerous clients with advice on making internal controls and management more efficient. Making full use of the merits of scale, we form expert groups in specific fields and thereby achieve a concentration of deep knowledge which seeks to address a variety of increasingly complex and sophisticated transactions.
Statutory audits are implemented in respect to firms and associations which are obliged by law, such as the Financial Instruments and Exchange Act and the Companies Act, etc., to be subject to an audit. The content of financial statements prepared by firms, etc. is checked by certified public accountants or auditing firms who are professionals and third parties so that the statements are at a level which can be used without problems by the user. Following the business year starting in April 1, 2008, internal control audits, integrated audits and a quarterly reporting system have been applicable to listed companies.
Although being subject to an audit is not obligatory under the law, voluntary audits are undertaken at the judgment of shareholders and management to have experts judge the appropriateness of the financial statements prepared by firms, etc. Being subject to an audit is a method to increase creditworthiness in respect to financial institutions and trading partners. Additionally, because advice can be gained in the audit process concerning the status of internal controls and whether efficient management is being engaged in, being subject to an audit is effective from the perspective of business management. Voluntary audits are often used by the subsidiary of a listed company, etc. at the wish of the parent company. Additionally, firms with the objective of IPO in the near future use voluntary audits to undertake internal corporate preparations as a prior stage to this offering.
Audit of English language financial statements
When listing shares or issuing bonds in overseas markets, corporations are required to prepare financial statements in accordance with the relevant countries standards to seek the judgment of investors. We undertake an audit of financial statements prepared in accordance with, for example, the U.S. or international accounting standards and express an opinion as to whether the statements were properly prepared in light of the relevant standard. As a high level of knowledge concerning these accounting standards is required, an expert group assumes responsibility for those services. In addition to this, there are cases where corporations prepare and announce financial statements in English pursuant to Japanese standards for overseas investors. In this case, as it is necessary to prepare a financial statement reorganized in a presentation method which foreign investors are familiar with, we undertake audits regarding the appropriateness of that method and express an opinion.