Japan Tax Guide - for Beginners -

Statutory audit


タグ: Japan Tax Guide - for Beginners -

Question: All corporations are subject to audit in Japan?

Answer: Not all corporations. Companies Act requires that certain corporations must be audited every fiscal year.

  According to Companies Act, the large-scale kabushiki-kaisha (KK), that has capital of JPY 500 million or more, or liability of JPY 20 billion or more, is responsible for statutory audit by CPA or audit corporation.

 Other than the case above, the company has to be audited as long as it establishes an audit committee or a nominating committee. If the company voluntarily establishes an accounting auditor, it is also subject to audit.

  Regarding disclosure of financial statement, Companies Act provides that any companies shall give publicity to the financial results. It is popular for the Japanese companies to make an announcement on the government gazette, newspapers or company website, although it seems that small and medium-sized companies often disregard the rule.  

For more detail, please feel free to contact TOMA Consultants Group.


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Question: 日本ではすべての会社が監査を受けなければなりませんか?

Answer: すべてではありません。会社法では、一定の会社について毎年監査が必要であるとされています。