 Japan is no exception to the global trend of re-invigorating corporate governance. Recent corporate frauds have accelerated the movement towards corporate control enhancements. J-SOX was enacted as law when the Financial Instrument and Exchange Law was passed by Japan's Congress on 7 June 2006. The Business Accounting Council of the Japanese Financial Services Agency, a Japan regulatory body equivalent to the SEC has released the final report on the Standards the Implementation Guidance for Management Assessment and Audit of Internal Control over Financial Reporting ("ICFR").
Under J-SOX, management will need to assess the design and operating effectiveness of ICFR and report the results in its filings. The independent auditor will provide an attestation of the effectiveness of management's assessment.
The attached newsletter is intended to draw your attention to the impending compliance requirements and also to provide assistance to you to address the tough questions you and your directors may face. You are also welcome to contact us to arrange a meeting to discuss further. You may contact our professionals as identified in the newsletter.
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