SERVICES

Statutory audits

Audits under the Financial Instruments and Exchange Act

Listed companies must undergo these statutory audits, which are designed to protect investors. These audits not only certify financial statements for the fiscal year, but also entail interim review and internal control audits in compliance with the Internal Control Reporting System (J-SOX).

Audits under the Companies Act

These statutory audits of companies with at least 500 million yen of capital or 20 billion yen of debt are conducted to protect shareholders. Audit certification of financial statements for shareholders is required.

Voluntary audits

Voluntary audits are conducted at the request of external stakeholders on a voluntary basis to ensure financial statements provide an appropriate level of credibility.

AUP: Agreed Upon Procedures

Support for back-office digitalization

The trend toward digitalization of corporate back-office operations and internal controls is accelerating in support of swift management that responds to change. The recent introduction of remote work has significantly impacted the workplace environment. Visualization of every transaction and operation, together with improved searchability of information, is expected to improve work efficiency and strengthen internal controls.

We support the digitalization of internal approvals and workflows, the storage of documents and evidence, and the introduction of electronic contracts with customers. We can also provide advice on improving the efficiency of financial settlement and disclosure systems while taking linkage with general accounting systems into consideration.

Management services

Internal control construction support service

One of the key themes of recent listing examinations is the need to confirm the development and operational status of internal controls, especially those relating to financial reporting. At examinations, explanations are required with the Internal Control Reporting System (J-SOX) in mind. Even if internal control systems are in place, it takes time to implement them because they must permeate the everyday work of the accounting department and other departments in charge. Furthermore, even after the initial listing, companies that have undergone organizational restructuring or acquisitions must review or revise their internal controls. We support clients in building more effective and efficient internal controls according to their size, circumstances and operations.

After listing, companies are required to comply with J-SOX. Then, following a certain exemption period, they are subject to internal control audits by auditing firms. The unique evaluation methods and records of J-SOX have many technical aspects.

We perform internal control evaluation on behalf of companies during the year of listing application or within a certain period after the initial listing. We also provide evaluation know-how and evaluation materials tailored to the company’s actual circumstances.

Development and operational support of internal audit system

One of the internal governance functions receiving attention in recent listing examinations is the development and operation of an internal auditing system. We provide advice on audit plans and reports (records) based on the focus of underwriter’s examinations and the standards of other recently listed companies.

Disclosure support services

Support for monthly and interim closing and consolidated accounting closing processes

Before the listing examination, it is necessary to prepare a financial close process within a specified short period on a standalone and consolidated basis. We identify bottlenecks early in the financial close process and propose concrete ways to resolve the issues.

Statutory disclosure/timely disclosure process advisory

Before the listing review, it is necessary to smoothly prepare legal disclosure documents, establish a system for timely disclosure, and operate with post-listing operation in mind.

Based on the company's situation, we provide creation timelines, divide up responsibilities, discuss common matters, etc., as well as support the creation of a system and related support materials

Support for strengthening accounting and accounting literacy

After listing, accounting procedures and disclosures specific to listed companies increase. We deepen your understanding of these accounting procedures and support the preparation of useful materials related to disclosure so you can promptly reflect them in disclosure.

Issue identification through IPO
readiness assessment

First we identify current issues related to internal management systems and financial reporting systems. Then we present solutions, priorities, and timelines for development and operation.

Support for resolving issues identified in short-term research

A wide range of issues must be resolved in IPOs. These include capital policy planning, organization of affiliated companies, arrangement of related party transactions, and the establishment of regulations for listed companies. We understand the client’s situation, propose specific solutions, and support implementation of the solutions.

Support for voluntary audits in compliance with the Financial Instruments and Exchange Act for initial listing purposes

For an initial listing, in addition to the listing application period, an audit report by an auditing firm for the last two years is required. We conduct voluntary audits with the same auditing methods and quality level as audits pursuant to the Financial Instruments and Exchange Act for the purpose of initial listing.

Support and review of underwriter’s examination

During the listing application period, companies must answer diverse questionnaires from securities companies that serve as examination materials. Based on our connections with securities companies, and the experience of our members who recently took their examinations, we help clients prepare responses and provide reviews.

Support and review of listing application documents

Listing application documents are similar in volume to post-listing securities reports and contain a wide range of content. Our members familiar with recent listing application documents for various industries support application preparation and review.

Advice on creating IR materials after listing

After listing, a large number of IR materials (timely disclosure materials) are disclosed and disseminated in a timely manner. These documents can send a powerful message to investors, depending on the structure and content, and can have an impact on the client’s corporate value. We provide advice on IR material preparation based on the knowledge of experienced IPO executives.