A large number of foreign-affiliated companies are there in Japan, and most companies might not be audited or verified by external third parties. However, in such small or middle-sized foreign capital companies, it is not unusual that dishonest employees cause fraud action due to a lack of monitoring system.

Fraud actions may be prevented by the third party’s audit or verification. For example, the audit procedure in which external auditors send a confirmation letter to financial institutions or customers to check the balance on the closing date works as a deterrent to prevent fraudulent acts such as embezzlement of funds and prevents unnecessary adhesive relationships with business customers.

However, it is not required for such foreign-affiliated companies to ask big firm voluntary audit unless the statutory audit is necessary. It may be rather desirable to rely on individual CPAs if you would like to ask a voluntary audit for the purpose of investigation.

We provide audit services to investigate fraud indication for the foreign capital company having concerns about the subsidiary’s operation while grasping the parent company’s intention. It is possible to perform audit procedures as part of referred work or to conduct internal audit procedures under the instruction of the parent company.

Our Advantageous Points

If unlisted entity asks voluntary audit although it is not statutorily required, the following matters should be taken into consideration.

  • Whether auditors can give detailed advice to the client in terms of establishment of internal control
  • Whether auditors can make a proposal about countermeasures to avoid frauds other than audit service Can you respond to detailed advice on internal control construction?
  • The validity of audit fee level (whether it is inappropriately expensive)

We will give the best proposal after grasping the client’s needs and requests. If you consider voluntary audit service to prevent employee fraud and enhance transparency of internal control, please contact us.

Examples of the company encouraged to reach out

  • The company which does not currently take an external audit, however, requested by the parent company overseas to be verified by the third party in order to enhance the reliability of financial statements, and we would like them to be verified by a third party.
  • The company considering the establishment of a management system through external verification to prevent fraud in advance.
  • The company which would like to take an external audit, however, hesitant to ask Big audit firm because of an expensive audit fee.
  • The company considering external audit by professionals since it is effective to introduce audit system by CPAs for the purpose to restrain fraud or illegal actions beforehand.
● Please click here for detailed information regarding our service fees.