Compliance with the Japanese Sarbanes-Oxley Act is compulsory for almost 4000 Japanese companies listed on the Tokyo Stock Exchange (TSE). On 15 February 2007, the Japanese Financial Services Agency released the new Japanese standards for evaluation and auditing of internal controls over financial accounting, commonly referred to as J-SOX.
Companies listed on the TSE are obliged to prepare and submit internal control reports on a consolidated basis starting from the fiscal year commencing on or after 1 April 2008. Management must examine and evaluate the internal control over financial reporting of its own company, prepare reports of its conclusions, and be subject to audit by its external auditors. [The objective of both the US and Japanese SOX is to achieve compliance with the law, i.e., to have documentation of the control environment attain such a level that a positive statement is obtained from the external auditors. For companies subject to SOX, testing of the SOX environment is part of the audit.
How PwC can help you
- We can plan, propose the scope, and implement the project in its entirely, increasing the probability of achieving compliance by the set deadline.
- We can do a “walkthrough” of the control environment and perform a test of the SOX (J-SOX) audit requirements to achieve full compliance by the set deadline.
- Along with mapping the processes and evaluating the control environment, we can perform process optimisation and provide advice on how to improve the company’s business processes and controls.
- We can identify problems and possible obstacles and threats and minimise the associated risks.
- We can transfer our know-how and experience to the relevant employees of your company.
Make use of our independent viewpoint and extensive experience gained from working on a host of similar projects and consider the following services:
- Project management
- Project design – scoping, documentation, evaluation, reporting
- Risk assessment
- Change management
- Expert advisory related to identified issues
- Trainings and workshops
- Control environment assessment
- Quality assurance and review
- Process improvement and optimisation
- Audit preparation