Here in Japan, while on the one hand, corporate performance and the employment situation are improving and the economy is moving along at a brisk pace, on the other hand, there are tremendous changes afoot. These days, for example, hardly a day goes by without some mention of artificial intelligence. Looking out into the world, in light of issues such as Brexit and the workings of the new US administration, there is a growing sense of uncertainty about the future. In response to the increasing complexity of corporate management, expectations of effective governance are growing ever stronger.
The PwC global network has declared its relevance to be to “build trust in society and solve important problems.” Based on this relevance, our firm believes that it is our social mission to contribute to the sound development of Japan’s economic/social infrastructure, and financial and capital markets, by conducting high-quality audits. To fulfill this mission, our firm is proactively participating in the changes in the world and continuing our efforts to be a presence that is trusted by its diverse stakeholders.
Active reform has begun in the Japanese audit industry to raise the reliability of audits in the economic/social infrastructure. These reforms include the introduction of the “The Audit Firm Governance Code” and the debate on increasing the transparency of audit reports. Our firm, as one of the major audit firms, is voluntarily holding proactive dialogue with Japan’s regulatory authorities and relevant organizations. We have also established the Public Interest Body, an organization that seeks the opinions of outside experts about our approach to improve the quality of our audits. We are actively engaging in a variety of initiatives to improve our audit quality, including continuation of proactive investment in people and digital technology. We also disclose these initiatives to our stakeholders on an ongoing basis through our “Transparency Report.”
To fulfill our social mission, we have established five domains of strategic priority, namely, quality of services, human resources, expansion/growth of audit revenue, brand/value of existence, and profitability/transformation. Our partners and employees share a common sense of values and are transforming their own conduct accordingly. Specifically, we have established our values and behaviours of “Act with integrity, Make a difference, Care, Work together, and Reimagine the possible”. Together with the more than 236,000 individuals in the PwC global network spread across 158 countries, we are pursuing our own transformation.
As professionals with expertise and ethics, we are also required not only to be in compliance with the laws, regulations and audit standards, but also to exercise professional skepticism on the basis of in-depth understanding of the business when conducting an audit. It is also important for each professional of our firm to refine knowledge and insight from global perspectives. On the basis of such ability, we are striving to be a “Reliable Business Partner” who has an ability to meet clients’ needs in a timely and an appropriate manner, and to achieve “Contribution to Creation of Corporate Value”. We contribute to the sound development of the economic/social infrastructure and financial capital markets in Japan by providing high quality audit services. At the same time, our firm also focuses on transformation to enhance our quality of services with innovative approach, differing from current approach.
Although the environment surrounding the audit industry and its stakeholders are at the phase of massive changes, our social mission remains the same. Rather, being in the era of reform, we have more clear sense of mission. As our name "Aarata" (which means "new" in Japanese) suggests, our firm continues to take on “new” challenges and makes constantly endeavors to be a truly valuable and trusted partner for all of our stakeholders.
Koichiro Kimura, CEO
Hitoshi Kiuchi, COO