FSA Japan consults on draft framework for Inspection/Supervision of Foreign Audit Firms

15 June 2009

The CPAAOB will require foreign audit firms to report or submit the additional information once every three years. Requirements may be reduced in cases where the foreign competent authorities are deemed equivalent.

The Financial Services Agency and the Certified Public Accountants and Auditing Oversight Board have put together the attached “Draft Framework for Inspection/Supervision of Foreign Audit Firms, etc.” and have posted it for public consultation on FSA and CPAAOB websites, in order to establish policies and specific procedures.

 

The CPAAOB will require foreign audit firms to report or submit the additional information once every three years.

 

In principle, the FSA/CPAAOB will rely on the foreign competent authorities without requiring the information for several issues in those cases where a home jurisdiction’s audit system and public oversight system are equivalent to those of Japan, sufficient co-operation can be obtained, and reciprocity is ensured.

 

Deadline for comments is 13 July 2009.

 

Press release

Consultation document

 

© FSA Japan