Assurance Engagement

Statutory Financial Statement Audit

An independent audit of the annual financial statements for Japanese companies that need an opinion for shareholders, lenders, or consolidated group reporting.

Quote-based — typically from ¥1,800,000 for a single mid-size entity

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Who this engagement serves

Controllers, CFOs, and owner-managers of manufacturing, wholesale, and service entities in Japan that must present audited statements under Japanese GAAP or IFRS.

What you receive

A signed auditor’s opinion, a management letter with prioritized findings, and a closing meeting with the finance lead covering adjustments, disclosure notes, and subsequent events.

How the audit unfolds

We begin with a scoping call covering legal entities, significant locations, and prior-year adjustments. Planning includes walkthroughs of revenue recognition, purchasing, and payroll. Fieldwork concentrates on revenue cut-off, inventory valuation, accounts receivable collectibility, and related-party balances that often matter to Japanese lenders.

Provider

Engagements are led by a certified public accountant of Japan affiliated with Tsubasa Assurance Desk, supported by experienced audit staff for testing and documentation. We do not rotate junior staff mid-fieldwork without notice to your finance contact.

Constraints

We accept engagements only when independence can be maintained and when management can provide access to books, warehouses, and key personnel. If a predecessor auditor’s files cannot be reviewed, the first-year fee may increase to cover opening balance procedures.

Engagement at a glance

Scope: Full-year financial statement audit including planning, risk assessment, substantive testing, and reporting. Group component work available by separate letter.
Timeline: Planning begins 8–12 weeks before year-end; final opinion target is typically 6–10 weeks after the balance sheet date, subject to timely evidence.
Delivery: On-site fieldwork at your offices and warehouses when material balances require observation; remote document review between visits; English or Japanese reporting by agreement.
Preparation: Trial balance, general ledger extracts, inventory count plans, bank confirmations, and related-party schedules should be ready before fieldwork week.
Pricing basis: Fixed engagement fee after scoping; travel billed at cost for sites outside Fukushima Prefecture.

See the engagement process

Included

Engagement letter and independence confirmation
Risk assessment and planned audit procedures
Inventory observation when inventory is material
Draft and final auditor’s report
Management letter with ranked recommendations
Closing meeting with the finance team

Not included

Bookkeeping or preparation of the financial statements
Tax return filing or tax controversy support
Continuous monitoring between audit seasons
Forensic investigation beyond fraud risk procedures in the audit

Ready to discuss fieldwork dates?

Share your closing calendar and entity structure. We will confirm whether this engagement fits before any fee proposal.

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