{"id":439,"date":"2024-06-23T22:49:31","date_gmt":"2024-06-23T13:49:31","guid":{"rendered":"https:\/\/www.n-cpa.com\/audit\/?page_id=439"},"modified":"2024-06-27T23:22:05","modified_gmt":"2024-06-27T14:22:05","slug":"audit-for-subsidiaries-in-japan","status":"publish","type":"page","link":"https:\/\/www.n-cpa.com\/audit\/en\/audit-service-2\/audit-for-subsidiaries-in-japan\/","title":{"rendered":"Audit for subsidiaries in Japan"},"content":{"rendered":"

We provide audit services for subsidiaries in Japan under foreign capital entity.
\nThere are two types of audit. One is where procedures are performed according to instructions from the Group auditors of parent company. The other is where Japanese auditors conduct the audit in their discretion.<\/p>\n

The former case audit is called “Referred works.”
\nReferred works would be usually performed by member firms of parent company’s auditor if the subsidiary accounted for a significant part. However, it is not so unusual to ask an individual CPA or a small-sized audit firms, where the size of the subsidiary was not so big. The auditors performing procedures for the subsidiary are entirely regarded as different component even though they belong to the same group firms. This means there would be no differences whether the component auditor was an individual CPA or the same group firm. And workloads would not be reduced if conducted by the group firm.<\/p>\n

Rather, in the case of audit for small-sized consolidated subsidiary, inexperienced staff might be assigned if you ask Big4 firms. Because well-experienced staff members are preferentially assigned for big clients in Japan. In such a case, you might accumulate complaints in auditor’s performance although high audit fee was always charged. Given these facts, you should consider asking audit to other individual CPAs with affluent experience and expertise.<\/p>\n

\nPlease click here<\/span> for frequent asked questions (FAQ)<\/a>\n<\/div>\n