Statutory Financial Statement Audit

Who this engagement is for

Finance directors and owners who must present audited Japanese GAAP financial statements to shareholders, banks, or counterparties. The engagement fits single entities with one or two main operating sites and a bookkeeping team able to provide schedules during fieldwork.

Result you receive

A signed independent auditor’s report on the annual financial statements, a schedule of proposed adjustments, and a management letter describing control observations noted during the audit. We do not prepare the ledgers or draft the statements ourselves.

Scope included

• Risk assessment and materiality planning
• Observation of physical inventory counts at agreed locations
• Substantive testing of revenue, purchases, receivables, payables, and cash
• Review of significant estimates and related-party disclosures
• Partner review and clearance meeting before dating the opinion

Scope excluded

Bookkeeping, tax return preparation, valuation opinions outside the financial statements, and continuous internal audit staffing. Those services would impair independence if we later signed the audit opinion.

Process

1. Scoping call and engagement letter with fixed fee
2. Planning memorandum and document request list
3. Interim procedures where useful, then year-end fieldwork
4. Draft findings pack and management clearance
5. Signed report delivery and brief debrief

Preparation

Provide a locked trial balance, inventory count instructions, bank confirmation authorisations, and major contract files before the first fieldwork week. Incomplete schedules extend the timeline.

Constraints

Opinion dates depend on timely responses from management and third parties (banks, legal counsel). Multi-location inventory observation may require additional travel days billed at cost outside Wakayama Prefecture.

Next step

Request an engagement letter with your fiscal year-end, number of sites, and any lender package deadline.