What's New (Feb, 2011)

February 21,2011

The Auditing Standards Committee released the following statement No.57, as part of its project to redraft its statements along with its new drafting principles (such as the obligation to clarify the procedures) established in response to the Clarity Project of the International Auditing and Assurance Standards Board (IAASB) of International Federation of Accountants.

Auditing Standards Committee Statements No.57 "Related Parties" (Interim report)

After exposing the draft statement on July 30th 2010, and extensive comments from the public, the committee considered some of the submitted comments and made some changes in wordings in order to make the draft more readily understandable.

The effective date of the standard will be determined in the future at the Executive Board Members’ meeting.

February 21,2011

JICPA partially revised, on January 23, 2011, “Quality Control Review Procedures.” Following are the main revisions. 

Given the clarification of the definition and treatment of the joint firms, following the partial revision of the registration procedures for the firms and the joint firms, as well as the establishment of the engagement guideline for the joint firms, items relating to the quality control review procedures for the joint firms have been duly revised.　 
The rules relating to the quality control review procedures in the bylaws have also been revised, as a result of the partial revision of the bylaws of the listed company audit firm registration system. 
In addition, the quality control review cycle at intervals of 5 years, which had previously been permitted for some of the audit firms, was amended to reviews at intervals of 3 years as defined in the procedures, owing to the development of review systems and other related rules. 
Revised procedures will be implemented from April, 2011.