JICPA press release relating to recent corporate scandals
The recently reported corporate scandals of certain listed companies in Japan are matters of much concern from the perspective of securing public trust in the Japanese capital markets.
Our members, both certified public accountants (CPAs) and audit firms, have been carrying out their work faithfully and in an independent manner, all in accordance with the missions and responsibilities delegated to our profession.
With respect to the recent corporate scandals, the Japanese Institute of Certified Public Accountants (JICPA), as a self-disciplinary professional body, has started its investigation into the past audit engagements of the CPAs and audit firms. In the event our investigation concludes that the practice of our members involved in the audits infringed on our standards and rules, we will execute appropriate measures against responsible members, in accordance with the provisions of our constitution.
Audits conducted by CPAs are performed on the premise that appropriate corporate governance is in effect. In the past, JICPA has made proposals to strengthen corporate governance in Japanese companies. Likewise, with the occurrence of the recent scandals, if it becomes necessary to further improve corporate governance in Japan, we are determined to take the required steps, and request appropriate parties to initiate further changes in this area.