Retaining confidence in CPA Audits - Chairman and President Statement issued
On December 22, 2015, the Chairman and President Statement was published by JICPA in light of the administrative orders issued by the Financial Services Agency (FSA) against Ernst & Young ShinNihon LLC and its partners regarding a corporate scandal of a certain listed company.
JICPA, as a self-disciplinary professional body, takes this matter seriously, as this may potentially damage public confidence in capital markets and audits conducted by CPAs.
JICPA has already launched its own investigation into the past audit engagements of the audit firm and CPAs involved in the audits of the concerned company.
Based on the findings from the investigation, JICPA will implement appropriate measures in accordance with its constitution.
In order to promote even greater trust in audits that form a foundation of the healthy functioning of the capital markets, the Chairman and President Statement has reaffirmed that JICPA is committed to continue performing an extensive examination of the overall system of audit and take appropriate measures for the improvements in the system, while at the same time, urged all of its members to ensure that audits are performed appropriately, and with due professional care.
The Chairman and President Statement (Summary) can be obtained at:
http://www.hp.jicpa.or.jp/english/news/files/0-99-0-2-20151222.pdf