Code of Ethics

The JICPA developed its Code of Ethics in conformity with that of the International Federation of Accountants (IFAC). In addition to the requirements in the IFAC's Code of Ethics, the CPA Act of Japan prohibits CPAs to engage in continuous long-term audits of companies that fall under the definition of "large companies, etc." under the CPA Act. Specifically, CPA Act and the enforcement order stipulate that key audit partners of certain large companies must rotate every seven accounting years with a two-year cooling off period. In the case of a "lead engagement partner, etc." of certain large audit firms, such partner must rotate every five accounting years at an interval of five years. Furthermore, CPAs are strictly prohibited from working for the companies that they have served as independent auditors until the end of the following accounting year of their resignation.

JICPA Code of Ethics:https://jicpa.or.jp/specialized_field/ethics/#shosoku (Japanese only)

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