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Japan Audit Law to Give Accounting Body More Enforcement Muscle

April 21, 2022, 11:00 PM

Japan is revising its accounting laws to improve oversight of listed companies.

In a submission to Parliament last month, the Financial Services Agency proposed to put teeth into existing audit rules by giving the Japan Institute of Certified Public Accountants the legal authority to expel firms that fail to adhere to its conflict-of-interest policies. The proposal is expected to be adopted in the current fiscal year, which began April 1.

Pressure for improvement in the sector has been building for decades, amid a slew of auditing cases—with one of the biggest involving Toshiba Corp.—and demands for stronger ...