Small Japanese Audit Firms Mull Mergers to Retain Listed Clients

A move by Japan’s professional accounting body to increase the minimum number of CPAs a firm must employ before it can vet the books of publicly listed companies has smaller audit shops considering more mergers.

The Japanese Institute of Certified Public Accountants announced in January that it would raise the mandatory number of partners who are CPAs to ensure that firms are adequately staffed to catch accounting irregularities at large public companies, and to promote consolidation within the industry. The professional group has established a project team to work out details of the new requirement, including how much ...