International Finance and Accounting Handbook

(avery) #1
15 • 21

Japan


Corporations with more than


Under the Commercial Law


The Commercial Law Code


No Commercial Law Code;


500 million yen in capital

Code, the auditor and audit-

does not specify the purposes

the Auditing Standards re-

stock or more than 20 billion

ing officer are appointed at

of an audit; the Securities

quire: (1) experience, ability,

in liability stocks; public

the stockholders’ general

and Exchange Act specifies

independence; (2) a fair, im-

stock and debentures exceed-

meeting. Under the Securities

that it is to protect

indirectly

partial attitude; (3) due care;

ing 500 million yen; stocks

and Exchange Act, the

public interests and investors,

(4) refusal to use or reveal

registered for the stock ex-

auditor (CPA or corporate) is

to confirm that the financial

confidential information;

change or over the counter;

appointed by the board of

statements fairly and appro-

(5) sufficient evidence for a

plans to list on the exchange;

directors.

priately show the financial

reasonable basis for an opin-

and

labor

unions and educa-

position and results, and

ion; (6) planning, execution;

tional institutions

receiving a

that they are prepared in

and (7) audit procedure,

subsidy from governmental

conformity with accounting

timely, and extent of tests

bodies; corporations applying

principles.

based on internal controls,

for financing from the Small

materiality and audit risk.

Business InvestmentDevelopment Corporation

Hong Kong

All companies incorporated

Appointed by the sharehold-

To show a true and fair view

Statements of Auditing

and registered under the

ers at the annual meeting.

at the balance sheet date and

Standards of the HKSA; regu-

Companies Ordinance except

of profit and loss for the fi-

lations of the Companies

certain private companies.

nancial year and compliance

Ordinance.

with the CompaniesOrdinance, certain privatecompanies must show a trueand correct view.

Korea (South)

All companies above certain

Selected by management or

To give an opinion on the

Pronouncements on GAAS

minimum sizes.

audit committee is required

fairness of the client’s finan-

and GAAP issued by the

to be set up for large listed

cial position, results of opera-

Korean Institute of CPAs and,

companies.

tions, and cash flow, and to

in certain cases, by the

satisfy statutory requirements.

Securities and ExchangeCommission.

Exhibit 15.2.

(Continued

)
Free download pdf