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
)