Meeting ever-increasing audit requirements can be challenging.
Outsourcing internal audit buys your team the time to focus on business-critical issues
and allows for optimal resource allocation.
Quality internal audit can identify risk at early stages. It is the key to effective fraud prevention and the foundation for continued business growth.
AUPs are highly flexible engagements in which the CPA will execute a procedure agreed in advance with the client and report back on the findings.
Business planning and capital strategy advice, and IPO consulting for biotechnology startups. We provide continued support and encourage dialogue every step of the way.
Statistically, the risk of fraud is higher at entities further removed from headquarters. Not all fraud starts with malicious intent. But even with the aid of modern technology, maintaining effective controls over a geographically remote location remains a challenge. Recruiting good internal auditors in Japan is often difficult, and nurturing local talent that can provide the much-needed link between headquarters and overseas subsidiaries requires time, effort and money.
Overreliance on external auditors can also make an organization vulnerable. External auditors determine the depth of audit based on the importance of the entity in the group, often giving smaller subsidiaries low priority. This is the cause of much frustration among shareholders and clients, who depend on external audit reports to validate their trust in the organization. Enhancing the internal control function is an effective solution to address a gap in expectations that is difficult for external audit firms to resolve themselves.
Once exposed, dealing with fraud is extremely difficult, especially given increased public scrutiny in recent years. Damaged trust, loss of face, plummeting shares, financial fines, independent
investigation committees, and perhaps the most severe consequence of all – deeply demoralized loyal employees who took pride in their work and identified themselves with the corporate
To eradicate fraudulent behavior, an organization must question its processes and remedy cultural traits that may breed such psychology. It is a long-term, strenuous process only possible with expert insight and a team of talented, dedicated internal auditors committed to the task.
Lifetime employment is much the norm in Japan, and internal audit staff are often introduced to the task as the result of an interdepartmental job rotation. Although they have the advantage of
understanding the workings of the company, not all employees are the right fit for the role, and an internal auditor may choose not to speak out against the organization for fear of jeopardizing
a lifelong career.
In addition to the dilemma of securing quality talent, corporate governance is a relatively new concept in Japan and the departments being audited are not always receptive, creating further challenges for internal audit staff.
ith the Japanese economy in slow decline, companies are increasingly turning to M&A as a strategy to gain market share and ensure business succession. However, mergers must be managed with care, especially with regards to corporate culture. Failure to integrate may not be immediately evident after the merger, but cultures cannot be changed overnight. Over time, a negative undercurrent will breed miscommunication, making it increasingly difficult for management to control the organization and in the worst-case scenario, result in fraud or scandal. An effective internal audit can help prevent such issues before they arise.
Companies must face increasing audit requirements with limited budget and personnel. We help your team to focus on business-critical issues. Outsourcing may prove more cost efficient compared to an in-house audit.
An estimate on the hours needed (and cost) upfront will enable better control over your budget. Our preliminary consultation session ensures the quote is based on an accurate understanding of your situation, approach to internal audit, as well as the required standard of the engagement.
Your internal audit team will receive support from fully qualified Japanese CPAs. Audit plans can be made with appropriate consideration to risk and fraudulent activity detected in a timely manner. We are dedicated professionals, and can assist your organization to take a proactive approach to internal audit.
Marunouchi Internal Audit Office will bring quality to your internal audit process by:
We will assess the number of days required for the engagement depending on your situation, and provide a tailored solution based on a daily charge system.
Daily charges are commensurate to the Big 4 accounting firms.
Large audit firms will charge a team rate for senior auditors who are often not onsite. Our services guarantee a fully qualified Japanese CPA with 10+ years of experience will be onsite for the entire engagement.
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