- Auditor Oversight Structure
|Auditor Oversight Structure|
|Reviews of the ''Quality Control Review'' and Inspections|
| The CPAAOB reviews and examines reports of quality control reviews by the JICPA and, if deemed necessary, conducts on-site inspections of the JICPA, audit firms, etc.
If the results of oversight show that quality control reviews have not been conducted properly, that the quality control of audits of CPAs/audit firms has been notably insufficient, or that their audit engagements have not conformed to laws, regulations and standards, the Board will recommend that the Commissioner of the Financial Services Agency take administrative actions and/or other measures necessary to ensure the proper operation of the JICPA and audit firms.
| *Quality Control Review
The JICPA conducts reviews of quality control practices at audit firms and provides recommendations to audit firms as deemed necessary. Although the JICPA's quality control review was originally conducted as a self-regulatory mechanism of the audit profession, it was formally incorporated into the CPA Law in the May 2003 revision. The CPAAOB reviews and examines reports of quality control review and, if deemed necessary, conducts on-site inspections.