Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services

(Excerpt)

(Thursday, December 24, 2015, 10:41 am to 10:56 am)

[Questions and answers:]

Q.

I have a question that relates to the Financial Services Agency (FSA). The day before yesterday the FSA imposed administrative penalties on Ernst & Young ShinNihon LLC in relation to the accounting irregularities at Toshiba. Minister, please tell me your views on this issue from the perspective of the role of audit firms in the capital markets.

A.

As you know, regarding the auditing system, Japan is a free and open economy, so I think it’s an extremely important infrastructure for ensuring trust in the free financial and capital markets. And I think it’s extremely regrettable that there were problems with the audits performed by the audit firm and with its business management structure. I think Ernst & Young ShinNihon needs to revisit the circumstances and causes that led to this failure, to reflect on them, and to work hard to make significant improvements to its business and to restore its trust. And I think that the FSA must monitor the actions being taken by Ernst & Young ShinNihon.