June 26, 2017
（This provisional translation was published on August １, 2017）
Financial Services Agency
Improved Transparency in the Auditor’s Report
The new and revised auditor reporting standards that require those matters that, in the auditor’s professional judgment, were of most significance in the audit be presented in the auditor’s report — in addition to an opinion as to whether or not the financial statements are fairly presented — was introduced in the International Standards on Auditing by the International Auditing and Assurance Standards Board (“IAASB”) for the purpose of improving the informational value of the auditor’s report (hereinafter, referred to as the “improved transparency in the auditor reporting”). Major countries in Europe and Asia have adopted the auditing standards and, in the United States, the Public Company Accounting Oversight Board (“PCAOB”) has announced to adopt a new audit standard that includes the communication of critical audit matters.
In Japan, Advisory Council on the Systems of Accounting and Auditing recommended that the “improved transparency in the auditor’s report” be considered from the perspective of providing more valuable information on the audit to shareholders and other stakeholders. In response to the recommendation, Keidanren (the Japan Business Federation), the Japan Audit and Supervisory Board Members Association, the Securities Analyst Association of Japan, the Japanese Institute of Certified Public Accountants, and the Financial Services Agency have gathered five times to exchange opinions on this issue since September 2016.
We have summarized the discussion as follows.
（Annex）Improved Transparency in the Auditor's Report（PDF：71KB）
Corporate Accounting and Disclosure Division, Planning and Coordination Bureau, Financial Services Agency
- Laws & RegulationsPage list
- Name of Laws and Regulations(PDF)
- Financial Instruments and Exchange Act
- Recent Changes
- Public Comment
- No Action Letter System
- Procedures concerning Foreign Account Management Institutions
- PrinciplesPage list
- Strategic Directions and Priorities
- Progress and Assessment of the Strategic Directions and Priorities
- Policy Approaches to Strengthen Cyber Security in the Financial Sector
- Financial Monitoring Policy
- AnnouncementsPage list
- Press Conferences
- Press Releases
- Official Statements
- Great East Japan Earthquake-Related Information
- The Earthquake Centered in the Kumamoto Region of Kumamoto Prefecture 2016-Related Information
- List of Institutions
- For those engaging in High Speed Trading
- To Operators of Specially Permitted Businesses for Qualified Institutional Investors, etc.