001 Revision of auditing standards (exposure draft)
An exposure draft of revised auditing standards of Japan was announced by Business Accounting Council of Japanese Financial Services Agency on 5th March, 2010, and it will only be public until 19th March, 2010. The main purpose of this revision is to coordinate Japanese auditing standards with international ones and to improve clarity of audit reports. The revised standards are expected to be effective from the next audits of companies for the year ended 31 March, 2012.
There are three categories in the standards; introduction, summary, audit opinion category, and there has been a change in the “summary” category. This hasbeen clearly divided into another two categories, “manager’s responsibility” and “auditor’s responsibility.” Other changes can be seen in contents of notes.
Changes mentioned above would not affect workload of audited companies nor of auditors, while contents of “retrospective application of accounting standards” announced along with the above changes will do. Therefore, we would like to keep a close eye on this matter.
