FEATURES OF AUDITING IN JAPAN

ABSTRACT

This article presents and describes the features of the organization of audit activities, the system of training auditors in Japan.

Keywords: audit, audit activity, Japan, training of auditors, organization, audit services.

Audit is an independent examination of the financial statements of the audited entity in order to express an opinion on the reliability of such statements in all material aspects.

The following interpretation of audit is presented in international auditing standards: it is a systematic process of obtaining and evaluating objective evidence regarding the reliability of data on economic actions and events, establishing the degree of compliance of these data with accepted criteria and presenting the results to interested users.

The need for the services of a specialized auditor is caused by the separation of interests of those who are directly involved in the management of the enterprise (administration, managers), who invest in its activities (owners, shareholders, investors), as well as the state as a consumer of information about the results of the activities of enterprises.

The organization of audit activities in Japan is of interest to domestic specialists interested in improving and modernizing audit in Russia.

The Japanese audit market is run by the Institute of Certified Public Accountants. This self-regulatory association is considered the only organization for a certified public accountant: qualified professionals who intend to practice with the title of certified public accountant must become members of this Institute. In addition, an audit opinion is submitted to the Institute based on the results of each audit. [1]

In Japan, the activities of auditors are monitored by the Ministry of Finance. For example, the Law on Auditing Requires the Minister of Finance to initiate an investigation into illegal actions of the auditor after receiving relevant information from any person.

In the course of the investigation, the minister must listen to the views of all interested parties or collect written evidence from them and, if necessary, conduct an examination, request all necessary documentation for confirmation and conduct an audit of the documents that the auditor worked with unexpected for the company. The expenses of all witnesses and experts are paid by the Ministry of Finance. Based on the results of this investigation, a protocol is filled out with justification of the reasons for the decision. Any interested person can request it for consideration for an appropriate fee. The results of the investigation are published in the professional press.

As a punishment, the Ministry of Finance can prohibit the auditor from performing his duties for up to one year by revoking his registration certificate for the right to hold the position of auditor. In this case, after the expiration of the ban, the auditor will again have to go through a laborious and lengthy registration process. [3]

It should also be noted about the system of training auditors in Japan, as it is a rather complicated process.

So, in order to obtain the title of auditor, an interested person needs to pass exams in three rounds. The first round is necessary to determine whether the level of general education of candidates meets the requirements of the subsequent round of examinations. All interested persons have access to it, regardless of their gender, age and education. There are those who are exempt from this tour: college and university graduates. The first round includes the following exams: Mathematics, Composition, and Japanese.

The aim of the second round is to obtain the title of junior auditor. It includes written exams in accounting, balance sheet, cost accounting, financial auditing techniques, business management, economics, and commercial law. This tour also includes exempted individuals who have been teaching at a university or college for at least three years. This tour is usually only within 7-9% of applicants.

Persons with at least three years of experience as a junior auditor are allowed to the third round of exams and only with a document confirming the completion of annual courses in this specialty. The purpose of this tour is to obtain the title of auditor.

Training usually takes place after work three times a week for three hours. In the learning process, students pass exams several times and also prepare independent work. This round includes exams in audit practice and procedures, financial analysis, taxation, accounting, and cost accounting. This tour is usually within the power of 42.5% of applicants. Tuition and the exams themselves are paid.

In cases where applicants use illegal methods of preparing for an answer, i.e. if cheat sheets or tips were used, the examination committee has the right to deprive them of the right to retake for up to three years.

Thus, summarizing all of the above, thanks to an in-depth study of the organization of audit activity in Japan, we will be able to determine the most optimal ways of developing the organization of audit activity in Russia.

References:

1. Accounting, taxation, audit in the Russian Federation [electronic resource] / access mode: http://www.audit-it.ru /, free.
2. Accounting in foreign countries [text]: textbook / L.А. Zharikova, N.V. Naumova. - Tambov: Publishing house of Tamb. state tech. University, 2008 .-- 160 p.
3. International audit [electronic resource]: tutorial / Nozhkina TV / access mode: http://window.edu.ru /, free.