Engagement
Statutory Year-End Audit
An independent examination of annual financial statements for companies preparing reports under Japanese GAAP or IFRS.
Who it is for
Mid-sized companies, subsidiaries of overseas groups, and family-owned firms in Shimane and neighbouring prefectures that need an independent opinion on their year-end accounts.
What you receive
A signed auditor’s report, a management letter with control findings, and a clear walk-through of adjustments with your finance team.
Included in the engagement
- Planning meeting and risk assessment tied to your industry and ledger structure
- Substantive testing of revenue, inventory, receivables, and significant estimates
- Review of closing entries, tax provisions, and related-party disclosures
- Draft findings discussion before the report is finalised
- Final auditor’s report and management letter in English (Japanese summary available on request)
Outside the scope
- Bookkeeping or preparation of the financial statements themselves
- Tax return filing or tax representation
- Internal audit outsourcing as a standing monthly service
Who delivers the work
Engagements are led by a Sumi Balance Advisory partner with field work by senior auditors familiar with Japanese year-end close practices.
Process
- Engagement letter and independence confirmation
- Planning and walkthrough of key cycles
- Fieldwork at your office or designated records room
- Clearing queries and proposed adjustments
- Report issuance and closing meeting
Location & delivery
On-site in Shimane Prefecture when records are paper-based; hybrid review of digital ledgers for clients elsewhere in Japan.
Preparation
Trial balance, general ledger export, bank reconciliations, inventory count sheets, and prior-year report should be ready before fieldwork begins.
Constraints
We do not accept engagements where we have prepared the accounts under review. Material scope changes after planning may adjust fee and timeline.
Fees
Fixed fee quoted after a scoping call, based on turnover, number of entities, inventory complexity, and whether prior-year working papers are available. Listed starting point: From ¥1,800,000 per engagement.
Next step
Request an engagement estimate through the contact form, noting your fiscal year-end and reporting framework.