- The Financial Services Agency (FSA) and the Certified Public Accountants and Auditing Oversight Board (CPAAOB) exchanged the Letters on cooperation in the area of audit oversight (PDF:2,502KB)with the Federal Audit Oversight Authority (FAOA) on June 10, 2021.
- The Authorities exchanged the letters to further strengthen cooperation between the authorities by expressing their intentions to mutually rely on the oversight of foreign audit firms in their home countries.
Based on “A Framework for Inspection / Supervision of Foreign Audit Firms, etc.” published on September 14, 2009, the FSA and the CPAAOB will, in principle, rely on the actions by the competent authorities of the firm’s home jurisdictions, instead of seeking to obtain information from or conducting inspections on firms themselves, provided that (a) audit and public oversight systems in the firm’s home jurisdictions are equivalent to those of Japan, (b) necessary information can be provided from the foreign competent authorities through appropriate arrangements of information exchange, and (c) reciprocity is ensured. See also Mutual Reliance with Foreign Jurisdictions in the Area of Audit Oversight.
The FSA/CPAAOB and the FAOA signed IFIAR MMOU (Multilateral Memorandum of Understanding concerning Co-operation in the Exchange of Information for Audit Oversight) in April 2017.
In August 2019, the FSA/CPAAOB published a decision that the audit and public oversight systems for auditors and audit firms of Switzerland is equivalent to the corresponding systems in Japan. See also Equivalency Assessment on Audit and Public Oversight Systems of Foreign Jurisdictions.
This news item was originally published by the Financial Services Agency (FSA JP). For more information, see the Source Link.