Engagement
Statutory Financial Statement Audit
An independent audit of annual financial statements under Japanese GAAP or IFRS, prepared for boards, lenders, and filing calendars in Japan.
Blue Coast Audit Cabinet leads statutory audits for companies that must present audited financial statements to shareholders, banks, or regulators in Japan. Our partners stay close to the ledger — not as bookkeepers, but as independent examiners who test assertions, observe inventory, and challenge estimates before an opinion is signed.
This flagship engagement is designed for finance teams that already prepare statements under Japanese GAAP or IFRS and need an auditor who understands Japanese closing customs, hanko workflows, and the practical timing of board approvals. We do not sell software or a monitoring product; we deliver a human-led audit with clear fieldwork weeks and a named engagement partner.
Who it serves
Companies that need an independent opinion
Mid-size manufacturers, trading companies, and professional-service groups with year-end filings in Japan, often with one or two overseas subsidiaries that must roll into consolidated statements.
What you receive
An audit opinion you can file with
A signed independent auditor’s report, management letter on control observations, and a closing meeting with your finance lead covering adjustments, subsequent events, and remaining open items before the board pack is final.
Scope
Included and outside the engagement
Included
- Risk assessment and audit planning tailored to your industry and closing calendar
- Substantive testing of material account balances and disclosures
- Inventory observation where stock is material
- Related-party and subsequent-events procedures
- Draft and final auditor’s report under the agreed framework
- Written management letter on findings
Outside this engagement
- Bookkeeping or preparation of the financial statements themselves
- Tax return preparation or tax controversy representation
- Internal audit outsourcing or continuous monitoring
- Due diligence for a sale or acquisition (offered separately)
How we work
From engagement letter to signed opinion
The statutory audit follows a fixed calendar tied to your year-end and board meeting dates, with fieldwork in your offices or at our Yamagata cabinet as agreed.
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1
Acceptance and planning
We confirm independence, agree the reporting framework, set materiality, and issue the engagement letter with fee and timetable.
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2
Interim procedures
Walkthroughs of revenue, purchases, and payroll; interim substantive work where balances allow earlier testing.
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3
Year-end fieldwork
Cut-off testing, confirmations, inventory counts, and evaluation of estimates such as allowances and valuations.
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4
Reporting and close
Proposed adjustments, draft report review with management, and delivery of the signed opinion for the board and filings.
Duration
Typically eight to fourteen weeks from planning kickoff to signed report, depending on subsidiary count and inventory locations.
Location
Fieldwork on site at client premises in Yamagata, neighboring prefectures, and Tokyo as needed; file review at our cabinet at 498 Fabian Prairie.
Preparation
Trial balance, draft statements, bank confirmations authorizations, inventory count schedules, and access to general ledger detail for material accounts.
Fees
Quote-based on entity size, locations, and framework. See Fees for starting ranges.
Ready to open an engagement?
Share your year-end date, reporting framework, and any subsidiary structures. We reply within two business days.
Request an engagement letter