Accountancy in Japan

>> Audit Requirements in Japan

Requirements and thresholds

The following require auditing under the Financial Instruments and Exchange Act

  • Companies that issue shares listed on a financial instruments exchange  or are in the process of listing;
  • Companies that filed a registration statement; and
  • Companies with a specified number of shareholders

Auditing under the corporate law

  • Large companies: Capital stock of JPY

500 million or more, or liabilities of JPY 20 billion or more, as of the latest fiscal year-end;

  • Companies which adopt a “Company with Committees” corporate governance system; and
  • Other companies which appoint an accounting auditors (Kaikeikansanin) on a voluntary basis

Audit requirements for foreign companies

Foreign companies which offer or have offered their shares, investment trusts and / or bonds publicly in Japan are not required to have their financial statements audited by a Japanese CPA or an audit corporation if the financial statements of the foreign companies are audited by a professional accountant who is the equivalent of a Japanese CPA or an audit corporation.

Latest version updated 13th October 2017

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