Abstract
This chapter discusses CPA system reform in Japan. The necessity for reform of the accounting system, aimed at increased transparency for investors, has been recognised in Japan for some time. It coincided with the Japanese Big Bang, a major reform intended to create a free, fair, and global financial system. In the late 1990s, the reform proposals became broader in scope following growing criticisms of the profession concerning the CPAs' failure to expose the window-dressing which brought down some securities companies and banks. These proposals largely resorted to self-regulation by the Japan Institute of Certified Public Accountants (JICPA). The JICPA accordingly introduced various measures to increase the effectiveness of the audits by the CPAs. However, after the Enron/WorldCom affairs, influenced by the US, the tide seems to have changed. Further reinforcement of the independence of the CPAs from the client companies, and above all broader grounds for interference by the government, were proposed and eventually became law. The amended CPA Law has been significantly influenced by the Sarbanes-Oxley Act, although the profession has managed to reach some compromises.
| Original language | English |
|---|---|
| Title of host publication | Corporate Governance in Context |
| Subtitle of host publication | Corporations, States, and Markets in Europe, Japan, and the US |
| Publisher | Oxford University Press |
| ISBN (Electronic) | 9780191700576 |
| ISBN (Print) | 9780199290703 |
| DOIs | |
| Publication status | Published - 2012 Mar 22 |
| Externally published | Yes |
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Keywords
- Accountants
- Accounting
- Auditing
- CPA law
- Sarbanes-oxley act
ASJC Scopus subject areas
- Social Sciences(all)
Cite this
The Changing World of the CPAs in Japan. / Oda, Hiroshi.
Corporate Governance in Context: Corporations, States, and Markets in Europe, Japan, and the US. Oxford University Press, 2012.Research output: Chapter in Book/Report/Conference proceeding › Chapter
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TY - CHAP
T1 - The Changing World of the CPAs in Japan
AU - Oda, Hiroshi
PY - 2012/3/22
Y1 - 2012/3/22
N2 - This chapter discusses CPA system reform in Japan. The necessity for reform of the accounting system, aimed at increased transparency for investors, has been recognised in Japan for some time. It coincided with the Japanese Big Bang, a major reform intended to create a free, fair, and global financial system. In the late 1990s, the reform proposals became broader in scope following growing criticisms of the profession concerning the CPAs' failure to expose the window-dressing which brought down some securities companies and banks. These proposals largely resorted to self-regulation by the Japan Institute of Certified Public Accountants (JICPA). The JICPA accordingly introduced various measures to increase the effectiveness of the audits by the CPAs. However, after the Enron/WorldCom affairs, influenced by the US, the tide seems to have changed. Further reinforcement of the independence of the CPAs from the client companies, and above all broader grounds for interference by the government, were proposed and eventually became law. The amended CPA Law has been significantly influenced by the Sarbanes-Oxley Act, although the profession has managed to reach some compromises.
AB - This chapter discusses CPA system reform in Japan. The necessity for reform of the accounting system, aimed at increased transparency for investors, has been recognised in Japan for some time. It coincided with the Japanese Big Bang, a major reform intended to create a free, fair, and global financial system. In the late 1990s, the reform proposals became broader in scope following growing criticisms of the profession concerning the CPAs' failure to expose the window-dressing which brought down some securities companies and banks. These proposals largely resorted to self-regulation by the Japan Institute of Certified Public Accountants (JICPA). The JICPA accordingly introduced various measures to increase the effectiveness of the audits by the CPAs. However, after the Enron/WorldCom affairs, influenced by the US, the tide seems to have changed. Further reinforcement of the independence of the CPAs from the client companies, and above all broader grounds for interference by the government, were proposed and eventually became law. The amended CPA Law has been significantly influenced by the Sarbanes-Oxley Act, although the profession has managed to reach some compromises.
KW - Accountants
KW - Accounting
KW - Auditing
KW - CPA law
KW - Sarbanes-oxley act
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U2 - 10.1093/acprof:oso/9780199290703.003.0031
DO - 10.1093/acprof:oso/9780199290703.003.0031
M3 - Chapter
AN - SCOPUS:84929270011
SN - 9780199290703
BT - Corporate Governance in Context
PB - Oxford University Press
ER -