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Welcome to the Sarbanes Oxley Compliance
Portal
Japanese Sarbanes
Oxley
J-SOX is Japan's Financial Instruments and Exchange Law, enacted
in response to corporate scandals.
The Internal Control Committee of the Business Accounting Council
of the Japanese Financial Services.
Listed
companies in Japan must:
• Document internal processes and controls
• Test / evaluate the
design
of internal processes and control procedures
• Test / evaluate the
operation
of internal processes and control procedures
• Certify about the design and effectiveness of internal controls
and certify as to the accuracy of the report
• External auditors must issue an attestation repors
Looks familiar?
The Financial Instruments and Exchange Law is effective (since
April 2008) for 3,800 companies listed in Japan,
along with their foreign subsidiaries.
Definition of Internal Control
Internal control is defined as a process performed by everyone in
an organization and incorporated in its operating activities in
order to provide reasonable assurance of
achieving four objectives:
-
Effectiveness and efficiency of business operations,
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Reliability of financial reporting,
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Compliance with applicable laws and regulations relevant to
business activities,
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Safeguarding of assets.
Internal control consists of
six basic components:
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Control
environment
-
Risk assessment and response
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Control activities
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Information and communication
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Monitoring
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Response to IT (Information Technology)
Effectiveness and efficiency
of business operations means promoting effective and efficient
operations in order to achieve the objectives of business
activities.
Reliability of financial reporting means ensuring the reliability
of financial statements and the information that could have a
material effect on financial statements.
Compliance with applicable laws and regulations relevant to
business activities means promoting compliance with laws,
ordinances and other codes relevant to business activities.
Safeguarding of assets means to ensure that assets are acquired,
used and disposed of in accordance with proper procedures and
approvals.
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