Accounting and Auditing

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Accounting and Auditing

EOS provides the following accounting and auditing services to Japanese companies based on bases throughout the United States. In addition, we strive to respond flexibly and promptly to respond to the various needs of everyone in each service.

1. Attestation Services

  • Financial Statement Audits
  • Financial Statement Reviews
  • Captive Insurance Company Audits (Hawaii)
  • Compilations

2. Advisory Services

  • Mergers and acquisitions (M&A) advice/financial due diligence
  • Compliance with International Financial Reporting Standards (IFRS)
  • Internal Control and Response to the J-SOX Act

3. Accounting-related support services

  • Bookkeeping and year-end financial reporting support
  • Financial Statement Audit support
  • Support for Other Accounting-Related tasks

1. Attestation Services

Attestation services are classified into the following three categories according to the level of assurance by the report issued by the certified public accountant and the difference in procedures. Attestation services are provided by CPAs from the standpoint of an independent third party, but cooperation between both the client and the accountant is indispensable for a successful engagement. Our firm aims to provide efficient and effective services by working closely with our clients.

Financial Statement Audits

The audit process can be broadly divided into three stages: 1) Formulation of an audit plan, 2) implementation of a verifiable test, and 3) issuance of an audit report.

1) Formulation of audit plans

First, the auditor understands and confirms the outline of the company and business and internal controls, evaluates and understands where the risk of potential misstatements exist in the financial statements, and then formulates a plan for conducting efficient audits. This work is mainly carried out before the end of the fiscal year.

2) Performance of Empirical Testing

After the end of the fiscal year, based on the audit plan, documented evidence will be verified to determine whether the financial statements are appropriate or not, and corroborate evidence with external business partners, etc.

3) Issuance of audit reports 

An audit report will be issued when the entire review of the procedures carried out and other necessary procedures have been completed.

Usually, an audit is conducted for the purpose of ensuring the appropriateness of the financial statements prepared by the management of the company for the benefit of the financial statement users (shareholders, investors, creditors, etc.) from the standpoint of an independent third party. For this reason, it is generally required for listed companies, but even in the case of a U.S. corporation or subsidiary of a Japanese company that is not listed in the United States, if the parent company listed in Japan is highly important as a consolidation target, it may be required to be audited by the parent company or the auditor of the parent company. EOS provides audit services primarily to such customers. In addition, we also support communication with the parent company and the parent company's auditor in Japanese.

Financial Statement Reviews

We conduct review procedures prescribed by the Institute of Certified Public Accountants in the United States, which mainly consist of analysis of financial figures and questions to accountants and managers, and provide limited assurance as an independent third party regarding the appropriateness of financial statements. Compared to audits that examine risks and verify evidentiary evidence for the purpose of proactive assurance, reviews based on limited work without empirability testing are aimed at providing negative assurance that "as a result of the review procedure, no items requiring significant amendments to the financial statements have been discovered." As a result, the level of assurance is lower than that of an audit, but the time and cost required to submit a review report is reduced compared to a financial statement audit.

Captive Insurance Company Audit (Hawaii)

The audit process is similar to the traditional financial statement audits, but the auditor must register with the Hawaii Department of Insurance and obtain prior review and approval as an auditor. Captive insurance can be used not only to improve insurance programs but also to improve profitability, fund balance, and business risk management. In addition, to realize such diversity or potential, such operations are supported by the involvement of many professionals, including the Hawaii Department of Insurance, captive managers, captive consultants, and lawyers. EOS will also provide audit services in close cooperation with each expert as a member of the experts.

Compilations

Based on the numerical values submitted by the company, we will assist in the preparation of financial statements. After the end of the fiscal year, we will ask you to submit the necessary materials and proceed with the preparation of financial statements. Although financial statements are prepared in accordance with accounting principles, we do not examine the accounting records submitted by the company and do not provide an opinion on assurance as to the appropriateness of the financial statements. If the importance of a U.S. corporation or subsidiary to the parent company as a consolidated entity is not very high, it may be more cost-effective to respond with a review or compilation. In addition to year-end, we also offer half-year and quarterly services such as year-end audit + quarterly review, year-end review + half-year compilation, etc.

2. Advisory Services

We provide the following advisory services: Mergers and acquisitions (M&A) advice/financial due diligence We provide consulting services related to mergers and acquisitions, as well as due diligence services such as the adequacy of various accounting procedures, verification of the existence of assets, liabilities and net worth accounts, review of profit plans, and consideration of business value. Compliance with International Financial Reporting Standards (IFRS) IFRS has been applied as a standard for preparing financial statements in many countries, including Europe, since fiscal 2005, and has now been adopted in more than 100 countries. In recent years, Japanese companies in the United States have been gradually converting from U.S. GAAP to IFRS, and as a support for this, we provide transition support services according to the needs of each company. Internal Control and Response to the J-SOX Act In response to the J-SOX Act, our firm provides services such as advice on how to document internal controls, documentation work, testing of descriptions, business risk assessment support, evaluation of internal control functions, and construction.

3. Accounting-related support services

In addition to traditional advisory services, U.S. CPAs, including those with auditing experience, provide detailed accounting services by proposing a range of support to meet client needs.

Accounting Outsourcing Services

We will quickly support daily bookkeeping agency, settlement business agency for each term, and payment and payment agency agency. In addition, we will respond to temporary needs in a timely manner as necessary, such as initial setting up services for accounting systems at the time of company establishment and support for general accounting operations during the period after business closure until the completion of liquidation. Staff who hold QuickBooks certificates on behalf of clients provide smooth correspondence.

Financial Statement Audit Support

If you have asked another accounting firm to conduct an audit, but there is a shortage of manpower for consolidation work or preparation of financial statements, we will support you from the client's point of view.

Support for preparation of accounting regulations and accounting business manuals

Our experienced staff will assist you with the creation and updating of new accounting regulations and accounting operations manuals accompanying the establishment of a company, reorganization, or the introduction of a new accounting system.

Engaging EOS

  1. Please contact us using the inquiry form on the inquiry page of this site or by e-mail. If time is of the essence, please feel free to call us directly at the EOS location most convenient for your needs (we are able to respond in Japanese).
  2. The person in charge will contact you by e-mail or telephone, and we will visit you after adjusting the date and time of the interview. We will confirm the details such as the desired service contents and timing, and propose an appropriate service according to your needs. After confirming the service contents and costs etc. in the proposal materials, the contract will be concluded with a formal contract.