CONVICTION FOR TRUE AND FAIR DISCLOSURE. Yusei Audit & Co.

With an understanding of our clients' needs,
we provide efficient, high quality audit services

We provide a wide range of financial audit services including the audit and attestation of financial statements in compliance with Financial Instruments and Exchange Act and Companies Act. With an understanding of the needs of our clients, we are committed to delivering rigorous, high quality audit services in an efficient and effective manner that also fulfills our social responsibilities. Moreover, to provide audit services with greater added value, we have introduced a risk-oriented audit methodology which is more advanced than methodologies for conventional financial statement audits.

Audits under the Financial Instruments and Exchange Act

Corporations listed on Japans stock exchanges (Tokyo Stock Exchange, Osaka Security Exchange and the JASDAQ) are required by law to have their financial statements audited by an audit firm or certified public accountants. Other companies that are not listed but offer and sell their stock to a large number of unspecified parties also have the same audit requirements.

Audits under the Corporate Law

Under the Companies' Act, enterprises in Japan with capital of JPY 500 million or more or liabilities totaling JPY 20 billion or more are defined as large companies and, as such, are required to appoint a financial auditor ( certified public accountant or auditing firm), to undertake financial audits.

Other statutory audits
(Auditing of educational institutions, investment and consultation companies, labor unions,
political party assistance, and credit associations and credit unions)

Certain educational institutions under the National University Corporation Law and Private Educational Institution Promotion Subsidy Law, certain business investment companies under the Small Business Investment Co. Limited Law, and certain labor unions under the Labor Union Law are required to have their financial statements audited. At Yusei we also provide statutory audit services for these organizations.

• Audits of pre-IPO companies financial statements 
• Audit for subsidiaries by the request of parent companies
• Audit of financial statements (or financial due diligence) of targeted companies in M&A deal 
• Audit of cooperative unions
• Internal audit of companies, etc.
• Special audit (special examination upon arbitral request, etc.)

When we undertake an audit, we are committed to providing a rigorous service that fulfills our social requirements as an auditing firm by ensuring appropriate disclosure and at the same time provide an efficient, high quality service that reflects an understanding of our clients' needs. In our audit services we promote standardization through the use of our own standardized audit tools (Audit Guide).

To maintain the quality of our audit services at a reasonable level, we have established a Quality Control Committee which updates our audit tools and manuals whenever legislation, accounting standards, or guidance undergo revision or amendment. This ensures the uniformity of the services we provide and the efficiency and standardization of our work procedures. Our audit tools, templates, and manuals are systematized as components of our Audit Guide and are continually fine tuned as the backbone of our quality control system.

The Quality Control Committee not only maintains the quality control system but also conducts internal audits regularly to ensure that audit procedures are conducted according to our quality control system. The actual operation of the quality control system is also monitored on an ongoing basis. To ensure the effectiveness of the ongoing monitoring of the system, our own audit process management system monitors and manages the progress of all audit work in the database.

The need for financial auditing increased with the establishment of the Financial Instruments and Exchange Act. To maintain society’s trust in financial auditing, it is vital for audit firms to establish appropriate quality control systems that will ensure quality in audit services.

To address this issue, our firm has adopted a review system where review partners independent of the audited clients conduct a review of all audit processes in principle (including internal control audits and quarterly reviews). At this time various processes from the renewal of audit contracts and the drafting of audit plans to the issuance of the audit report are examined. On certain important issues, the Review Committee also undertakes a review in efforts to ensure audit quality. During the review process, particularly prior to the issuance of an audit report, the review partners and audit members engage in exhaustive discussion to determine whether the audit procedures and judgments and the formation of opinions were reasonably and appropriately undertaken. Accordingly only approved results are presented as audit opinions.

For those issues which audit members have difficulty in resolving, there is also a system for consulting with the review partners and Review Committee as needed during the audit. In this way, the accumulated experience and knowledge within the firm can be effectively utilized.