Engagement

Statutory financial statement audit

An independent examination of your financial statements culminating in an auditor’s report — planned around materiality, tested through samples and site observation, and delivered with a management letter that names open items.

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Auditor examining financial statement binders on a desk

Who this engagement is for

Privately held companies, cooperatives, and group subsidiaries in Japan that need an independent auditor’s report on financial statements prepared under Japanese GAAP or IFRS. Boards often engage us ahead of bank covenant reviews, shareholder questions on reserves, or when a predecessor auditor declines to continue.

Result you receive

A signed auditor’s report on the statements named in the engagement letter, plus a management letter that ties findings to specific accounts, cut-off dates, and evidence gaps. We do not rewrite your books; we examine them.

Provider

Engagements are led by an engagement partner of Pine Harbor Financial Audit, with an audit manager running fieldwork weeks and specialists joining for inventory observation or control walkthroughs when scoped.

Constraints

We accept engagements only when independence can be maintained and when management can provide timely access to records. Inventory observation dates that have already passed without a count may limit what we can conclude on stock.

Scope

What this engagement includes

  • Planning meeting and materiality assessment for named entities
  • Risk assessment of revenue, inventory, receivables, and related parties
  • Substantive sample testing of sales, purchases, and journal entries
  • Inventory observation or cash counts when balances are material
  • Draft and final auditor’s report plus management letter comments

Boundaries

What sits outside the fee

  • Day-to-day bookkeeping or catch-up ledger postings
  • Tax return preparation and tax advisory opinions
  • Full restatement of prior periods without a separate fee
  • Valuation opinions for litigation or purchase price allocation

How we work

Engagement stages

  1. 1

    Acceptance & planning

    We confirm independence, obtain predecessor clearance where needed, set materiality, and issue a prepared-by-client request list.

  2. 2

    Interim & year-end fieldwork

    Samples are selected, confirmations sent, and site visits scheduled for inventory or cash. Open items are listed mid-engagement.

  3. 3

    Reporting

    Draft findings are discussed with management; the final report is issued after clearance of material open items and fee settlement.