Engagement
Statutory Financial Statement Audit
An independent audit of annual financial statements prepared under Japanese GAAP or IFRS, culminating in an opinion letter for shareholders, lenders, and regulators.
Kairo’s flagship engagement is the statutory financial statement audit — the full cycle from engagement letter through opinion for companies whose shareholders, lenders, or articles require an independent auditor.
We work primarily with manufacturers, trading houses, and professional firms headquartered in Fukui Prefecture and western Japan. Fieldwork is conducted on-site at your offices and warehouses where inventory or production cut-off matters; planning and review may continue from our desk at 426 Kellie Extension.
What you receive
You receive a clear audit opinion on the financial statements you present, plus a management letter that distinguishes matters requiring board attention from housekeeping observations. We do not rewrite your accounts; we examine them. Adjustments, if any, are discussed with the finance lead before they reach the board pack.
Timeline
For a March year-end, planning usually begins in January, interim testing in February where controls allow, and final fieldwork in April. December year-ends follow a parallel calendar shifted earlier. Rush engagements after books are already closed are accepted only when independence and staff capacity allow.
Preparation we ask of you
Provide the prior-year file (if we are succeeding another auditor), draft trial balance, fixed-asset register, debt schedules, and access to the general ledger export. Inventory counts require advance notice so we can attend selected locations. Related-party listings should be current before fieldwork starts.
Pricing basis
Fees reflect entity complexity, number of locations, consolidation layers, and the quality of the books at kickoff. We quote a fixed engagement fee after the scoping call — not an open hourly meter for the statutory opinion itself — and flag any out-of-scope work (for example, a late acquisition) before it begins.
Who it is for
- Closely held companies in Fukui and neighboring prefectures that need a statutory audit opinion
- Groups preparing consolidated statements for parent reporting or bank covenants
- Boards seeking an independent view before signing the annual accounts
Included
- Planning meeting, risk assessment, and materiality discussion with management
- Substantive testing of significant balances, cut-off, and subsequent events
- Review of disclosures and draft notes prior to board circulation
- Written opinion and management letter with ranked observations
Outside this engagement
- Bookkeeping, tax filing, or preparation of the financial statements themselves
- Internal audit secondments that would impair independence
- Formal valuation opinions outside audit procedures
How the work proceeds
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1
Scoping conversation
We confirm reporting framework, year-end date, group structure, and prior-year findings before issuing an engagement letter.
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2
Planning and risk map
Material accounts, revenue streams, inventory locations, and related-party pathways are documented with an agreed fieldwork calendar.
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3
Fieldwork and evidence
Sampling, bank and receivable confirmations, inventory observation where needed, and walkthroughs of key control points.
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4
Reporting and clearance
Draft opinion, clearance of adjustments, and a management letter timed for your board pack deadline.
Ready to discuss scope?
Share your year-end date, reporting framework, and prior-year findings. We will reply with a draft engagement outline.
Open an inquiry