overnance and Internal Control based on J – SOX”.
The Japan Desk Team explained that internal control is a procedure or policy put in place by management:
- To Safeguard Assets
- Promote Accountability
- Increase Efficiency
- Stop Fraudulent Behavior
By implementing Internal Controls, companies can achieve effectiveness and efficiency in operations which can help them to prepare reliable financial reports while adhering to the applicable laws. Based on the standard requirements all listed companies in Japan are required to perform risk assessments and prepare and submit Internal control reports.
Further, J-SOX compliance law introduces rules for the internal control over financial reporting in order
- To protect investors by improving the accuracy & reliability of corporate disclosures
- To improve efficiency & effectiveness of operations of the company
Japan Sarbanes-Oxley has two primary objectives; one is to charge management of listed companies with annually assessing the design and operating effectiveness of internal control. The other requires external auditors to issue a report of the effectiveness of internal control over financial reporting. Subsidiary of all the companies that have been listed in Japanese Stock Exchange are required to assess the effectiveness of Internal Control of Financial Reporting and to prepare the internal Control Report.
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Tag: Corporate governance, Internal controls, J-SOX, Uae