Engagement
Statutory Financial Audit
An independent examination of annual financial statements for companies that need a formal auditor’s opinion for lenders, shareholders, or statutory filing.
Fixed engagement fee from ¥1,800,000
Request an engagement letter
Kaede’s flagship engagement is the statutory financial audit: a structured examination of your annual accounts so directors, banks, and shareholders receive an independent opinion on whether the statements present fairly, in all material respects.
Who this suits
We work with companies that already keep double-entry books and need an audit for lending covenants, shareholder agreements, or Japanese company-law expectations — not startups looking for a product demo, and not sole traders who only need a tax filing.
How the engagement runs
- Scoping call — we confirm entity structure, year-end, inventory sites, and prior auditor status.
- Engagement letter — fee, timeline, and management responsibilities are set in writing.
- Planning — we identify significant accounts, fraud risks, and sample sizes.
- Fieldwork — tests of details, analytical procedures, and physical inventory observation where stocks are material.
- Reporting — draft findings, management responses, and the signed auditor’s report.
What you receive
You leave with a dated auditor’s report, a management letter listing control observations ranked by severity, and a clear list of open items if any remain. We do not replace your bookkeeper; we examine the records your finance team prepares.
Engagement outline
- For
- Mid-sized trading, manufacturing, logistics, and family holding companies in Yamaguchi Prefecture and western Honshu that require an annual audit opinion.
- Result
- An independent auditor’s report on the financial statements, a schedule of findings, and a closing meeting with management on control and disclosure matters.
- Included
- Planning and risk assessment, tests of account balances and transactions, bank and receivable confirmations, inventory observation where material, subsequent-events review, draft and final auditor’s report, and management letter on control observations.
- Excluded
- Bookkeeping, tax return preparation, valuation of complex instruments, and management representations that belong to the client’s directors.
- Provider
- Kaede Compliance Office engagement partners and field staff, under the signing partner’s responsibility.
- Timeline
- Typically six to ten weeks from engagement letter to report date for a single-entity company with one inventory location; longer for first-year or multi-subsidiary groups.
- Delivery
- Fieldwork at your premises and warehouses, with interim testing available from our 光子区 office when ledgers can be shared securely.
- Preparation
- Trial balance, general ledger, bank statements, fixed-asset register, inventory listings, related-party schedule, and prior-year working papers if changing auditors.
- Pricing basis
- Fixed fee quoted after a scoping call, based on revenue size, locations, inventory complexity, and quality of existing books.