Global Accounting and Audit Forum
On April 15, 2024, in Osaka, the Global Accounting Alliance and the Japanese Institute of Certified Public Accountants (JICPA) co-sponsored an exclusive by-invitation-only forum (the “Forum”). The Forum was organized by Nikkei and supported by the following organizations: the Japan Financial Service Agency (FSA); the Japan Audit & Supervisory Board Members Association; the Japan Association of Corporate Directors; the Japan Exchange Group; and the Institute of Internal Auditors.
The audience included more than 125 persons from various industries, including accounting companies, academia, investors, regulators, and business leaders. The opening remark was given by Tetsuya Mogi, President, The Japanese Institute of Certified Public Accountants (JICPA), and the closing remark was provided by Mitsuo Tsuruta, Deputy President, The Japanese Institute of Certified Public Accountants (JICPA).
As the Chair of IFIAR, the Secretary General of Certified Public Accountants and Auditing Oversight Board, and the Deputy Commissioner for International Affairs at the Japan FSA, Mr. Nagaoka plays a leading role in both Japanese and international regulatory fields, and he delivered the keynote speech.
After reiterating the importance of audit and audit to create a healthy capital market globally, the regulator shared his view on top four challenges faced by the audit/assurance industry, namely audit firm governance, the use of technology in audit, sustainability reporting and assurance, and the attractiveness of audit and audit profession.
“I hope all the auditors will face up to the challenges with strong pride in the noble and significant role they play, and live up to the expectations from all the players in the capital markets.” – Takashi Nagaoka, Chair, IFIAR
Panel I, The value of audit and assurance in a changing world, discussed the following questions:
- How can audit/assurance provide value not only for financial information disclosures, but also in non-financial, intangible areas, such as sustainability disclosure information?
- How do investors and preparers think auditors can contribute to corporate value creation activities, including corporate governance?
- What are the challenges in audit firm governance to maintain high quality audit?
The panelists were:
Panel II, The challenge of attracting young talent to audit and assurance, discussed the following questions:
- Considering that auditor’s ultimate clients are investors, how can we transform the firm culture to help young professionals find purpose and enhance commitment to earn investors’ trust?
- How can we incorporate the needs of the capital market into education and training so that audit and assurance stay relevant
- Given that required skills in audit might drastically change in the future due to AI and other technology, how can audit firms embrace the firm culture and communicate the attractiveness of audit profession to younger generation?
- How can PAOs support young professions and audit firms in delivering high-quality audit education that will support the professional development of auditors and aim to retain them within the audit sector?
The panelists were:
The recordings of the Forum are available on Nikkei’s channel.
Prominent speakers and several audience members delivered the following messages to future young professionals.
Speakers
Takashi Nagaoka
Makoto Sonoda
Koichiro Kimura
Kerrie Waring
Yamaji Hiromi
Larry Bradley
Tomoyuki Furusawa
Ainslie van Onselen
Masami Katakura
Yoshinori Kawamura
Jen Haskell
Audience Members
Barry C. Melancon
Tatsumi Yamada
Masataka Kubota
Kohei Kan
Christine Albrecht
Jen Sisson
Yuiko, an upcoming university student, shares insights from her visit to Osaka and attendance at the Global Accounting and Audit Forum.