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.

Takashi Nagaoka, keynote speaker at the GAA Global Accounting and Audit Forum

“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 One at GAA Global Accounting and Audit Forum

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:

Makoto Sonoda (Moderator)

Director, Office of Japanese Delegation for IFIAR

Kerrie Waring
Chief Executive Officer, International Corporate Governance Network (ICGN)

Hiromi Yamaji
Group Chief Executive Officer, Japan Exchange Group, Inc.

Larry Bradley
Global Head of Audit, KPMG

Koichiro Kimura
Chairman and Senior Partner, PwC Japan Group

Toichi Maeda
Director, Chairman of the EBARA CORPORATION

Panel Two At GAA Global Accounting and Audit Forum

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: