How materiality shapes what we test on your ledger
A plain-language look at how auditors set materiality and why a ¥2 million misstatement may matter in one company and not another during financial auditing.
Field Notes
Writing from the audit file
Short articles for finance directors and controllers preparing for financial auditing — materiality, inventory counts, cut-off, and what belongs in a management letter.
Preparing inventory for observation day
Practical steps for warehouse supervisors and controllers before auditors attend a physical inventory count as part of a financial statement audit.
What belongs in a management letter — and what does not
Clarifying the difference between an auditor’s opinion on the financial statements and the separate management letter that records control observations.
Year-end cut-off for sales and purchases in trading companies
Cut-off testing remains one of the most common sources of audit adjustments for Japanese trading firms — here is how to tighten shipping and receiving evidence.