All audit partners of YAESU AUDIT & Co. are unlimited liability members, which are different from Limited Liability Partnership(L.L.P.) the larger audit firms create. Our audit partners continue to operate in the partnership-style management to optimize business operations through mutual surveillance and supervision.
Also, by not segregating individuals who provide audit services and those with management and surveillance functions, we maintain integrated operations and eliminate the possibility that any individuals other than the unlimited liability members (i.e. audit partners) who are also Certified Public Accountants exercises improper influence on our audit assurance services.
Unlike the top-down type management style which is common in large scale organizations, the firm’s governance is conducted based on decision making through meetings by all 15 unlimited liability members (audit partners) and we determine that maintaining its effectiveness under the current organization size is possible. Therefore, we avoid uncontrolled expansion of the organization and focus on quality maintenance and stable growth under an appropriate size.
We have established a members’ committee, which consists of all 15 unlimited liability partners, as well as a quality control committee and a review committee. Through dozens of meetings per year, audit quality is improved and fairness of audit opinions is maintained. Each committee commits to solve individual cases promptly.
We consider that financial stability of the firm is extremely important to secure fairness and independence of our audit opinions. Accordingly, we have a policy to maintain high capital adequacy ratio (82.6% as of June 30, 2020・83.6% as of June 30, 2021), to avoid excessive dependence to a limited number of clients in terms of audit fees and to participate in the highest level of professional liability insurance coverage available to Certified Public Accountants.
Our firm complies with Japanese laws and other regulations regarding personal information and reviews and improves the contents of the policy as appropriate.
While being a partnership based on stable, personal relationships, we also take great care in the selection of partners considering their personality, expertise and diversity of each individual so that homogeneous and closed-style operations are avoided. All of our current audit staffs (i.e. professional members) are considered potential audit partners for the next generation. To develop human resources who have various backgrounds, we not only bear all expenses for 40 units of CPE annually that are individually selected and taken by each staff, but also encourage self-development from our staff and hold internal firm training events on the focused themes.
Regarding the operation of the audit firm, we promote interaction with Kreston Global, networking within the Kreston Japan group and other business partners to actively exchange opinions and hold discussions internally as well as externally.
Last updated: September 17, 2021