Japanese Institute of Certified Public Accountants

In Japan, the Financial Services Agency (FSA), the Certified Public Accountants and Auditing Oversight Board (CPAAOB), and the Japanese Institute of Certified Public Accountants (JICPA) work together to operate the quality assurance review system established under the Certified Public Accountants Act. JICPA continues to conduct quality assurance reviews through its Quality Control Review Team, while its Quality Control Committee develops and updates the applicable review standards and procedures.

JICPA has maintained ongoing processes to support the implementation of Statement of Membership Obligation 1 (SMO 1) requirements. In particular, it continues to revise its quality management standards and related guidance to align with international developments, including the adoption and implementation support for the International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2). Recent activities include updated practical guidance, quality management tools, and Q&A materials to support firms in implementing the revised standards.

Following the 2023 amendments to the Certified Public Accountants Act, the registration framework for firms auditing listed companies now has explicit legal backing. JICPA continues to maintain and publish the list of approved and registered firms together with information on firms’ quality control systems, thereby strengthening transparency and public confidence.

To support members and strengthen implementation, JICPA has undertaken extensive educational and technical support activities. These include seminars on the quality assurance review system, interactive workshops led by former quality control reviewers, training sessions on compliance with revised quality management and ethics standards, and seminars based on CPAAOB case reports from inspection findings. JICPA has also expanded targeted support for small and medium-sized audit firms through practical implementation guidance, consultation functions, and regular meetings to exchange views on review findings and remediation actions.

In addition, JICPA has supported digitalization initiatives aimed at improving audit quality, including support for electronic audit documentation systems, information technology infrastructure, cybersecurity measures, and training on the effective use of audit technology. These initiatives are particularly focused on strengthening the quality management capabilities of small and medium-sized firms.

JICPA also continues to publish annual reports on the operation of the quality assurance review system and engages with capital market participants, audit and supervisory board members, and investors to promote understanding of the review system and audit quality expectations.

Based on these well-established and continuously improving processes, the fulfillment status for SMO 1 remains Sustain.

Current Status: Sustain

The Certified Public Accountants Act establishes the initial professional development requirements for the profession in Japan. These include passing the Certified Public Accountant examination administered by the Certified Public Accountants and Auditing Oversight Board (CPAAOB), completing the required practical experience, completing the professional accountancy education program, and passing the final assessment administered by the Japanese Institute of Certified Public Accountants (JICPA). The CPAAOB continues to review and administer the examination framework annually, while JICPA and the Japan Foundation for Accounting Education and Learning (JFAEL) support the professional accountancy education program and final assessment process.

JICPA maintains continuing professional development requirements for its members and publishes the related requirements on its website. Members are required to complete 120 credits over a rolling three-year period, with a minimum of 20 credits annually. Additional annual subject requirements apply in professional ethics and tax, and members engaged in statutory audits must also complete credits in audit quality and fraud.

JICPA continues to undertake activities to support the adoption and implementation of the International Education Standards (IES). In March 2026, it published the English translation of Toward a Systemic Integration for the Lifelong Development of CPA Professional Competence (2025), which explicitly uses the IES as the foundation for its consideration of competence development across the full professional lifecycle, including pre-qualification education, the examination, practical experience, the professional accountancy education program, final assessment, and continuing professional development. The report also notes that JICPA had published an interim report in August 2024 and engaged with academics, relevant government authorities, accounting firms, and other stakeholders as part of this work.

JICPA has also continued to strengthen member support in emerging competency areas. In 2023, it issued its Sustainability Capacity-Building Policy and Actions, which set out a draft syllabus for sustainability education, expanded sustainability-related training programs and seminars, and linked those programs to defined syllabus subjects and levels. More recently, JICPA’s 2025 integrated reporting materials highlight continued educational activity in areas such as sustainability assurance and broader accounting education.

In addition, JICPA continues to review the overall competence development framework for Certified Public Accountants in Japan on an ongoing basis. Its recent publications emphasize integrated and comprehensive evaluation of professional competence development and continued alignment of education, training, ethics, and lifelong learning with changing market and public interest needs.

Based on these ongoing activities to maintain the qualification framework, monitor continuing professional development, review competence requirements, and support members with implementation in both established and emerging areas, the fulfillment status for SMO 2 remains Sustain.

Current Status: Sustain

Auditing standards in Japan are established by the Business Accounting Council (BAC) under the Financial Services Agency (FSA) and are supplemented by the Statements on Auditing Standards (SAS) and Statements on Quality Management Standards (SQMS) issued by the Japanese Institute of Certified Public Accountants (JICPA). Together, the standards issued by the BAC and the related SAS and SQMS issued by JICPA comprise Japanese generally accepted auditing standards (Japanese GAAS). All statutory audits in Japan are conducted in accordance with Japanese GAAS.

JICPA continues to maintain ongoing processes to support convergence with the International Standards on Auditing (ISA) and the International Standards on Quality Management issued by the International Auditing and Assurance Standards Board (IAASB). Following the BAC’s revision of the quality management standards in 2021 to reflect International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised), JICPA revised the related SQMS and SAS in 2022 and has continued to update related standards and guidance thereafter. In particular, JICPA revised the relevant SAS in 2023 to reflect International Standard on Auditing 600 (Revised).

To support implementation by members, JICPA issues practical guidance, implementation Q&As, illustrative materials, and research papers when standards are newly issued or revised. Recent support activities include seminars and guidance on quality management systems, group audits, fraud risk, and the use of technology in audit engagements. JICPA also provides targeted implementation support to small and medium-sized audit firms through workshops, case studies, and practical tools.

JICPA continues to require members engaged in statutory audits to undertake continuing professional development in audit quality and fraud-related topics. Training programs include case studies based on findings from inspections and quality assurance reviews, which are used to strengthen practical implementation of auditing standards and improve audit quality across the profession.

JICPA also continues to actively contribute to international standard-setting through representation and technical participation in the work of the IAASB. The institute reviews exposure drafts and consultation papers and submits comment letters on proposed international standards and revisions. Through this ongoing participation and its domestic implementation activities, JICPA maintains well-established processes to support adoption and implementation of auditing standards.

Based on these ongoing standard-setting support activities, implementation guidance, member education efforts, and international engagement, the fulfillment status for SMO 3 remains Sustain.

Current Status: Sustain

In Japan, ethical requirements for all Certified Public Accountants (CPAs) are established under the Certified Public Accountants Act together with the Code of Ethics issued by the Japanese Institute of Certified Public Accountants (JICPA). JICPA continues to maintain and update its Code of Ethics through its ethics standard-setting processes, and its public materials state that the Code is developed in conformity with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA). Recent JICPA materials also show continued work to incorporate international revisions and to engage with external stakeholders in that process.

JICPA undertakes ongoing activities to support adoption and implementation of ethical requirements by members. These include updating implementation guidance and practical Q&As alongside amendments to the Code, making those materials available on its website, and providing consultation channels for members on ethics-related matters. JICPA’s published materials also indicate that it has disseminated international ethics materials and related explanatory resources, including materials on revisions to the definitions of listed entity and public interest entity, the definition of engagement team and group audits, and more recent sustainability-related ethics developments.

JICPA continues to support members through education and training in professional ethics. It requires members to complete continuing professional development that includes a mandatory ethics component, and recent JICPA materials continue to highlight the role of ethics training within its competence-development framework. JICPA has also linked ethics and independence content to newer areas such as sustainability assurance through its published syllabuses and educational materials.

In addition, JICPA remains active in the international ethics standard-setting process. Its public reporting states that it proactively provides views during the formulation of the IESBA Code and exchanges views with relevant stakeholders, including government bodies, economic groups, securities exchanges, and investor groups, when developing the national Code. JICPA also publishes reports and explanatory materials to keep members informed of IESBA developments.

JICPA has also continued its outreach to reinforce ethical awareness among members. Its recent integrated reporting highlights the Declaration of Ethics initiative, which was developed to make the Code easier to understand and to encourage compliance by emphasizing the mindset CPAs are expected to maintain in performing their duties.

Based on these well-established and continuing activities to update the Code, support implementation through guidance and consultation, provide ethics training, and participate in international standard setting, the fulfillment status for SMO 4 remains Sustain.

Current Status: Sustain

In Japan, the Ministry of Finance (MoF) is responsible for establishing public sector accounting standards for the central government, while the Ministry of Internal Affairs and Communications (MIC) is responsible for the accounting framework applicable to local governments. Public sector financial reporting is based on national accrual-based standards and is not aligned with the International Public Sector Accounting Standards (IPSAS) as issued by the International Public Sector Accounting Standards Board (IPSASB).

As the Japanese Institute of Certified Public Accountants (JICPA) does not have direct standard-setting authority in this area, it continues to focus on advocacy, awareness raising, and member support activities related to public sector accounting and the promotion of international best practices.

JICPA continues to exchange information and views on developments of the IPSASB with the MoF, MIC, and other relevant public sector stakeholders on a regular basis. The institute also nominates members to relevant public sector accounting committees and working groups when requested by government bodies and continues to support dialogue on developments in public sector financial reporting and auditing.

To support members working in the public sector, JICPA maintains specialized public sector committees and training initiatives. Its public sector accounting and auditing committees continue to provide training programs, seminars, technical articles, and information sharing on developments in government accounting, local government accounting, and public sector audit practice. These activities are aimed at improving the quality of services provided by members engaged in public sector work.

JICPA also continues to support international standard-setting in this area through active participation in the work of the IPSASB, including board-level representation and technical support. The institute reviews exposure drafts, prepares comment letters, and disseminates summaries of IPSASB meetings and standard-setting developments to its members through its website and technical publications.

In addition, JICPA continues to support awareness raising and capacity building in the public sector through seminars and outreach activities for public officials and local assembly members, with the objective of broadening the understanding and use of accrual-based financial information in the public sector.

Given the nature of its mandate and the continued ongoing activities undertaken to advocate for international best practices, support members in public sector roles, and contribute to IPSASB standard-setting, the fulfillment status for SMO 5 remains Sustain.

Current Status: Sustain

The Certified Public Accountants Act establishes the legal basis for the investigative and disciplinary system in Japan. The Japanese Institute of Certified Public Accountants (JICPA) is authorized to carry out investigative and disciplinary procedures for its members, while the Financial Services Agency (FSA) may take administrative and enforcement actions where necessary. JICPA continues to state that its system is aligned with the requirements of Statement of Membership Obligation 6 (SMO 6), and the current structure continues to include information-based and complaint-based approaches, separate investigation and disciplinary stages, an appeal mechanism, and oversight arrangements intended to support objectivity and transparency.

JICPA continues to maintain committees and procedures to review complaints and other information indicating possible misconduct. Current official English materials refer to the Audit Practice and Review Committee, the Investigative Committee, the Disciplinary Committee, and the Appeals Committee as part of the disciplinary framework. JICPA also indicates that these committees are structured independently from the institute’s executive leadership, and that the Audit Practice Monitoring Board reviews the activities of the relevant committees to enhance transparency and objectivity. This updated terminology is more current than the older references to the Review Board for Appropriate Procedures and the Self-Regulatory Monitoring Conference.

JICPA continues to undertake preventive and implementation-support activities for members in this area. Its recent self-regulation and integrated reporting materials indicate that it publishes annual reports and case-related materials, provides information on recurring quality and compliance issues, and shares findings and expectations arising from the quality control review system. These activities help members and firms better understand the types of deficiencies that may lead to disciplinary consequences and support stronger compliance with professional requirements.

There is also continued linkage between the quality assurance and investigative and disciplinary systems. The Certified Public Accountants and Auditing Oversight Board (CPAAOB) examines JICPA quality control review reports and, where necessary, conducts inspections and may recommend that the FSA take administrative measures. Recent CPAAOB monitoring materials also show ongoing cooperation with JICPA, including sharing review results, providing training for reviewers, and discussing how to strengthen supervision and instruction, particularly for small and medium-sized audit firms. This continued interaction supports the effective operation of the broader enforcement framework.

Based on the continued operation of a legally established and multi-stage investigative and disciplinary system, together with JICPA’s ongoing efforts to update procedures, publish implementation materials, and support preventive compliance by members, the fulfillment status for SMO 6 remains Sustain.

Current Status: Sustain

In Japan, the Accounting Standards Board of Japan (ASBJ), under the auspices of the Financial Accounting Standards Foundation (FASF), is responsible for the development and deliberation of private sector accounting standards, and all standards issued by the ASBJ are subject to endorsement by the Financial Services Agency (FSA). The IFRS Foundation jurisdiction profile for Japan continues to state that International Financial Reporting Standards (IFRS) Accounting Standards are permitted but not required for domestic public companies, and that Japan permits four accounting frameworks for consolidated financial statements of listed companies: IFRS Accounting Standards, Japanese generally accepted accounting principles (Japanese GAAP), Japan’s Modified International Standards (JMIS), and United States generally accepted accounting principles. The same profile also confirms that the IFRS for SMEs Accounting Standard is neither required nor permitted in Japan.

As the Japanese Institute of Certified Public Accountants (JICPA) does not have direct standard-setting authority in this area, it continues to focus on promoting understanding of IFRS Accounting Standards, supporting implementation by members, and contributing to international standard-setting processes. JICPA’s public profile states that it works with stakeholders such as the FSA, the ASBJ, the International Accounting Standards Board (IASB), and the IFRS Foundation to promote IFRS in Japan, and provides seminars, workshops, study sessions, and knowledge-sharing opportunities for members.

Recent activities show that JICPA continues to support members with implementation of new and revised IFRS Accounting Standards through technical events and outreach. In 2024, JICPA and FASF co-hosted an IASB seminar on IFRS 18 Presentation and Disclosure in Financial Statements with IASB board members and technical staff, and in March 2026 JICPA participated in an explanatory session on the IASB exposure draft Risk Mitigation Accounting with IASB members and staff. These activities demonstrate continuing efforts to help members understand and implement current and forthcoming IFRS requirements.

JICPA also continues to maintain channels for direct member support and technical engagement. Its IFRS seminar portal provides a dedicated contact point for IFRS inquiries, and its public comments page shows that it continues to submit comment letters on IASB and IFRS Foundation consultations, including the IFRS Foundation Due Process Handbook in March 2025 and several IASB exposure drafts in 2024 and 2025. This indicates ongoing participation in the international standard-setting process as well as continued dissemination of IFRS developments to members.

In addition, JICPA’s recent public reporting highlights broader work to strengthen member capability in evolving corporate reporting areas, including sustainability-related reporting and assurance, which complements its support for IFRS implementation and international reporting developments more generally.

Based on these continuing activities to promote IFRS Accounting Standards, support members through seminars and technical resources, maintain direct implementation support channels, and contribute actively to the IASB and IFRS Foundation due process, the fulfillment status for SMO 7 remains Sustain

Current Status: Sustain