Mr. Masuda elected Chairman and President of the JICPA

Building a Dynamic Japanese Economy-through Accounting and Auditing Practices

Six months have passed since my appointment, in July 2007, as Chairman and President of the Japanese Institute of Certified Public Accountants (JICPA). It has been an exciting and productive period of time.

In October, JICPA hosted "The 17th Conference of the Confederation of Asian and Pacific Accountants-", held in Osaka. As its host, I exchanged views on important issues faced by professional accountants in the Asia-Pacific region. Also, in the same month, the annual conference between JICPA and the Chinese Institute of Certified Public Accountants (CICPA) was held in Beijing. This was followed by our delegates' visit to the Beijing National Accounting Institute. I was impressed by the Chinese national strategy in fostering their accounting profession. And then, last November, at the Council of International Federation of Accountants (IFAC), in Mexico City, I was truly inspired by the active efforts that have been made by all of the accounting bodies around the world.

As a result of my attendance in several international conferences during the last six months, I reaffirmed my determination to strive for an even higher quality of accounting and auditing practices in Japan.

In an increasingly global economy, all jurisdictions throughout the world rush to build the necessary accounting and auditing infrastructure. We must make serious efforts so that accounting and auditing practices are properly understood and applied. This would strengthen the Japanese economic infrastructure, increase its market transparency, and assist in maintaining our leadership position in Asian markets.

This year is the 60th anniversary of the establishment of the certified public accountancy profession in Japan. We will give further consideration to how our CPAs can contribute to the growth of the Japanese economy. At this time we are implementing our three year action plan to be accomplished by JICPA executives. This action plan will include enhancements to self-regulation, and contribution to the development of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA). The action plan will also include our contribution to the area of public sector accounting, and continued development of our profession; all of which have great significance for the Japanese economy.

Starting this April, Japanese regulations will require managements' assessment of internal control over financial reporting and quarterly financial reporting. Our audit firms are required to perform audits of managements' assessment of internal control over financial reporting, and reviews of quarterly financial statements. JICPA developed and disseminated practical guidance based on the additional requirements. Now we will monitor and provide further guidance to assist in achieving a successful implementation of the relevant regulations. As one of the key participants in the financial reporting supply chain JICPA will intensify its efforts to improve the reporting system.

Last year, the number of candidates who successfully passed the CPA examination doubled from the prior period. In Japan, our CPA membership is reaching thirty thousand. JICPA will continuously strive to improve the environ ment so that all of our members can contribute, in their own way, to the development of the Japanese society.

We appreciate your support for our activities.

• Strategies and Issues for New Executives of the JICPA(PDF/9P/47KB)