Administrative Action Against the Audit Firm and Assessment of Its Impact on Our Audit
First written in FY2024. 1 of 2 entries say "Materialised", first in FY2024. Latest entry: FY2025.
22 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The Company's Audit & Supervisory Board members and Audit & Supervisory Board evaluate the audit firm and decide whether to reappoint it. Specifically, they establish evaluation criteria covering quality control, the audit team structure, audit fees, communication and efforts to address fraud, among other items. The current audit firm meets these criteria, in addition to the requirements underlying the decision to select it despite the above suspension of activities.」
The audit firm that had received an administrative sanction was reviewed against the evaluation criteria, and the Company decided to reappoint it on the basis that it met those criteria. - FY2024MaterialisedAnnual report
「太陽有限責任監査法人 received an administrative sanction from the Financial Services Agency dated 26 December 2023. The outline is as follows: Details of the sanction: suspension, for 3 months from 1 January 2024 through 31 March 2024, of activities relating to entering into new contracts. The Company determined that this did not affect 太陽有限責任監査法人's eligibility to serve as its independent auditor and, after receiving a report on the contents and progress of the business improvement plan submitted to the Financial Services Agency, determined that there would be no impact on its audit work. It therefore selected the firm.」
The Company disclosed that the audit firm had been sanctioned with a 3-month suspension of activities relating to entering into new contracts and, after confirming the contents and progress of its business improvement plan, determined that there was no impact on the Company's audit and reappointed the firm.