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The Key to a Meaningful Cross border Audit

Experienced specialists specializing in overseas audits in developing countries at reasonable prices

Overseas audits, especially global audits in developing countries, can be challenging. It is difficult when there is no experienced personnel internally or when understanding is limited to specific countries. With too many locations, it’s ideal to visit important large-scale sites, but there is not enough flexibility to inspect every other site. Safety is also a concern in developing countries. On the other hand, relying on reputable major global firms for external expertise is expensive (ranging from a few million to over ten million yen), and they often fail to accommodate our needs flexibly. Many overseas business management departments, internal audit departments, auditors, and executives, from small to large listed companies expanding globally, have voiced such concerns.

Recognizing the need for a firm that specializes in internal audits and fraud investigations in challenging developing countries, we established a company to provide experienced expert support for audits and investigations in developing countries at reasonable prices.

Deepening Audits Beyond the Checklist

In listed companies, internal control audit systems (J-SOX audits) involve comprehensive control of the entire company, evaluation of the effectiveness of business processes, on-site verification based on self-assessment, and more. With a checklist format, audits can be completed, and reports can be generated if there are formats and checklists. However, the question arises: Have you thoroughly investigated whether fraud has actually occurred at that site? Can you confidently conclude that no one else could have found all possibilities? ACFIRM’s experts, through handling numerous cases, accumulate, deepen, share, and train, aiming to return with the conviction that they have gone as far as possible within the limited schedule and information, resolving concerns.

The Secret to Detecting Fraud

Having specialized in discovering and preventing fraud, we are often asked about the tips and secrets for finding fraud. After years in this field, I believe there are no magical audit procedures or special abilities to bring fraud to light. It comes down to diligence, focus, and thoroughness—doing everything possible with determination. While some may find it contradictory for a self-proclaimed expert to talk about such philosophical aspects, the reality is that, in addition to knowledge about accounting and auditing at the level of an accountant, expertise in various fraud patterns, language skills (English), and knowledge of local business practices, accounting, and tax laws, collaboration with local experts is essential. The commitment and determination of audit and investigation professionals to thoroughly address the possibilities and return with the conviction that “nothing more could be done” is crucial to maximizing the discovery and deterrent effects of fraud.

Cosourcing as the Best Audit Team

Furthermore, an ideal audit team, in our view, involves both a company representative with a deep understanding of the client’s business and a team composed of ACCFAM experts specializing in overseas audits, along with local experts—known as a co-sourcing team. This team structure allows for more in-depth and meticulous audits and investigations, particularly when there is a profound understanding of the client company’s business and people. Consulting as needed during the audit or investigation process, narrowing down risks, and flexibly changing procedures on-site are the approaches we take.

Of course, we also offer full outsourcing arrangements or arrangements where only local experts are provided on a daily basis, depending on the client company’s needs. Whether accompanying junior staff in the audit department, providing support for English or local language requirements, or customizing support based on the client’s needs, we offer flexible assistance. Nevertheless, recommending the inclusion of local experts, as mentioned earlier, significantly enhances the quality of the audit and is strongly advised.

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