Uncompromising quality as valued advisors.

Accounting Advisory

Several years have passed since the compulsory adoption of International Financial Reporting Standards (IFRS) by European public companies. Currently over 100 countries have either adopted IFRS or are considering it, and in view of the potential benefits the adoption entails, Japan is no exception. KPMG’s experience in Europe indicates that it often takes several years to adopt the business and its systems to IFRS.

KPMG AZSA LLC already assists several Japanese companies as they prepare to convert to IFRS, and additionally provides a wide range of accounting advice and other related services.

Main Services

• Advisory Services relating to IFRS Conversion
• Advisory Services relating to US GAAP Conversion
• Advisory Services relating to Accounting Systems Integration
• Advisory Services relating to Consolidated Financial Reporting
• Advisory Services relating to Fast Closing of Accounts
  
  

Internal Control and Internal Audit Services

Design, implementation and evaluation of internal controls

On 30 September 2007, the Financial Instruments and Exchange Law came into effect in Japan requiring the management of publicly listed companies to carry out formal evaluations of the organization’s internal controls over financial reporting (“ICOFR”). As part of the requirement, it is mandatory for the results of the internal controls evaluation be submitted on an annual basis.

Currently, the management of publicly listed companies reporting on ICOFR focuses solely on the reliability of financial reporting. Other significant objectives of internal controls such as compliance, operational efficiency and safeguarding of assets are not given adequate attention.

To rectify this situation, management of companies have started to expand the scope of their evaluation of ICOFR to include all objectives of internal controls. With a more comprehensive evaluation over all aspects of controls, the assessment can be more effective as well as being more transparent to external stakeholders.

Establishment, implementation and evaluation of an internal audit function

An internal audit serves as a monitoring mechanism over internal controls in an organization. In recent years, this role has grown in significance as companies look for feasible ways to establish and maintain an effective internal controls evaluation system and ways to provide better assistance to help management meet its internal controls responsibilities. In order to establish an appropriate internal audit function it is necessary to customize its role within the organization by taking into consideration the unique characteristics of a company such as the corporate culture, the scale of operations, its organizational structure and operational/structural complexities.

At KPMG AZSA LLC CPAs and other professionals within the Internal Audit and IT Audit services work together in partnership with both local and overseas KPMG member firms to assist clients in the design, implementation and evaluation of internal controls and internal audit function in the organization.

Main Services

• Advisory services relating to the design and implementation of internal controls over financial reporting
• Advisory services relating to the evaluation and audit of internal controls over financial reporting
• Training services for departments that evaluate internal controls and/or the internal audit department
• Advisory services relating to the establishment of an internal control evaluation system and/or internal audit function
• Advisory services relating to the quality improvement of an internal control evaluation work and/or internal audit function
  
  

Governance, Risk and Compliance

Businesses today are facing diversified and fast-growing risks as the global business environment undergoes rapid changes. The changes have arisen as a result of multiple factors; conditions contributing to the change include the accelerated rate of globalization, the intensifying of international competition and the breakdown in economy caused by the global financial crisis.

To keep up with the changes and manage risks, it is necessary that companies establish and maintain strong risk management systems enabling their management to implement an appropriate level of corporate governance throughout the organization and ensure its effectiveness through timely monitoring.

Equipped with broad knowledge in areas of governance, risk and compliance, and supplemented with extensive experience in assisting the leading global corporations, KPMG AZSA LLC has the capability to contribute positively towards the enhancement of the client’s corporate value.

Main Services

• Advisory services relating to Enterprise Risk Management
• Advisory services relating to the identification and mitigation of operating, financial and IT risks
• Advisory services relating to the establishment of internal governance systems
  
  

CFO Advisory

With a constantly changing economic and business environment as well as higher expectations for transparency and governance by stakeholders, the roles and responsibilities of the Chief Financial Officer of a publicly listed company is going through tremendous change. The CFOs are now expected not only to increase the accuracy of business financial forecasts, but also promote the continuous improvement of management efficiency.

KPMG AZSA LLC’s professionals from diverse disciplines can respond to such CFO needs by providing a wide range of assistance services. Some examples are identifying improvement opportunities for Accounting and Finance functions, establishing risk management systems such as corporate governance and internal audit, and the charting of IT strategies.

Main Services

• Advisory services relating to Budgetary Controls and Performance Evaluation
• Advisory services relating to Group Company Business Administration
• Advisory services relating to Cost Optimization, Process Optimization and Sourcing
  
  

IT Advisory

Organizations are becoming more dependent on sophisticated and complex IT systems to manage information that drives their business activities. Although the establishment of an effective IT strategy has become an important priority, companies frequently struggle to make the appropriate investment and fail to plan for adequate resources in order to align Information Technology with their core business. In the meantime, stakeholders are growing increasingly vocal in their demand for adequate management of IT risks such as information security.

KPMG AZSA LLC professionals with the relevant background in advisory and IT are able to assist clients with their IT strategy from the point of inception to execution and help companies derive the maximum valuefrom their IT investments.

Main Services

• Advisory services relating to IT Strategy and Planning
• Advisory services relating to the establishment of IT Governance systems
• Advisory services relating to IT Cost Optimization
• Assistance with IT Project Management
• Advisory services relating to IT Operations Efficiency
• Advisory services relating to Software Asset Management
• Advisory services relating to Information Security and Personal Information Security
• Advisory services relating to the establishment of Business Continuity Plans
• Assistance with ISO27001 (ISMS), ISO20000 (ITMS), BS25999(BCM) certification
• Advisory services relating to compliance with PCI DSS requirements
  
  

IT Audit

With the emphasis on the Sarbanes-Oxley Act (“US SOX”) and the Japanese Financial Instruments and Exchange Law (“J-SOX”) regarding the responsibility of management to design and maintain appropriate internal controls over financial reporting, the importance of rigorous IT controls has taken on renewed urgency for public companies.

Also, IT risks such as leaks of confidential information, external virus attacks, escalation in costs, inefficient design, systems poorly coordinated or poorly aligned with the business strategy, may jeopardize the long-term growth and stability of any organization.

KPMG AZSA LLC provides IT audit, advisory, and assessment services relative to the IT function. Our services encompass technological aspects, as well as staff and organizational matters, and relationships with operational systems within the organization's management cycle of IT controls, including “risk identification”, “assessment of risks and internal control”, “development of an internal control improvement plan" , "implementation of internal control" , and “monitoring of internal control”.

Main Services

• IT audit concerning financial reporting
• IT audit support related to internal systems audit
• Advisory services relating to IT internal control audit for US SOX and J-SOX
• Advisory services relating to IT control improvements for US SOX and J SOX
• Business systems control audit in development phase and after implementation
• Outsourcing servicer audit (Compliance with SAS 70 and Auditing Standards Committee Report No. 18 issued by the JICPA)
• Trust Service (Systems assurance services)
• Information security management/ISMS audit
• Personal information protection audit
• IT Governance assessment
• IT Cost Management assessment
• Project Management assessment
• Business Continuity Plan assessment
  
  

Initial Public Offering (IPO)

KPMG AZSA LLC has had the privilege of helping companies understand and navigate the process of public listing for many years. Drawing on this wealth of experience, we help our clients both with the IPO process itself and with the procedures required to fulfill the myriad requirements of public status, so that the client can achieve its ultimate goal of building long-term value.

Assistance for Start-ups

We can help the fledgling company in areas such as IT, business and figure management support, outsourcing, business succession measures, and M&A.

Transaction Services

Success with “strategic M&A” for speedily and effectively boosting corporate value in today’s complex business environment depends on effective use of professional technologies and know-how from fields as diverse as finance, tax accounting, legal affairs, business processes and human resources.

In addition, changes in laws and regulations in recent years in areas such as corporate law, tax laws and accounting rules have increased the diversity of techniques available for corporate restructuring and business reorganization, in turn enabling a more effective execution of an M&A.

In this environment, it is increasingly important to make strategic decisions, including decisions on M&A structures and pricing, while evaluating the potential for an increase in future corporate value, as well as the risks associated with such potential. The Business Advisory Division of KPMG AZSA LLC assists clients for the successful execution of M&A by bringing together a diverse expertise of professionals highly knowledgeable and well experienced in M&A, and supported by the extensive KPMG network within and outside Japan.

Main Services

• Bid Services, Pre-deal Evaluation
• Transaction Structuring
• Transaction Evaluation (Financial Due Diligence)
• Contract Assistance
• Post Deal Support
• Vendor Assistance, Vendor Initiated Due Diligence
  
  

Restructuring

Restructuring services address the needs of stakeholders during a corporate turnaround, such as identifying the fundamental causes of underperformance, addressing critical operational and financial issues, improving liquidity and operating results, evaluating capital structure and debt restructuring alternatives, and designing and implementing a comprehensive turnaround plan.

In cooperation with other member firms of KPMG in Japan, the KPMG FAS Co., Ltd., and KPMG Tax Corporation, over 160 professionals are ready to provide comprehensive services to companies under strain, secured creditors, unsecured creditors and other stakeholders in complex restructuring engagements.

Other services

• Pension-Related Advisory
• Investment Banking Products Related Services (Structured Finance/J-REIT/Private Equity Funds)
• CSR (Corporate Social Responsibility) Advisory
• Industry-Academia-Government Collaboration Advisory
• Intellectual Property Related Advisory
• PFI (Private Finance Initiative) Advisory