Federal Budget 2024 - How will this impact your business? Read the latest insights
The concept of ‘internal control for financial reporting' is somewhat universal.
Yet, depending on regulations, specific requirements or underlying principles, it can be slightly different from business to business.
J-SOX is a head-office driven process that many Australian subsidiaries of Japanese Parent companies have had to adopt.
Our client was a subsidiary of a US-listed entity, which was then acquired by a Japanese company (Parent company).
While its immediate parent was the US entity, the client was deemed out-of-scope due to size. Certain processes were tested directly by the internal auditor of the US entity for the US-SOX purpose.
Once the Japanese Parent came into the picture, the client was scoped in for J-SOX purposes.
The Australian CFO was notified of this fact in August for a March fiscal year-end. There was a bit to do and the timeframe was tight.
In the second year, Grant Thornton challenged the identified key risks and controls and optimised the matrix, which resulted in a saving of two-week people-hours.
During the third year, the outbreak of coronavirus restricted site visits. However, because of the established framework and continuity of the team, Grant Thornton delivered the quality outputs that met our client’s expectations and as required by the client’s external auditor on time.
The outsourced CFO services offering engaged by the Parent Company ensured they had the support of experienced professionals to manage all finance needs in the interim period. This also meant they had the time and space to enter the recruitment process for a CFO, allowing for a better understanding of the exact skillsets required of the role.
The Grant Thornton team also managed the Australian entity's statutory compliance (ie income tax returns, PAYG withholding, GST, FBT and corporate secretarial matters), EOFY reports to the Parent company, and technical accounting support (adoption of lease accounting).
With over 15 years’ experience in Japan, Australia and the USA, Shoko offers unique experience and insight into how to bring multi-cultural and multi-disciplinary teams together in support of M&A, international expansion and partnership and business advisory.
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