MOL-IT and MOL headquarters in Tokyo, Japan are making a concerted effort to meet
the targets and requirements of JSox by standardizing and enhancing our procedures
and policies. 
JSox is the nickname of Japan's Financial Instruments and Exchange
Law, which was promulgated on June 14th, 2006. Inspired by corporate scandals such
as the Kanebo, Livedoor, and Murakami Fund episodes, the law has been dubbed "the
Japanese version of the Sarbanes-Oxley Act," hence JSOX.
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The Internal Control Committee of the Business Accounting Council of the Japanese
Financial Services Agency provided final Implementation Guidance for Management
Assessment and Audit of Internal Controls over Financial Reporting (ICFR) in February
2007. The Implementation Guidance provides details to Japanese companies on how
to implement a Management Assessment of Internal Control over Financial Reporting
as required under the Financial Instruments and Exchange Law.
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As Thomas Friedman said the world is getting flat. Businesses are learning from
the mistakes made by individuals and corporations across the globe. JSOX, officially
known as the Financial Instruments and Exchange Law as mentioned above, is scheduled
to go into effect in April 2008 for roughly 3,800 companies listed in Japan, along
with their foreign subsidiaries.
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Forrester Research lists the following challenges and difference between JSOX and
SOX:
- Professional services. Japan has fewer than 10% of the number of qualified accountants
than the US.
- Independence of auditors. While the concept of auditor independence exists in the
Japanese market similar to the US, many Japanese firms can and will rely on the
influence and recommendations of their audit firms.
- Audit automation is critical. With the extreme shortage of auditors compared to
US per capita numbers, this shortage will increase the requirement and necessity
for process efficiency in the internal audit process and software that can support
these processes.
- Support of IT governance. In the November guidance regarding the scope of the JSOX
process, it is clear that IT controls are a central point of focus for JSOX
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| Please click here for more information on JSox |
