Open AccessComparison of Internal Control Systems in Japan and China
Author(s) -
Takahiro Satô,
Ping Jia
Publication year - 2012
Publication title -
international journal of business administration
Language(s) - English
Resource type - Journals
eISSN - 1923-4015
pISSN - 1923-4007
DOI - 10.5430/ijba.v3n1p66
Subject(s) - internal control , control (management) , safeguard , business , accounting , china , due diligence , order (exchange) , law , finance , economics , international trade , political science , management , audit
In Japan, "Corporate Law" and “Financial Instruments and Exchange Law" stipulate the internal control system. Stipulations in “Corporate Law” tend towards all levels the in the company, while stipulations in “Financial Instruments and Exchange Law” are more inclined towards the accuracy of financial reporting. Although the internal control systems stipulated by these two laws have many of differences, their essence is the same: perfecting a comprehensive internal control system. In order to safeguard the normal operation of internal control system, provisions in the law require that directors act in due diligence toward establishing an internal control system