13 June 2006
Aarata, the new Japanese accounting firm that is being set up with the
support of the PricewaterhouseCoopers global network, has now completed
the necessary steps to open for business. These include confirmation of
incorporation and registration from the Legal Affairs Bureau in Japan
and permission for the use of the new name from the Japanese Institute
of Certified Public Accountants (JICPA).
In addition, PricewaterhouseCoopers Aarata has applied for registration
with the Public Company Accounting Oversight Board (PCAOB) in the United
PricewaterhouseCoopers Aarata, which will be a member firm of the
PricewaterhouseCoopers global network, will adopt international best
practices in accounting and auditing. It will also use the experience of
the PricewaterhouseCoopers international network in developing best
practice systems of risk management, audit quality and controls, all of
which stem from a “tone at the top” focused on quality, trust and
compliance with a clear foundation of ethical business conduct.
In addition to working on the development of its new member firm in
Japan, as previously announced PricewaterhouseCoopers is also committed
to continue working with and providing international support to
ChuoAoyama, its established Japanese network firm.
PricewaterhouseCoopers Aarata will be open for business from 1st July
2006. It is expected that by the end of the year it will have grown to
have approximately 80 partners and will then grow substantially over the
next three years. PricewaterhouseCoopers Aarata takes the sanctions
passed on ChuoAoyama by the Financial Services Agency (FSA) of Japan
very seriously and will fully respect both the requirements and intent
of these sanctions.
The name “Aarata” which signifies “new and fresh” was chosen to reflect
the new perspective that PricewaterhouseCoopers Aarata will bring to the
Japanese auditing market.
PricewaterhouseCoopers Aarata will service both domestic and
international companies in Japan however it is anticipated that at least
initially the firm will primarily focus on Japanese multinational
companies, Japanese companies listed on exchanges outside Japan and
companies which are Japanese subsidiaries of major international
PricewaterhouseCoopers Aarata will provide a full range of audit and
accounting services, as well as advice relating to Sarbanes Oxley 404
reporting and internal controls.
In order to address the increasingly complex business environment that
many companies operate in, PricewaterhouseCoopers Aarata will segment
its audit services into three main industry groups; Consumer and
Industrial Products (CIPS); Technology, Information, Communications and
Entertainment (TICE); and Financial Services. This segmentation will
help to improve industry knowledge amongst partners and staff with the
aim of enhancing levels of audit quality.
A clear management structure has been set up for PricewaterhouseCoopers
Aarata and from September 1st 2006 a management board comprising an
interim Chief Executive Officer, Chief Financial Officer, Chief
Operating Officer and Chief Quality Officer will be appointed,
emphasising the firm’s commitment to implementing the highest quality
The interim CEO will serve for one year during which time the proper
processes and procedures will be put in place to elect a permanent CEO
who will take office in September 2007.
PricewaterhouseCoopers Aarata will also put in place an oversight board
to review the policies and practices of the management board.
Until the management board is appointed on September 1st 2006
PricewaterhouseCoopers Aarata will be led by Mr Kazutaka Iwashita, one
of the founding partners of the firm. Mr Iwashita was previously an
audit partner of Price Waterhouse Japan with extensive client experience
both in Japan and internationally. He has also worked on technical and
professional affairs for the JICPA.
“I am delighted to announce the incorporation of what will be the newest
member firm of the PricewaterhouseCoopers network” said Sam DiPiazza CEO
PricewaterhouseCoopers International. “We face a number of significant
challenges in Japan but I am confident that the strategy that we have
developed, supporting the establishment of PricewaterhouseCoopers Aarata
and continuing to work with ChuoAoyama on its reform programme, will be
the best way of improving audit quality and serving all of our clients
both internationally and in Japan.”
“We are dedicating a substantial amount of time and effort to working
with PricewaterhouseCoopers Aarata to put in place best international
practices for audit quality and risk management and will continue to
work closely with the management team of PricewaterhouseCoopers Aarata
as the business grows and develops in the coming months and years.”