Field Notes · 15 September 2025
First Statutory Audit After Years of Owner-Managed Books
What owner-managers in Niigata should expect when commissioning their first independent financial statement audit.
Many successful regional businesses operate for years with tax returns and management accounts but no independent auditor’s report. A bank refinancing, foreign investor, or revised articles of incorporation can change that overnight.
Opening balances take time
The first year of a statutory financial statement audit includes procedures on opening equity, retained earnings, and significant asset balances brought forward. Expect questions about how land, machinery, and inventory were valued historically.
Separate the tax file from the audit file
Tax adjustments that were acceptable for filing may need different treatment in the financial statements. Bring both the tax accountant and the bookkeeper into the planning meeting so Coral Bay can see where the two ledgers diverge.
Pace the year
Companies that start planning in the autumn rarely scramble in March. Share draft policies for revenue recognition and inventory costing early; we would rather refine wording before year-end than rewrite disclosures under deadline pressure.