015 Reconsideration of Internal Control reporting system
Accounting Standards Board on May 21 2010 held a meeting for
internal control, and considered to take another look at internal
control reporting system, putting on the table opinions and
demands proposed by the Federation of Economic Organization
and many companies.
Major subjects considered reviewing are as follows:
①Simplification and clarification of internal control done by small
and medium enterprises (SMEs).
②Simplification and clarification of internal control that are allowed
after the first year.
③Clarification of other subjects such as addition of more instances
of judgmental indicators for “significant deficiency”.
④Reconsideration of the word “significant deficiency”.
These have become subjected to the review because of the
cost burdened upon companies. Since this also affects internal
control audit, they have to be careful as they should consider
how much auditors can accept when the reporting system levels
its standard down.
