Exposure draft to revise the auditing standards: the going concern assumption and the response to fraudA draft has been published to review the rules for the audit that checks a company's financial statements
On October 16, 2026 (Reiwa 8), the Audit Committee of the Business Accounting Council at the Financial Services Agency published "Revision of the Auditing Standards (Exposure Draft)." The review has two pillars: the auditor's response regarding the going concern assumption, which is the premise that a company will continue its business, and the auditing standards on fraud. A comparison table of the old and new provisions of the auditing standards (extract) was released together with the draft. Comments are due by 5:00 p.m. on Monday, November 16, 2026.When experts from outside a company check whether the financial statements the company prepared are correct, that is called an audit. On October 16, 2026, a council of the national government published a draft to review the rules for how that checking is done. Two things are being reviewed: how to check whether the company is likely to be able to keep going, and how to respond to cheating. Comments are accepted until 5:00 p.m. on November 16.
- October 16, 2026The exposure draft on revising the auditing standards is published
- October 16 to November 16, 2026Comments are invited (accepted by mail or through e-Gov)
- November 16, 2026, 5:00 p.m.Deadline for comments (must arrive by this time)
- 1. Publish a draftThe exposure draft was published on October 16, 2026
- 2. Gather commentsComments are accepted until 5:00 p.m. on November 16, 2026
- 3. Decide the contentThe content is then examined in light of the comments received