Group ICFR Systematization for Listed Companies

Group ICFR Systematization for Listed CompaniesA single ICFR system for the groupGlobal standardization from HQ to subsidiaries

Service Overview

Why Consolidated ICFR Matters

As ICFR audit is now mandatory for listed companies, building and operating consolidated ICFR that includes subsidiaries has become important for companies that prepare consolidated financial statements. This means establishing a group-wide control system so that the accounting information of subsidiaries—not only the parent—is produced and reported accurately.

Why It Matters Now

A group’s consolidated ICFR is far more complex than that of an individual company. Diverse business structures, the local accounting standards of overseas subsidiaries, and disparate IT systems make it difficult to build and operate a consistent control environment across the entire group. Deficiencies in consolidated ICFR affect the reliability of group-wide financial reporting and can become a significant liability in responding to the consolidated audit.

Our Principles

Operating Principles

Consolidated ICFR Systematization Operating Principles We approach consolidated ICFR systematization for listed companies as a task of putting the operating framework in order to raise the reliability of group-wide financial reporting. We analyze the business processes and accounting systems of the parent and its subsidiaries in an integrated way to design standardized group-level control activities. For overseas subsidiaries, we review the reconciliation of differences between local accounting standards and the group headquarters’ applicable standards (IFRS, etc.) and how to apply control activities, so that the group’s consolidated ICFR framework operates from a global, integrated perspective. Beyond formal compliance, we strengthen group-wide internal-control capabilities and foster a sustainable financial reporting environment.

Key Services

Who This Service Is For

Listed companies required to prepare consolidated financial statements
Companies needing to build and operate group-level ICFR including subsidiaries
Companies with overseas subsidiaries that struggle with consolidated ICFR systematization
Companies seeking to respond effectively to the consolidated ICFR audit

Services Provided

Support for designing and building consolidated ICFR at the group level
Proposals to standardize and integrate control activities between the parent and subsidiaries
Support for applying and operating ICFR at overseas subsidiaries
Operating-effectiveness assessment of consolidated ICFR and improvement recommendations
Support for responding to consolidated ICFR audit
Training and manual development for the group ICFR

We approach the entire audit cycle from an integrated perspective and work with you to build a financial reporting framework your stakeholders trust.