Internal Control Systems
We support the design, implementation, and evaluation of internal control systems tailored to company size and industry, from J-SOX compliance to practical controls for SMEs.
Coverage Areas (Examples)
The scope of internal controls required varies by company size, stage, and industry. We focus primarily on the themes listed below.
Entity-Level Controls
We help build entity-level controls — control environment, risk assessment processes — designed around how management actually works, not checklist formality.
Examples： Control environment & ethics assessment / Risk assessment process design / Information & communication systems / Monitoring activity design
Process-Level Controls
We design process-level controls for sales, purchasing, and closing — balanced between control effect and operational burden, grounded in actual workflows.
Examples： Sales & procurement process controls / Fixed asset & inventory controls / Payroll & expense controls / Closing & financial reporting verification
IT General & Application Controls
We build and assess IT controls — access and change management — adapted to modern, SaaS-centric system landscapes.
Examples： Access management (IAM) / Change management controls / Operations & backup management / SaaS & cloud service control assessment
J-SOX & IPO Readiness
We support J-SOX documentation and evaluation and IPO readiness — anticipating the points auditors and underwriters will raise.
Examples： ICFR (Internal Control over Financial Reporting) / Process documentation (RCM, flowcharts) / Design & operating effectiveness evaluation / Deficiency identification & remediation plan
Controls for Cloud & AI Environments
We design controls for new ways of working — generative AI, cloud migration, remote work — aimed at safe adoption rather than restriction.
Examples： Generative AI usage control rules / Control redesign for cloud migration / Remote work environment controls / Data governance framework setup
Our Strengths
Effective Controls from Big Four Perspective
CPAs with Big Four internal control audit experience design controls that actually work—not just on paper. We proactively address weak points before external auditors flag them.
Where Conventional Control Models Fall Short
We design controls for risks conventional frameworks never anticipated — cloud, generative AI, remote work. A CPA with hands-on system development experience designs them around how the technology actually behaves.
Practical Controls for Your Stage
From J-SOX for listed companies to IPO prep for startups and lean controls for SMEs, we tailor our approach to your actual situation — always aiming for controls that get used.
FAQ
Q. Which companies are required to comply with J-SOX?
Listed companies (TSE Prime, Standard, Growth, etc.) and companies preparing for listing are subject to J-SOX. Under the Financial Instruments and Exchange Act, listed companies are required to evaluate and report on internal control over financial reporting (filing of an internal control report). Companies preparing to list are expected to begin developing these controls early, under the guidance of their lead underwriter and audit firm.
Q. Is there value in developing internal controls for a small or mid-sized company?
Yes — regardless of size, internal controls are important for preventing over-reliance on specific individuals, deterring fraud, and ensuring management transparency. For SMEs, the key is designing controls that can be operated by a small team. We provide realistic, tailored support based on your industry and actual circumstances.
Q. How should we design controls around AI and cloud service usage?
Use of AI and cloud services carries risks including data leakage, data loss, and unauthorized access. We design controls covering access management, log monitoring, and vendor management after clearly defining the purpose of use, data in scope, and approval rules. Because what works depends on the specifications of the service and how it is actually used, we recommend starting by establishing the current usage.
Q. Can I engage you only to evaluate and improve existing internal controls, without a full build-out?
Yes — we accept requests limited to evaluating the effectiveness of existing controls and proposing improvements. We address audit firm findings, resolve controls that have become superficial or outdated, and revise documentation.
Q. We are preparing for an IPO — when should we start developing internal controls?
It is generally advisable to begin two to three fiscal years before the listing application (the two years immediately preceding filing). The timing of internal control reviews by lead underwriters and audit firms is also getting earlier, and a delayed start can affect your application schedule. We recommend consulting us as soon as possible.
Get in Touch
We will listen to your concerns and propose the most suitable service. Initial contact creates no contractual obligation.
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