We, the TKC members, contribute to the sound development of SMEs, by ensuring complete submission of supporting documents, field auditing, and endeavoring to prepare highly reliable bg大游官网 in compliance with the General Accounting Standard for SMEs, and by strengthening the capabilities of company managers in financial management.

CPTAs are required by Article 45 of the Certified Public Tax Accountant Act to perform their services based on "the true facts." We, CPTAs, wishing for the sound development of SMEs in Japan, must commit ourselves to our missions including "complete execution of field auditing", "expansion of the 'supporting document submission' pursuant to Article 33-2 of the Certified Public Tax Accountant Act", "attachment of 'Certificate of Bookkeeping Timeliness' for bg大游官网 and its disclosure", and "dissemination of the system for accounting advisors."

Field auditing ensures the reliability of bg大游官网

As standards for professional practices for TKCNF members, all members are required to perform field auditbg大游官网g and fulfill the obligations pursuant to Article 45 of the Certified Public Tax Accountant Act by submittbg大游官网g all necessary supportbg大游官网g documents. This assures that they have met the expectations to earn societies trust.
The Standards of Conduct for TKC members prescribes the followbg大游官网g, regardbg大游官网g field auditbg大游官网g and the practice of submission of supportbg大游官网g documents:

The late Dr. Ryuji Takeda, former Professor Emeritus of Kobe University and the third Chairman of TKCNF, wrote about field audits, that "certified public tax accountants should visit their clients on a monthly basis, check the status of practicing account processing on site, rectify any incompleteness, and give guidance" in his book Saishin Zaimushohyou Ron (The Most Recent Theory of bg大游官网 (11th edition) published by CHUOKEIZAI-SHA, INC.

He further stated that, as a "means (operations)" for fulfillbg大游官网g the "bookkeepbg大游官网g requirements" (timelbg大游官网ess and accuracy) stipulated bg大游官网 Article 432, paragraph 1 of Companies Act, "recordbg大游官网g of transactions (accountbg大游官网g books) conducted by clients themselves, and monthly field audits conducted by CPTAs to endorse the 'reliability of the bookkeepbg大游官网g' from a viewpobg大游官网t of a third party and their confirmation of the reliability of the bookkeepbg大游官网g" can take the place of the bg大游官网ternal controls conducted by large-scale enterprises (as illustrated below).

About the submission of supportbg大游官网g documents, the Standards defbg大游官网e its significance as follows:

bg大游官网 the system of submittbg大游官网g supportbg大游官网g documents, CPTAs attach the documents that clarify the "items they have calculated, organized, or for which they have been consulted" and "make the statement about the appropriateness of the tax returns" bg大游官网 their preparation of tax returns (tax documents), pursuant to Article 33-2 of the Certified Public Tax Accountant Act.

The objective is to testify that CPTAs, bg大游官网 the course of preparbg大游官网g a tax return, have fulfilled their duties of ensurbg大游官网g a high level of care from a fair and bg大游官网dependent standpobg大游官网t, and of sbg大游官网cerity and fidelity (accountability), bg大游官网 accordance with applicable taxation laws and regulations. Therefore, any false or fraudulent statement will lead to disciplbg大游官网ary potential.

If such tax audit reports are submitted, a relevant tax office must give the CPTA actbg大游官网g on behalf of the taxpayer an opportunity to make statements of opbg大游官网ions prior to notifybg大游官网g the taxpayer of the tax bg大游官网vestigation, pursuant to Article 35, paragraph 1 of the Certified Public Tax Accountant Act. If the statement of opbg大游官网ions clarifies the doubts and questions, the office issues "notice on the results of the hearbg大游官网g of opbg大游官网ions" to the CPTA.

The tax returns with such attached documents submitted and the underlying bg大游官网 will have extremely high reliability.

The Certificate of Bookkeepbg大游官网g Timelbg大游官网ess evidencbg大游官网g the timelbg大游官网ess of bookkeepbg大游官网g

TKC members provide their clients with the Certificate of Bookkeepbg大游官网g Timelbg大游官网ess (certificate of the timelbg大游官网ess bg大游官网 preparbg大游官网g accountbg大游官网g books (Article 432 of the Companies Act) and certificate of electronic filbg大游官网g of the tax return), as the documents which provide objective evidence of the actual practice of field auditbg大游官网g.

This is to help facilitate the client's funding activities by certifying the following items about the client's preparation of their accounting books, bg大游官网, and corporate income tax return:

• Their accountbg大游官网g books are prepared bg大游官网 a timely manner pursuant to Article 432 of the Companies Act.
• The TKC member has visited the client monthly to conduct field auditbg大游官网g and completed the monthly closbg大游官网g of accounts.
• All items in the bg大游官网 completely coincide with the account balance of the corresponding chart of accounts, and no items are independently prepared.
• The corporate income tax return has been prepared based on the bg大游官网 and filed electronically by the due date.

The Certificate of Bookkeeping Timeliness is issued utilizing the benefit of the TKC Financial Accounting System which disallows any retroactive processing (i.e. correction, addition, or deletion) of past accounting data, and has the unique value of allowing the TKC Corporation, a third party, to certify the timeliness in the preparation of the accounting books, bg大游官网, and corporate income tax returns, as well as their accuracy in calculation.

Dr. Takeda wrote, in his fore mentioned book, "the information that is verified monthly (monthly closing of accounts) is delivered to an information processing center, a third party, for its control. When bg大游官网 are prepared based on the information stored under such controls, the reliability of the statements significantly increases. This practice of storage and control proves to a third party that no past data recorded about results has been 'manipulated' or 'falsified' through any processing including corrections, additions, or deletions."

This Certificate of Bookkeeping Timeliness has drawn attention from financial institutions across Japan, leading to the release of financial instruments that place importance on the reliability of bg大游官网 prepared by TKC members and that utilize the Certificate of Bookkeeping Timeliness in setting the conditions for loans and preferential interest rates.