Exploring the Role and Impact of Audit Committees in Japanese Corporate Governance

Introduction

This paper aims to explore the role and impact of audit committees within the framework of Japanese corporate governance. The concept of corporate governance has gained increasing attention in Japan, especially in the wake of several high-profile corporate scandals and the subsequent reforms aimed at enhancing transparency and accountability. Audit committees, as essential components of corporate governance, play a crucial role in overseeing financial reporting processes, ensuring compliance with laws and regulations, and safeguarding the integrity of financial statements. This report will examine the structure, functions, and effectiveness of audit committees in Japan, along with their contribution to corporate governance practices and overall business performance.

Main Body

Audit committees in Japan are typically composed of independent directors who are tasked with overseeing the financial reporting process, monitoring the effectiveness of internal controls, and ensuring compliance with applicable laws and regulations. The establishment of audit commi