On October 31, 2013, ACGA published an original paper outlining the history and function of the Kansayaku Board system in Japan and comparing it to the standard model Audit Committee system found in most other developed markets. While we recognise that the Kansayaku system has certain strengths, our conclusion is that the Audit Committee system offers a significantly stronger mechanism for supervision of internal controls over financial reporting and related risk management.

Our paper was co-authored by Nicholas Benes, Representative Director, The Board Director Training Institute (BDTI) of Japan. Mr. Benes also reviewed the translation of the paper. ACGA would like to express its sincere thanks to him for his contribution.