Certified Japanese Sarbanes-Oxley Expert (CJSOXE), distance learning and online certification program

Overview

J-SOX or JSOX is the unofficial term that refers primarily to Japan’s Financial Instruments and Exchange Law, and the guidelines that followed. Japanese and foreign companies listed in Japan are required to prepare and submit internal control reports on a consolidated basis.

The reach of J-SOX extends to subsidiaries outside Japan (in the USA and Europe for example), because the provisions apply to the company as a whole. The subsidiaries outside Japan are involved in the testing and documentation of internal processes and controls.

In May 2019, there were 89 new JSOX jobs in the States, 21 new JSOX jobs in Japan and 10 new JSOX jobs in India. (LinkedIn, May 2019). It is important to know that very few professionals understand the JSOX requirements.

 

 

The following are parts of job descriptions (www.indeed.com, May 2019).

Objectives

The program has been designed to provide with the knowledge and skills needed to understand and support compliance with the Japanese Financial Instruments and Exchange Law and the guidelines that followed, and to become a Certified Japanese Sarbanes-Oxley Expert (CJSOXE).

Target Audience

This course is highly recommended for managers, employees and consultants working for firms listed in Japan, especially those involved in the design and implementation of strategies, policies, procedures, risk assessments, control activities, testing, documentation, monitoring and reporting.

This course is also recommended for risk and compliance managers and employees working for international conglomerates.

Course Synopsis.

Introduction.
The CJSOXE exam.

Part 1: What is J-SOX?

The Financial Instruments and Exchange Act (FIEA).
The FIEA’s objectives.
Kanebo.
Livedoor.
Sarbanes-Oxley (SOX) and J-SOX.

FSA, SESC, CPAAOB.
The Financial Services Agency (FSA).
The Securities and Exchange Surveillance Commission (SESC).
The Certified Public Accountants and Auditing Oversight Board (CPAAOB).

Part 2: SOX vs. J-SOX.

FSA, Eleven Misunderstandings about the Internal Control Report System.
1. Is the Internal Control Report System identical to the one originally introduced by the Sarbanes-Oxley (SOX) Act in the United States?
2. Is additional documentation always necessary?
3. Do all business operations require internal controls?
4. Do even small and medium-sized companies need internal controls as required for large companies?
5. Is a company subject to punishments, if any deficiencies are found?
6. Does a management always need to comply with suggestions from its auditors or consultants?
7. Will auditing costs be doubled?
8. Is an unlisted company also required to design internal controls, when entering into transactions with listed companies?
9. Is the absence of a project team a problem?
10. Does a company need to finish the whole preparation by the effective date?
11. Does a company need to postpone modifications to an IT system scheduled around the end of a fiscal year?

Part 3: FSA, Corporate Governance Reforms.

General Principles of Japan’s Corporate Governance Code.
a. Securing the Rights and Equal Treatment of Shareholders.
b. Appropriate Cooperation with Stakeholders Other Than Shareholders.
c. Ensuring Appropriate Information Disclosure and Transparency.
d. Responsibilities of the Board.
e. Dialogue with Shareholders.

Japan’s Stewardship Code.
The principles of Japan’s Stewardship Code.

Part 4: The Financial Instruments and Exchange Act (FIEA) - Important sections.

Article 24-4-2, Submission of Confirmation Letter for Annual Securities Report. (Note: It is similar to SOX Section 302).
Article 24-4-4, System for Ensuring Appropriateness of Statements on Finance and Accounting and Other Information. (Note: It is similar to SOX Section 404).

FAQ on Financial Instruments and Exchange Act, July 2015, Financial Services Agency, Japan - Important questions.

Why was the Internal Control Report system introduced?
What are the details of the Internal Control Report system, and from when is it applied?
Are foreign companies also obligated to submit an Internal Control Report?
What are the standards for assessment and audit of the internal control over financial reporting?
What was the background behind the establishment of the standards and practice standards for assessment and audit concerning internal control over financial reporting?
What points should be kept in mind when operating the standards and practice standards for assessment and audit concerning internal control over financial reporting?
What is the scope of "internal control over financial reporting"?
How does the Japanese Internal Control Report system differ from the Internal Control Report system pertaining to financial reporting that was introduced in the United States by the Sarbanes–Oxley Act of 2002?
Are there penal provisions against those who violate provisions of Internal Control Reports?
Why was the Confirmation Letter system introduced concerning the contents of Annual Securities Reports, etc.?
What kind of system is the Confirmation Letter system?
Which companies are obligated to submit Confirmation Letters?
Are foreign companies also obligated to submit Confirmation Letters?
What kinds of disclosure documents require submission of a Confirmation Letter?
Which members of the management need to include their titles and names in the Confirmation Letter?

I. Basic Framework of Internal Control.
II. Assessment and Report on Internal Control Over Financial Reporting.
III. Audit on Internal Control Over Financial Reporting.

Basic framework of internal control.
Four objectives:
(i) effectiveness and efficiency of business operations,
(ii) reliability of financial reporting,
(iii) compliance with applicable laws and regulations relevant to business activities, and
(iv) safeguard of assets.

Six basic components:
(i) control environment,
(ii) risk assessment and response,
(iii) control activities,
(iv) information and communication,
(v) monitoring, and
(vi) response to IT.

FSA Statement, following the enactment of the Bill for Amendment of the Financial Instruments and Exchange Act, etc.
Case Study.

Part 5: Council Opinions.

On the Setting of the Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions).

Part 6: Practical Guidance.

Part 6: Practical Guidance for Audits of Internal Control over Financial Reporting (October 2007), from the Japanese Institute of Certified Public Accountants.

The intention of internal control audits.
(1) The objectives of internal control audits.
(2) The characteristics of the audit approach.
(3) The subject of internal control audits.

The relationship between the Financial Statement Audit and the Internal Control Audit.
(1) The combination of Financial Statement Audits with Internal Control Audits.
(2) Issues on using results of internal control audits in financial statement audits.
(3) Understanding management’s assessment of internal controls and audit planning.
(4) Procedures for evaluating assessment of the design/operation of internal controls.

The relationship between the Financial Statement Audit and the Internal Control Audit.
(1) The combination of Financial Statement Audits with Internal Control Audits.
(2) Issues on using results of internal control audits in financial statement audits.
(3) Understanding management’s assessment of internal controls and audit planning.
(4) Procedures for evaluating assessment of the design/operation of internal controls.
(5) Evaluation of the assessment of company-level controls and the period-end financial reporting process.
(6) The relationship between audit procedures for internal control audits and those for internal controls in financial statement audits.
(7) Impact of results of internal control audits on financial statement audits.
(8) The impact of the results of financial statement audits on internal control audits.
(9) Company Law audits and internal control audits.

Evaluation of the assessment of IT general control.
(1) Positioning of IT general control.
(2) Evaluation of the assessment of the IT general control.
(3) Evaluation of deficiencies in IT general control.

Material weakness in internal controls.
(1) Deficiencies in internal controls.
(2) Guidelines for determining material weakness.
(3) Control deficiencies for which examination is necessary to determine whether they constitute material weakness.
(4) In the case that there are multiple control deficiencies.
(5) Response in case management has identified a material weakness.
(6) Reporting and remediation of material weakness.
(7) Influences on the financial statement audit.

Case Study.
Closing.


Become a Certified Japanese Sarbanes-Oxley Expert (CJSOXE)

For secure payment we work with PayPal, the faster and safer way to make online payments. With PayPal we minimize the cost of administration and compliance with national and international laws, so we can keep the cost of our programs and services so low.

Only PayPal receives your credit card number and your financial information. We receive your full name, your email, and your mail address. According to the PayPal rules, you have the option to ask for a full refund up to 60 days after the payment. If you do not want one of our programs or services for any reason, all you must do is to send us an email and we will refund the payment, no questions asked.

When you click "Buy Now" below, you will be redirected to the PayPal web site. Your payment will be received by our strategic partner and service provider, Cyber Risk GmbH (Rebackerstrasse 7, 8810 Horgen, Switzerland, Handelsregister des Kantons Zürich, Firmennummer: CHE-244.099.341). Cyber Risk GmbH may also send certificates to all members.

We will send the program up to 24 hours after the payment. Please remember to check the spam folder of your email client too, as emails with attachments or heavier than 100KB are often landed in the spam folder.

The all-inclusive cost is $297. There is no additional cost, now or in the future, for this program.

 

What is included in the price:

A. The official presentations (442 slides).

The presentations are effective and appropriate to study online or offline. Busy professionals have full control over their own learning and are able to study at their own speed. They are able to move faster through areas of the course they feel comfortable with, but slower through those that they need a little more time on.

B. The official Certified Sarbanes-Oxley Expert (CSOE) presentations (1,022 slides).

We strongly believe that a good understanding of the US Sarbanes-Oxley Act is very important, in order to understand the Japanese Sarbanes-Oxley Expert (CJSOXE) program. The CSOE presentations are not part of the CJSOXE program and are not needed for the CJSOXE exam.

C. Up to 3 online exam attempts per year.

Candidates must pass only one exam to become CJSOXEs. If they fail, they must study the official presentations and retake the exam. Candidates are entitled to 3 exam attempts every year.

If candidates do not achieve a passing score on the exam the first time, they can retake the exam a second time.

If they do not achieve a passing score the second time, they can retake the exam a third time.

If candidates do not achieve a passing score the third time, they must wait at least one year before retaking the exam. There is no additional cost for any additional exam attempts.

To learn more, you may visit:

https://www.sarbanes-oxley-association.com/Questions_About_The_Certification_And_The_Exams_1.pdf

https://www.sarbanes-oxley-association.com/CJSOXE_Certification_Steps_1.pdf

D. The certificate.

Processing and posting via registered mail with tracking number. Certificates are usually dispatched every 10 weeks.


Frequently Asked Questions

1. I want to know more about the Sarbanes-Oxley Compliance Professionals Association (SOXCPA).

The SOXCPA is the largest association of Sarbanes-Oxley professionals in the world.

The association is wholly owned by Compliance LLC, a company incorporated in Wilmington NC and offices in Washington DC, a provider of risk and compliance training in 36 countries.

Several business units of Compliance LLC are very successful associations that offer standard, premium, and lifetime membership, weekly or monthly updates, training, certification, Authorized Certified Trainer (ACT) programs, advocacy, and other services to their members.

2. Does the association offer training?

The SOXCPA offers distance learning and online certification programs in all countries, and in-house instructor-led training in companies and organizations in many countries.

A. Distance learning and online certification programs.

A1. Certified Sarbanes-Oxley Expert (CSOE), distance learning and online certification program.

To learn more, you may visit: https://www.sarbanes-oxley-association.com/Distance_Learning_and_Certification.htm

A2. Certified Japanese Sarbanes-Oxley Expert (CJSOXE), distance learning and online certification program.

J-SOX is the unofficial term that refers to Japan’s Financial Instruments and Exchange Law that was promulgated by the Japanese National Diet in June 2006, and to other laws, guidelines, and standards.

The Japanese framework is modeled after the U.S. Sarbanes-Oxley Act.

To learn more, you may visit: https://www.sarbanes-oxley-association.com/CJSOXE_Distance_Learning_and_Certification.htm

B. Instructor-led training.

The association develops and maintains two certification programs and many tailor-made training programs for directors, executive managers, risk and compliance managers, internal and external auditors, data owners, process owners, consultants, suppliers, and service providers.

For instructor-led training, you may contact Lyn Spooner.

3. Is there any discount available for the distance learning programs?

Unfortunately, we do not offer any discount for the first program. We want to keep the cost of the programs so low for all members.

You have a $100 discount only after you purchase the CSOE or the CJSOXE program, and it applies to each one of the programs that follow:

a. Certified Risk and Compliance Management Professional (CRCMP).

b. Certified Information Systems Risk and Compliance Professional (CISRCP).

c. Certified Cyber (Governance Risk and Compliance) Professional - CC(GRC)P.

d. Certified Risk and Compliance Management Professional in Insurance and Reinsurance - CRCMP(Re)I.

There are programs offered by the International Association of Risk and Compliance Professionals (IARCP, https://www.risk-compliance-association.com). The SOXCPA and the IARCP are both wholly owned by Compliance LLC.

For example, you can purchase the CSOE program for $147, and then purchase the CRCMP program for $197 (instead of $297), and/or the CISRCP program for $197 (instead of $297), and/or the CC(GRC)P program for $197 (instead of $297), and/or the CRCMP(Re)I program for $197 (instead of $297).

The CRCMP has become one of the most recognized programs in risk management and compliance. There are CRCMPs in 32 countries. Companies and organizations like Accenture, American Express, USAA etc. consider the CRCMP a preferred certificate. You can find more at: https://www.risk-compliance-association.com/CRCMP_Jobs_Careers.pdf

4. Why do you accept payments via PayPal only, for the distance learning programs?

There are important threats to data security in today's IT landscape. On top of that, new data protection regulations around the world put tough requirements on organisations that store “personally identifiable data”, including credit card information.

These two factors could increase the cost of our programs dramatically. We accept payments via PayPal for the distance learning programs, to minimize the cost of compliance and administration. PayPal keeps and protects your financial information, not us, so we can keep the cost of the program so low.

With PayPal you have some additional benefits. You can keep the program for 59 days to evaluate it, and if you do not like it, you can simply send us an email and ask for a full refund, no questions asked. We will refund your payment in less than 24 hours. PayPal offers this escrow service (an escrow generally refers to money held by a third-party, PayPal, on behalf of the transacting parties). In this way, there is absolutely no risk for you.

If you do not have a PayPal account and you do not want to create one, somebody else with a PayPal account can also pay for you. After the payment, just let us know, and we will update the record.

5. Are your training and certification programs vendor neutral?

Yes. We do not promote any products or services, and we are 100% independent.

6. I want to learn more about the exam.

You will be given 90 minutes to complete a 35-question multiple-choice exam. You must score 70% or higher. We do not send sample questions. If you study the presentations, you can score 100%.

7. How comprehensive are the presentations? Are they just bullet points?

The presentations are not bullet points. They are effective and appropriate to study online or offline

8. Do I need to buy books to pass the exam?

No. If you study the presentations, you can pass the exam. All the exam questions are clearly answered in the presentations. If you fail the first time, you must study more. Print the presentations and use Post-it to attach notes, like "302", "404" etc., to know where to find the answer of a question.

9. Is it an open book exam? Why?

Yes, it is an open book exam. Risk and compliance management is something you must understand and learn, not memorize. You must acquire knowledge and skills, not commit something to memory.

10. Do I have to sit for the exam soon after receiving the presentations?

No. You can sit for the exam from your office or home, any time in the future. Your account never expires.

11. Do I have to spend more money in the future to remain certified?

No. Your certificate never expires. It will be valid, without the need to spend money or to sit for another exam in the future.

12. Ok, the certificate never expires, but things change.

Recertification would be a great recurring revenue stream for the association, but it would also be a recurring expense for our members. We resisted the temptation to "introduce multiple recurring revenue streams to keep business flowing", as we were consulted. No recertification is needed for our programs.

Things change, and this is the reason you need to become (at no cost) a member of the association. Every month you can visit the "Reading Room" of the association and read our newsletter with updates, alerts and opportunities, to stay current.

13. How many hours do I need to study to pass the exam?

You must study the presentations at least twice, to ensure you have learned the details. The average time needed is about 26 hours for the CSOE program and 32 hours for the CJSOXE program, but there are important differences

14. Why should I get certified?

Firms and organizations hire and promote "fit and proper" professionals who can provide evidence that they are qualified.

Employers need assurance that employees have the knowledge and skills needed to mitigate risks and accept responsibility. Supervisors and auditors ask for independent evidence that the process owners are qualified, and that the controls can operate as designed, because the persons responsible for these controls have the necessary knowledge and experience.

The marketplace is clearly demanding qualified professionals in risk and compliance management. Certified professionals enjoy industry recognition and have more and better job opportunities.

It is important to get certified and to belong to professional associations. You prove that you are somebody who cares, learns, and belongs to a global community of professionals.

15. Why should I choose your certification programs?

It is always good to search for other programs too.

We strongly believe that we offer the best value for money compared to all other Sarbanes-Oxley training and certification programs.

a. The Sarbanes-Oxley Compliance Professionals Association (SOXCPA) is the largest association of Sarbanes-Oxley professionals in the world.

b. The all-inclusive cost of our programs is very low. There is no additional cost for each program, now or in the future, for any reason.

c. There are 3 exam attempts per year that are included in the cost of each program, so you do not have to spend money again if you fail.

d. No recertification is required. Your certificates never expire.

e. You become a member of the association, you get certified, and you receive monthly updates, news and alerts.

If you search the web, you will not find the value for money offered by the SOXCPA.

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