The Certified Public Accountant Law (Law No.103 of 1948) shall be partially amended as follows:
In the Contents, "Certified Public Accountant Review Committee" and "Regulation of Business" shall be amended as "Certified Public Accountant Administration Commission" and "Miscellaneous Provisions," respectively.
In Article 7 item (3), next to "Civil Service Primary Examination," "or Judicial Service Primary Examination" shall be added;and, in item (4) of the same Article, "Ministry of Finance Ordinance" shall be amended as "Regulations of Certified Public Accountant Administration Commission."
In Article 9 item (4), next to "Main Examination of the Civil Service Examination," "or Judicial Secondary Examination" shall be added.
In Article 11, next to "as a Junior Public Accountant," "or have engaged in the practical works related to the inspection, certification, examination or preparation of financial documents as prescribed by the Regulations of Certified Public Accountant Administration Commission" shall be added.
In Article 12 paragraph 1, next to "the office of a Certified Public Accountant," "the association which Certified Public Accountants may organize" shall be added, and in the same paragraph, "Minister of Finance" as "Certified Public Accountant Administration Commission" ;and in paragraph 2 of the same Article, "Ministry of Finance Ordinance" shall be amended as "Regulations of Certified Public Accountant Administration Commission."
In Article 13 paragraph 1, "\200" and "\500" shall be amended as "\500" and "\1,000," respectively.
In Article 15 paragraph 1, "Ministry of Finance" shall be amended as "Certified Public Accountant Administration Commission."
In Article 16, "Ministry of Finance Ordinance" shall be amended as "Regulations of Certified Public Accountant Administration Commission" ;and in Chapter 2, next to the same Article, the following one Article shall be added:
(Exception concerning the Person Qualified in a Foreign Country)
Article 16-(2). A person who has a qualification in a foreign country equivalent to the qualification for a Certified Public Accountant and has a suitable knowledge of Japanese laws and orders regarding accounting, may carry out the business prescribed in Article 2, after having received an approval for the qualification approved by the Certified Public Accountant Administration Commission, and having been registered on Foreign Certified Public Accountants'list to be kept by the Certified Public Accountant Administration Commission. However, this shall not apply to a person coming under any of the items of Article 4.
2 The Certified Public Accountant Administration Commission may, in the case where it gives the approval for the qualification under the preceding paragraph, hold an examination or make an investigation.
3 In the case where a person, who was registered in accordance with paragraph 1 (hereinafter referred to as "Foreign Certified Public Accountant" ) comes under any of the following items, the Certified Public Accountant Administration Commission shall revoke the registration under the same paragraph:
(1) When he or she comes under any of the items of Article 21;
(2) When he or she loses a qualification in a foreign country equivalent to the qualification for a Certified Public Accountant.
4 The provisions of Article 17 paragraphs 2 and 3, Articles 19 and 20, Articles 22 to 34 inclusive, and Article 49 shall apply mutatis mutandis to a Foreign Certified Public Accountant.
In Article 17 paragraph 1 "Ministry of Finance Ordinance" shall be amended as "Regulations of Certified Public Accountant Administration Commission."
In Article 18, "Ministry of Finance" shall be amended as "Certified Public Accountant Administration Commission."
In Article 19 paragraphs 1 and 3 and Article 21, "Minister of Finance" shall be amended as "Certified Public Accountant Administration Commission."
In Article 22, "Ministry of Finance Ordinance" shall be amended as "Regulations of Certified Public Accountant Administration Commission."
Article 23 shall be amended as follows:
In Article 30, "the Minister of Finance may, upon the decision of the Certified Public Accountant Review Committee" shall be amended as "the Certified Public Accountant Administration Commission may," ;and in paragraph 1 of the same Article, "substantial" shall be deleted.
In Article 31, "Ministry of Finance Ordinance based on this Law" shall be amended as "Regulations of Certified Public Accountant Administration Commission," "the Minister of Finance" shall be amended as "the Certified Public Accountant Administration Commission" and "upon the decision of the Certified Public Accountant Review Committee" shall be deleted.
In Article 32 paragraphs 1 to 3 inclusive, "Minister of Finance" shall be amended as "Certified Public Accountant Administration Commission" ;in paragraph 4 of the same Article, "When disciplinary cases mentioned in the foregoing two Articles are to be reviewed, the Certified Public Accountant Review Committee shall" shall be amended as "When the disciplinary punishments under the foregoing two Articles are to be executed, the Certified Public Accountant Administration Commission shall" ;and in paragraph 5 of the same Article, "by the Certified Public Accountant Review Committee" and "and report is made to the Minister of Finance to that effect" shall be deleted.
In Article 33, "Minister of Finance" shall be amended as "Certified Public Accountant Administration Commission" ;and in paragraph 2 of the same Article, "competent employee concerned" shall be amended as "personnel of the executive office."
In Article 34, "Minister of Finance" shall be amended as "Certified Public Accountant Administration Commission."
Chapter 6 shall be amended as follows:
Chapter 6. Certified Public Accountant Administration Commission
(Establishment)
Article 35. For the purpose of administering matters concerning Certified Public Aceountant, Junior Public Accountant, and Certified Public Accountant, Examination and supervising Certified Public Accountant and Junior Public Accountant, a Certified Public Accountant Administration Commission shall be established as an external organ of the Ministry of Finance in accordance with the provision of Article 3 paragraph 2 of the National Government Organization Law (Law No.120 of 1948).
(Responsibilities)
Article 36. The Certified Public Accountant Administration Commission shall take charge of the following affairs:
(1) Matters concerning the administration of Certified Public Accountant Examination;
(2) Matters concerning the registration of Certified Public Accountant and Junior Public Accountant;
(3) Matters concerning the supervision and the disciplinary punishment of Certified Public Accountant and Junior Public Accountant;
(4) Matters concerning the superintendence of Foreign Certified Public Accountant;
(5) Investigation and planning of the system concerning the inspection or certification of the financial documents, in connection with the business of Certified Public Accountant.
(Powers)
Article 37. The Certified Public Accountant Administration Commission has the following powers in order to carry out the responsibilities under the provisions of this Law. However, in exercising of its powers the Commission shall comply with the provisions of laws (including order based thereon):
(1) To determine the kind of the practical works which are the requisite of the Third Examination and to authorize and designate institutes giving supplement course of study for practical works and to determine necessary matters for the said course;
(2) To determine the details of the Certified Public Accountant Examination;
(3) To take charge of Certified Public Accountants'Roster and Junior Public Accountants'Roster and to register Certified Public Accountant and Junior Public Accountant;
(4) To determine the details of the registration of Certified Public Accountant and Junior Public Accountant;
(5) To take disciplinary actions against Certified Public Accountant and Junior Public Accountant;
(6) To receive informations from the general public and to carry out necessary investigation, relative to any case of disciplinary punishment of Certified Public Accountant and Junior Public Accountant;
(7) To ask for report from and to make recommendation to Certified Public Accountant and Junior Public Accountant, if deemed necessary, with respect to the business being executed by them;
(8) To ask for report from and to make recommendation to the associations which Certified Public Accountants organize, or their federations, if deemed necessary, with respect to the business which they carry out;
(9) With respect to Foreign Certified Public Accountants, to approve their qualification, make their registration, take disciplinary actions, ask for report from and make recommendation to them, concerning the business being executed by them;
(10) Concerning the business of Certified Public Accountant, to make necessary adjustment to the systems related to the inspection or certification of the financial documents;
(11) To carry out publicity on its responsibilities;
(12) Other than those prescribed in the foregoing items, to execute the powers vested with the Certified Public Accountants Administration Commission under the laws (including orders based thereon).
(Organization)
Article 38. The Certified Public Accountant Administration Commission shall consist of five (5) commissioners.
(Commissioners)
Article 39. Commissioners shall be appointed by the Minister of Finance from among the persons who are thirty-five (35) or more years of age and are of understanding and knowledge regarding the matters relative to Certified Public Accountants and who are Certified Public Accountants or have qualified as Certified Public Accountant.
2 The Minister of Finance shall not appoint the Commissioner any person who comes under any of the following items:
(1) A person who was sentenced to a penalty, by violating the provisions of this Law;
(2) A person who was dealt with the action of the revocation of registration of the Certified Public Accountant;
(3) A person who was dealt with the action of suspension, for not more than one (1) year, of business of Certified Public Accountant or Junior Public Accountant.
Article 40. The term of office of the Commissioner shall be three (3) years;provided, however, that the term of office of a Commissioner who is appointed to fill a vacancy shall be the remainder of his or her predecessor.
2 The Commissioner may be reappointed.
3 The Commissioner shall be of part-time service.
(Dismissal of Commissioner)
Article 41. The Minister of Finance shall dismiss the Commissioner, even before his or her term of office expires, in case the Commissioner comes under any of the following items:
(1) Where he or she lost the qualifications of a Certified Public Accountant;
(2) Where he or she comes under any of the items of Article 39 paragraph 2;
(3) Where he or she is proved by the Certified Public Accountant Administration Commission as being unable to execute his or her office due to mental or physical defect;
(4) Where he or she is proved by the Certified Public Accountant Administration Commission as having acted in contravention of his or her official duties.
(Chairman)
Article 42. The Chairman shall be appointed by the Minister of Finance upon the mutual election among the Members.
2 The Chairman shall preside over the affairs of the Certified Public Accountant Administration Commission and represent the Certified Public Accountant Administration Commission.
3 The Public Accountant Administration Commission shall nominate in advance the person to act for the Chairman in cases where the Chairman is prevented from discharging his duties, from among the Commissioners.
(Meeting)
Article 43. The Certified Public Accountant Administration Commission shall not hold the meeting and make any decision therein, unless the chairman and two or more Commissioners are present.
2 Decision of the Certified Public Accountant Administration Commission shall be made by majority of the Commissioners.
3 No Commissioner shall participate in vote related to the matters in which he or she is personally interested.
4 In order that the Certified Public Accountant Administration Commission makes decision as to matters prescribed in Article 41 item (3) or (4), unanimous vote except of the person concerned shall be required, regardless of the provisions in paragraphs 1 and 2.
(Regulations of Certified Public Accountant Administration Commission)
Article 44. The Certified Public Accountant Administration Commission may, in order to enforce the laws or the cabinet orders or pursuant to the specific delegation by the laws or the cabinet orders with regard to the businesses under its jurisdiction, establish the Regulations of the Certified Public Accountant Administration Commission.
2 The Regulations of the Certified Public Accountant Administration Commission shall be published in Official Gazette.
(Executive Office)
Article 45. The Certified Public Accountant Administration Commission shall have its executive office.
(Employee)
Article 46. Appointment, dismissal, promotion, discipline and other matters concerning personnel administration of the employees attached to the Certified Public Accountant Administration Commission shall be in accordance with the provisions of National Public Service Law.
2 Matters concerning the fixed number of employees attached to the Certified Public Accountant Administration Commission shall be in accordance with the provisions of the Law for the Fixed Number of Personnel in the Administrative Organizations (Law No.126 of 1949).
"Chapter 7. Regulation of Business" shall be amended as "Chapter 7 Miscellaneous Provisions."
Article 47 shall be deleted.
In Article 48, "by a Certified Public Accountant" shall be added after "whole or part of his or her statement as has been audited or certified" ;the proviso to the same Article shall be deleted;and the same Article shall be made Article 47.
In Article 49 paragraph 1, "Public Auditor, Public Accountant (Keirishi)" shall be deleted;in paragraph 2 of the same Article, "Junior Public Auditor, Junior Public Accountant (Keirishiho)" shall be deleted;in paragraph 3 of the same Article, "or the use of proper title which shows the qualification as Foreign Certified Public Accountant" shall be added next to "the use of such title as stipulated by a law" and the same Article shall be made Article 48;and after the same Article, the following one Article shall be added:
(Document Prepared by the Certified Public Accountant on His or Her Business)
Article 49. Title to materials and other documents prepared by the Certified Public Accountant in auditing and certifying at the request of other persons shall be acquired by the Certified Public Accountant, except the case where special agreement has been made.
In Article 50, "Any person who is not qualified to become a Certified Public Accountant, and who has violated the provisions of Article 47, or" shall be deleted, and "Article 48" shall be amended as "Article 47."
In Article 52, next to "Article 27," "(including the case where it applies mutatis mutandis in Article 16-(2) paragraph 4)" shall be added.
In Article 53, "Article 49" shall be amended as Article 48."
In Article 54, "or a Foreign Certified Public Accountant" shall be added next to "a Certified Public Accountant," and "or Article 16-(2) paragrarh 1" shall be added next to "Article 17."
In Article 55, next to "or paragraph 2," "(including the case where it applies mutatis mutandis in Article 16-(2) paragraph 4" shall be added.
In Article 56, proviso shall be deleted.
In Article 57 paragraphs 1 to 3 inclusive, "the Minister of Finance" shall be amended as "the Certified Public Accountant Administration Commission" ;in paragraph 5 of the same Article, "\500" shall be amended as "\1,000" ;and the paragraphs 7 and 8 of the same Article shall be deleted.
In Article 57-(2) paragraph 2 and in Article 59, "the Ministry of Finance Ordidance" shall be amended as "the Regulations of the Certified Public Accountant Administration Commission."
Article 63 shall be amended as follows:
Article 63. Any person who was a Public Accountant at the time when the Public Accountant Law was abrogated, may carry on, under the name of Keirishi, the business as prescribed in Article 1 of the old Public Accountant Law, in case he is registered in the Public Accountants'list kept at the Certified Public Accountant Administration Commission by March 31, 1951 in accordance with the provisions of the Regulation of Certified Public Accountant Administration Commission.
2 Any person who was a Public Accountant at the time when the Public Accountant Law was abrogated and who is engaged, on March 31, 1951, in the business as prescribed by the Regulations of Certified Public Accountant Administration Commission may carry on, under the name of Keirishi, the business as prescribed in Article 1 of the old Public Accountant Law, notwithstanding the provision of the preceding paragraph, in case he is registered within one month after he has left the business, in accordance with the provisions with necessary modifications of the same paragraph.
3 The provisions of Article 17 paragraphs 2 and 3, Articles 19 to 34 inclusive and Article 49 shall apply mutatis mutandis to the persons who carry on the business prescribed in Article 1 of old Public Accountant (Keirishi) Law in accordance with the preceding two paragraphs (hereinafter to be referred to as "Public Accountant'Keirishi'" ). In this case, "Article 4" as mentioned in Article 21 item (3) shall read "Article 4 of the old Registered Public Accountant (Keirishi) Law."
4 Any person who violates the provision of Article 27 which applies mutatis mutandis in the preceding paragraph shall be subjected to imprisonment not exceeding one (1) year or a fine not exceeding 5,000 yen.
5 The prosecution for the offence mentioned in the preceding paragraph shall take place only on the complaint.
6 In case any pereon who is a Public Accountant (Keirishi) at the time of abrogation of the Public Accountant Law (Keirishi-ho) carries on the business prescribed in Article 1 of the old Public Accountant Law under the name of the Public Accountant (Keirishi) without being registered pursuant to the provision of paragraph 1 or 2, he shall be punished with an administrative fine not exceeding 10,000 yen:
7 Anyone who comes under any of the following items shall be punished with an administrative fine not exceeding 1,000 yen:
(1) Those who did not attend, did not make statement, made false statement, made no report or made fales report in violation of the action against the interested persons or witnesses under the provision of Article 33 paragraph 1 item (1) or paragraph 2 which applies mutatis mutandis in paragraph 3;
(2) Those who did not attend, stated no expert opinion or made false opinion in violation of the action against the expert witness under the provisions of Article 33 paragraph 1 item (2) or paragraph 2 which applies mutatis mutandis in paragraph 3;
(3) Those who did not present articles in violation of the action against the owner of such articles under the provision of Article 33 paragraph 1 item (3) or paragraph 2 which applies mutatis mutandis in paragraph 3.
In Article 64, "persons who engage in the business as prescribed by the provisions of Article 1 of the Public Accountant Law pursuant to the provisions of the foregoing Article," shall be amend as "Public Accountant," and "Article 5 paragraph 2, Article 7, Article 8, Article 9 paragraph 1, Article 10 paragraph 1 and Article 11" shall be deleted;and the latter part of the same Article shall be amended as follows:
In this case, "the Competent Minister" as used in the same Article, shall read "the Certified Public Accountant Administration Commission."
Next to Article 64, the following two Articles shall be added:
Article 64-(2). The Certified Public Accountant Administration Commission shall take charge of the following affairs besides those prescribed in Article 36:
(1) Matters concerning the administration of the special examination for Certified Public Accountant;
(2) Matters concerning registration and the supervision of the Public Accountant.
Article 64-(3). The Certified Public Accountant Administration Commission shall have the powers listed below besides those prescribed in Article 37:
(1) To decide the time, places, subjects, method and other details relative to the Special Examination for Certified Public Accountant;
(2) To keep the Public Accountants'(Keirishi) List in custody and to register Public Accountants;
(3) To determine the details of registration of Public Accountant;
(4) To take disciplinary actions against Public Accountant;
(5) To receive information from the general public and to make necessary investigations on cases of disciplinary actions involving Public Accountant;
(6) To ask for report from and to make recommendation to the Public Accountant, if necessary, with respect to the business being conducted by him;
(7) To ask report from and to make recommendation to the associations composed of the Public Accountant or to their federation, if necessary, with respect to the business conducted by them.