Bank confirmations still delay more audits in our practice than any other external procedure. The letters themselves are simple; the wait for a reply from a busy regional branch is not.
Build the account list early
Two weeks before fieldwork, list every yen and foreign-currency account, every outstanding loan, and every guarantee or letter of credit. Include dormant accounts. Auditors will discover them on the bank’s reply anyway, and surprise accounts force follow-up letters.
Authorisation that banks accept
Japanese banks typically require a company seal and a signatory who appears on the account mandate. Prepare the authorisation form while the managing director is in the office—not the week everyone is at a trade fair. We provide a template that matches the confirmation letter we send.
Foreign-currency balances
If you hold USD or CNY accounts, note the year-end spot rate your ledger used. Confirmations often return balances in the original currency; reconciling to yen without a documented rate creates avoidable queries.
Contingencies on the reply
Guarantees, discounted notes, and unused overdraft lines appear on many confirmation replies. Have the finance manager ready to explain each item against the notes to the financial statements so we are not reconstructing history on the last day of fieldwork.