文档介绍：外文文献翻译译文
一、外文原文
原文:
Internal control
Introduction
The system of internal control over financial reporting in Japan under the Financial Instruments and Exchange Act (FIEA) was implemented as of the fiscal year starting on April 1 this system, executive officers of panies are obligated to evaluate pany's internal control over financial reporting and to file the results of such evaluation in the form of an internal audit report with the Financial Services Agency (FSA). In this report, executive officers should state material weakness if they judge any material weakness exists in pany's internal control over financial reporting. The report should also be audited by outside accounting auditors before being filed with the FSA. Since most panies have a fiscal year that ends in March, June 2009 will be the first time panies file such a report.
When the internal control system was introduced, it made reference to the Sarbanes-Oxley Act of the US. Under the Japanese system, clear standards were set regarding the set-up of internal controls over financial reporting in an effort to prevent the creation of excessive documentation and to control costs, two issues which had occurred in the US. However, even with such standards, some uncertainty exists. In particular, uncertainty arises regarding the connection between this system under the FIEA and the rules of panies Act.
Failure to submit the internal audit report or submission of false statements can lead to liabilities and criminal penalties under the Financial Instruments and Exchange Act (FIEA). However, if there is a material weakness in pany's internal controls over financial reporting and executive officers disclose such material weakness in the internal audit report, no sanctions will be imposed under the
Financial Instruments and Exchange Act, nor will it directly lead to the director's liabilities under panies Act. Rather, disclosure of such material weakness is thought to be desirable, because by