Methodology
How a Kisetsu review is built
A custom page for the engagement model: planning before sampling, evidence before opinion, and a findings memo directors can act on.
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01
Acceptance & independence
We confirm entity ownership, prior bookkeeping relationships, and whether we can maintain independence for a financial auditing engagement. Conflicts are declined in writing.
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02
Planning letter
Material accounts, known judgment areas, inventory locations, and a dated document list are issued before fieldwork. Bookkeepers know exactly which schedules and confirmations we expect.
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03
Walkthroughs & controls inquiry
We walk revenue, purchases, and payroll processes with the people who perform them — not only with the finance manager — to identify where cut-off and approval risks sit.
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04
Substantive testing
Bank confirmations, receivable circularisation where warranted, inventory observation, cut-off tests, and related-party tracing fill the working papers. Sample sizes follow the planning memo, not last year’s habit.
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05
Disclosure checklist & partner review
Notes and accounting policies are checked against the applicable framework. A partner reads the draft report and findings memo before anything reaches the board.
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06
Delivery & file assembly
You receive the review report, findings memo, and a closed working-paper file index. Management representation letters are collected before the report date.
What we document
- Planning materiality and significant risk notes
- Confirmation control logs
- Inventory count observation sheets
- Disclosure checklist tied to the reporting framework
- Subsequent events review through report date
What we refuse to rush
We will not date a review report before bank confirmations return, before inventory count differences are resolved, or before management signs the representation letter. Compressed timelines are discussed at acceptance — not invented mid-fieldwork.
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