Japanese accounting profession in transition

This study describes the history and present conditions of the accounting profession in Japan. In particular, the crises of the 1990s have highlighted the fact that Japanese CPAs operate under quite different institutional arrangements from their Anglo‐American counterparts. In addition, there are no equivalent Japanese bodies to the British Chartered Public Finance Accountants and Chartered Management Accountants for public sector or management accountants. This paper identifies factors behind such differences. We discuss three points at issue: currently existing problems with auditing in the private sector, the long absence of external auditors in the public sector and the reason why the accounting profession has not been formed in a management accounting field. Finally, we point out issues involving the Japanese accounting profession that might be tackled in the future.