Products, Services and Support


Data Assurance Service

Provision of solutions that raise awareness to ensure the credibility of a subsidiary's financial data for correct and prompt business decision making

  • Overview

One of the missions of the Accounting department is to ensure the credibility of numerical disclosure. However, while companies have been accelerating internal control initiatives since the enactment of JSOX, etc., only a few are confident in securing, and even guaranteeing, the credibility thereof as the number of group companies, particularly overseas subsidiaries, has been increasing recently. Pressured by increasingly complex schemes and transactions, as well as strict deadlines for announcing earnings and other disclosure, it is becoming harder to check all items thoroughly.

Financial statements generally are verified by the Accounting department, and are rarely audited by the Internal Control department. However, the Accounting department is only responsible for numerical accuracy. Only a few companies audit their financial statements from a fraud-detection standpoint. Many companies conduct an ex-post review of samples using CAAT tools, etc.; however, there is concern about the completeness and immediacy thereof.

Here is a solution that has been developed by DIVA to help verify a financial statement from a numerical accuracy and fraud-detection standpoint.

Concept of fraud-detection solution

Our service aims to help ensure the "accuracy of reported numbers (free from fraud and misrepresentation,)" one of the missions of CFO/Accounting Departments, "with immediacy."

▼Current challenge

  • The process of preparing values to be reported in the consolidated financial reports of overseas subsidiaries lacks transparency, making it unreliable.
  • The process is dependent on the individual policies of each company, and lacks a unified procedure for consolidated reporting as a group.
  • While internal control initiatives including JSOX are moving forward, there is a question about the timing and completeness of financial report audits.
  • The journal entries of a subsidiary are available, but it is difficult to check their accuracy one by one.
  • The Internal Control department is aware of this matter but is unable to address it due to a shortage of staff.

For preventing and monitoring fraud, it is considered effective to put in place three lines of defense.

DIVA proposes a fraud prevention and detection solution that requires the involvement of "the Accounting department of a subsidiary" and "the Accounting department of a parent company," the both of which deal with accounting data, and "the Internal Control department." This solution is workable as part of the existing operations for consolidated financial reporting, without adding an operational burden for checking.

Effects of introduction

This solution helps the accounting division first become aware of a fraud check alert. The Internal Control department is also allowed to monitor the fraud check status of all subsidiaries.

How it differs from other services

The incorporation of our service into consolidated accounting operations has the following effects:

  • Cuts the procedure of re-collecting journal entries for the purpose of checking and other procedures, lowering a psychological hurdle
  • Secures the credibility of disclosed values because they are thoroughly verified before disclosure
  • Provides a scheme that enables an operation to be cooperatively handled by the Internal Control department and the Accounting department
  • Provides a group-wide scheme that enables cross-checking and correction together with a subsidiary, instead of independent checking by the parent company