The document attachment system (hereinafter referred to as DAS) has not yet to be recognized as an
assurance engagement regarding taxation by a certified public tax accountant in Japan. This research therefore
first reviews its historical background - in 1949, seven years before the establishment of the document attachment system, a proposal was made to include a tax notary whose job is to certify financial statements submitted to the tax authorities as a qualified public officer - and then examines whether the system guarantees to improve the reliability of tax returns by a tax accountant.
(1) According to previous research, the DAS is an epoch-making system which exists only in Japan in terms of taxation assurance, and has been viewed as a kind of proof act, a kind of character similar to auditing,
attached audit certificate, and tax audit certification service.
(2) In the process up to the establishment of the DAS, the National Tax Agency has proposed a tentative
proposal to the Ministry of Finance to enable tax accountants to certify tax documents.
(3) Under Licensed Certified Public Tax Act, tax accountants are required to maintain independence in
(4) The reliability of tax returns for information users through the DAS is verifiable from data.
(5) Assurance has gradations due to its various attributes, and tax assurance engagement is considered one of them.
For these reasons above, it is concluded that the DAS is consistent with the purposes of the assurance
This paper clarifies how Management Control System (MCS) in SMEs, has been transferred to affiliated
companies and is trying to establish MCS by survey and interview researches. This paper will explain how
MCS relocation and establishment by the key person and the organization members is being carried out in
SMEs without sufficient human resources.
This paper suggests the importance of developing professional managers or executives who are familiar
with management accounting system and management by objectives in relocation and establishment of MCS in
SMEs. Specifically, Setting goals based on MCS (budget and goal management system), clarifying performance
evaluation, and carefully communicating with company members make MCS work fro management reform.
This means previous studies on US start-up companies such as Davila (2005) also applies to Japanese SMEs.
Due to the expansion of the business scale and the complexity of the organization, it is necessary for
SMEs(small and medium-sized enterprises) to introduce not only financial accounting but also management
accounting, and to review the existing management accounting system. However, according to the results of a
questionnaire survey conducted by the Japanese Association of Management Accounting Study Group in 2015,
it is difficult to say that new introduction or reconsideration of management accounting has been sufficiently
implemented in SMEs. For SMEs, introducing or revising management accounting system means a major
turning point in their management, and such management reform is often effected by some opportunities.
Therefore, this research focuses on business succession as leading opportunities. When management changes
due to the succession of business, it is also a period of enhancing momentum to work on something new
compared to the days of the previous management.
In this study, a research question (RQ) that the occurrence of business succession in SMEs could be an
opportunity to introduce or review management accounting is set based on a review of overseas prior research.
In order to examine this RQ, we discuss the relationship between the occurrence of business succession and
the introduction and review of management accounting through interviews with the Tochigi Credit Guarantee
Association and Nagaoka Ready-mixed Concrete Ltd. From the results of these two interviews, it is found
three factors that promotes the introduction and review of management accounting when business succession
occurs. First, business successors have an interest in management accounting. Second, current manager shows understanding for the importance of management accounting. Third, SMEs have in-house human resources who can proceed with the introduction of management accounting together with the business successor. By meeting these three factors as much as possible, it has become clear that the occurrence of business succession could promote and increase the possibility of new introduction or review of management accounting.