Home > Press Room
News Releases
to Support Japanese
SOX Law Compliance
Solution combines accounting consulting know-how of CPAs at Business Brain Showa-ota with HitachiSoft’s know-how in internal control system reconfiguration
HitachiSoft launched the sale of its “Internal Control Reconfiguration Solution” on April 24th, a system that supports compliance with the Internal Control Reporting System (commonly referred to as the “Japanese SOX Law”)1 in accordance with the Financial Products Exchange Act, which goes into effect in April 2008.
This solution has at its core the “Information System Configuration Service,” which establishes organization facilitation systems and determines internal control policies to be handled by corporate groups, operates an "Internal Control Maintenance Support Consulting Service" supporting the documentation of internal controls, and configures critical information systems to continuously run internal control systems.
Since Hitachi, Ltd. is listed on the New York Stock Exchange (NYSE), HitachiSoft, as a member of the Hitachi Group, took steps to comply with the U.S. SOX Act. The new solution incorporates internal control reconfiguration solutions offered by Hitachi, Ltd. and makes use of both the know-how harnessed to date at HitachiSoft as well as other products and services provided by companies in the Hitachi Group.
Developed in conjunction with Business Brain Showa-ota, Inc. (BBS), with whom HitachiSoft recently reached an agreement regarding both business and capital tie-ups, the solution offers consulting services combining the accounting consulting know-how of BBS CPAs with HitachiSoft’s know-how in internal control system reconfiguration. Furthermore, it utilizes electronic documents held by HitachiSoft and packaged information security products and services, provides document management for internal control systems, and configures information system bases for information security measures. Additionally, the solution supports business processes and information systems by making visible the structure of the internal control systems, thus allowing for correction of their defects and inefficiencies.
Besides providing quick corporate compliance with the Japanese SOX Law, this service is expected to increase corporate value through improved operating efficiency and better risk management.
1 Internal Control Reporting System: A system incorporated in the Financial Products Exchange Act as "a system of evaluation used by organizations to guarantee the integrity of financial accounting documents and other information." The system mandates the auditing of effectiveness evaluations, reports for external dissemination, and internal controls by auditors of the internal controls imposed on financial reports by managers of firms listed on the stock exchange. It is related to the “American Competitiveness and Corporate Accountability Act of 2002” (Sarbanes-Oxley Act; Corporate Reform Act), a law enacted in the United States in July 2002 for the purpose of protecting investors by improving the accuracy and reliability of financial statements created and presented publicly in accordance with the Securities Act of 1933, and is referred to as the Japanese SOX Law.
“Internal Control Reconfiguration Solution” FeaturesThe solution supports a series of operations associated with internal control system configuration, including facilitating organizations in promoting internal control system configuration projects, selection of target ranges for advancement planning decisions, determination of basic policies, internal control documentation, and project coordination support to effectiveness evaluations. It also supports, from an operational process perspective, improvements to defects in internal controls and ineffective practices that are revealed by the transparency of the internal control structure.
2. Configures internal control systems effectively and efficiently using know-how cultivated by the Hitachi Group in complying with the U.S. SOX Act.
As a firm listed on the NYSE, Hitachi, Ltd., including its 949 consolidated subsidiaries (as of December 2005), conducts internal controls required by the U.S. SOX Act. As a member of the Hitachi Group, HitachiSoft gained know-how from servicing other members in the Hitachi Group as they grappled with issues in an effort to comply with the U.S. SOX Act. Using this know-how as a base, HitachiSoft supports internal control system configuration for businesses, making the configuration of effective and efficient internal control systems possible.
3. Provides services maximizing the management and accounting consulting know-how of BBS.
The solution offers consulting services combining the experience of HitachiSoft in configuring internal control systems with the management and accounting consulting experience of CPAs at BBS, with whom HitachiSoft recently reached an agreement regarding both business and capital tie-ups.
4. Provides information system configuration services for efficient internal control systems.
The solution supports the introduction of internal control system support tools (e.g., Katsubun series), including document management required by internal control systems, while improving operational processes and systems already in place for the purpose of complying with internal controls. Additionally, it offers tools required for overall IT control, such as information security measurement tools for securing environments where application controls use IT functions effectively (e.g., Hibun series), and hardware/network operational management tools (e.g., JP1 series).
| Name of Solution | Price | Offer Launch Date |
| Internal Control Reconfiguration Solution - Internal Control Servicing Support Consulting Services - Information System Configuration Services |
By individual estimate | April 24, 2006 |
3 billion yen over the next two years.
For additional information
* The official name of HitachiSoft is Hitachi Software Engineering Co., Ltd.
* Hibun and Katsubun are registered trademarks of HitachiSoft.
* All other company or product names are trademarks or registered trademarks of their respective companies.
Inquiries:
Mr. Toru Takehashi or Ms. Miki Takano
Corporate Communications
Hitachi Software Engineering Co., Ltd.
Tel: 03-5780-6450
Fax: 03-5780-6455
E-mail: press@hitachisoft.jp
