Japan's audit base weakening despite growth in CPA applicants

TOKYO -- The number of Japanese taking the test to become a certified public accountant is on the rise. After bottoming out in 2015, applicants doubled in the eight years through 2023, exceeding 20,000 for the first time in 12 years. Stronger disclosure of nonfinancial information and compliance with international accounting standards has led to stronger corporate demand, making it easy for CPAs to find a job or change jobs. However, only 40% of CPAs now work for auditing companies, down from 50% 10 years ago.