Field notes
What independence means when your auditor also knows your tax advisor
Why we decline some advisory requests, and how Kochi’s close professional circles make the boundary more important, not less.
17 February 2026 · Aya Fujimura
In a prefecture the size of Kochi’s business community, everyone seems to know everyone. That familiarity is useful for introductions. It is dangerous for auditor independence.
What we will not do for an audit client
We do not prepare journal entries, maintain the general ledger, or file corporate tax returns for an entity we audit in the same period. We may discuss the accounting treatment of a transaction; we will not decide it for management and then “audit” our own work.
What we can still discuss
Scoping calls, control recommendations, and walkthroughs of how a process should operate are part of the engagement. After the opinion is issued, limited clarification for the bank or shareholders is normal. Ongoing bookkeeping is not.
Why the boundary helps you
Lenders and shareholders rely on the idea that the opinion comes from someone who did not build the books. When that line blurs, the letter loses weight — even if the numbers happen to be right.
If you need both strong books and an audit, keep the bookkeeper and the auditor as separate firms. We are glad to recommend bookkeeping practices in Kochi that we do not own.