1. Major Change in the Role of JICPA for the New Economy Hiroshi NAKACHI Ex-President, The Japanese Institute of Certified Public Accountants Representative Senior Partner, Nakachi Audit Corporation Japan

2. The Changing Function of the CPA in the Knowledge-based Economy ----Case of the JICPA Experience-— Hiroshi Nakachi Ex-President of the Japanese Institute of Certified Public Accountants (JICPA) Representative Senior Partner NAKACHI Audit Corporation, Japan

3. I. Introduction II. Accounting Standards as the Basic Infrastructure of the Economy III. Auditing Standards and Practices IV.Human Resources V. Accounting and Auditing Standards for the Public Sector VI. Conclusion

4. II ． Accounting Standards as the Basic Infrastructure of Japanese Economy 1. Establishment of an independent private sector accounting standard-setter 2. Establishment of accounting standards for small and medium companies

5. Organization of the Financial Standards Foundation

6. III. Auditing Standards and Practices 1. Establishment of a new auditing standards framework 2. Quality Control Review System Report Quality Control JICPA Review Team Oversight Board Recommendation (Non-CPAs) Review in-house quality control practices Audit Firms

7. JICPA Quality Control Review System

8. IV. Human Resources １． CPE program for accounting profession 2. Other forms of human resource development in accounting

9. V. Accounting and Auditing Standards for the Public Sector １． New Public Management ２． Public Accounting Standards

10. Accounting Standards in Four Sectors of Japanese Economy Private SectorPublic Sector Large corporations (IAS) Government owned corporations (Public accounting standards) Small & Medium companies (Simplified standards of IAS) Municipal government (Functioning balance sheet accounting)