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AI compiled from Infoway · 9 analyzed stories

Nidec Unlikely To Be Able To Obtain Audit Opinion On Its Annual Report By End Of Month, Nikkei Says

Nidec is unlikely to obtain an audit opinion on its annual report by the end of the month, Nikkei says. Nidec plans to submit its internal control report to the Tokyo Stock Exchange by the end-of-month deadline without an auditor opinion to keep listed.

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What happened

Nidec missed an October 28 deadline to submit a corrected financial statement with its auditor's opinion. The auditor's work is unfinished because Nidec is still identifying and evaluating employees involved in inappropriate accounting. Nidec plans to give the Tokyo Stock Exchange an internal control report on Friday without the auditor's opinion.

Global impact / market context

The company's financial report has not been checked and signed off by an outside auditor. For ordinary investors, the numbers cannot yet be treated as fully confirmed. Nidec is trying to keep its listing by handing in a report on its internal controls, which are the company's own rules and checks meant to prevent accounting problems.

What to watch

  1. Whether Nidec actually submits the internal control report to the Tokyo Stock Exchange on Friday, because Nidec says this step helps it keep its listing.
  2. Whether the auditor, PwC Japan, completes its review and gives an opinion, because without it the corrected financial statement stays unconfirmed.
  3. Whether Nidec finishes identifying and evaluating the employees involved in the inappropriate accounting, because the auditor said this unfinished work is why the review is delayed.

Affected assets

  • Nidec Corporation

Evidence