Audit

In 2015, Toshiba was hit by a systemic financial fraud scandal that had gone on for seven years.

Three successive presidents had taken part, and the amount involved reached more than 150 billion yen.

The firm responsible for auditing Toshiba was none other than ShinNihon Audit Corporation.

For seven years, it had issued unqualified audit reports year after year.

Fraud on that level was absolutely not something a few executives could pull off on a whim. It required tight coordination across finance, sales, production, and every other link—and even more than that, it required the "tacit understanding" of an external audit firm.

Sega's current operation was spreading wider and wider.

North America, Europe, China—the major markets were advancing shoulder to shoulder.

Hardware production lines were running at full capacity, and software development budgets easily ran into several million dollars.

Tens of billions of yen in cash were flowing through the books.

As long as someone made a slight move in the supply chain or sales channels, inflating profits, hiding losses, and producing a beautiful set of financial statements would not be difficult.

To entrust the company's lifeline entirely to the professional integrity of these few domestic audit corporations was far too risky.

Nakayama Takuya closed the book, reached out for the telephone receiver on his desk, and dialed Director Hoshino's extension.

"Executive director," Hoshino said as he picked up.

"Hoshino-san, please come to my office. And bring Sega's external audit contracts from the past three years with you."

A few minutes later, Hoshino pushed the door open and came in, a document envelope in his hand.

He sat down in the chair across from the desk and handed the envelope over.

"These are the contracts you asked for. We've always signed them with ChuoAoyama Audit Corporation," Director Hoshino reported.

Nakayama