ABSTRACT
This chapter aims to provide insights into the change and continuity in the Japanese accounting industry. In order to embrace change and continuity, the concept of the "convoy system" provides a useful anchor. Under the convoy system, governmental intervention resulted in no bank failure, and it had significant implications for the auditing function. The chapter examines an interpretive policy analysis perspective in order to fully utilize the concept in such a way to capture changes at both the formal and daily operation levels. It discusses the implications of the findings in terms of the convoy system from the interpretive policy analysis perspective and sheds light on the Toshiba scandal. The Toshiba case would be particularly useful since various sources of data reveal their auditing practices – usually difficult to penetrate since accounting firms do not usually provide detailed information about their client firms.
