ABSTRACT. PCAOB state that the effective internal control over financial reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes. Iwasaki says that the organizational advantages of a closed JSC as an “institutional defense barrier” become trivial for group companies. Burchell et al. argue that, in wider social practice, accounting innovations satisfy more general searches for the extension of calculative practice which are embodied within the societies of which organizations are a part.