Japanese Motor Giant Nidec Delays Resolution of Audit Disclaimer as PwC Demands Investigation of 132 Executives
Nidec failed to clear its two-year consecutive audit disclaimer on schedule after PwC Japan expanded its verification of management attestations.
Japanese motor manufacturer Nidec announced on October 28, 2026, that it could not resolve the audit opinion disclaimer for its fiscal year ending March 2026 by the planned deadline. The company had aimed to obtain an audit opinion and submit corrected securities reports by this date, but its accounting auditor, PwC Japan, requested new additional investigations.
According to EE Times Japan, PwC detected matters requiring further confirmation during email screening procedures, leading to an expansion of the investigation scope. Specifically, regarding "Management Representation Letters" submitted by heads of various business bases to auditors, PwC requested additional investigation of 252 signature candidates. After consultation, 120 individuals were assessed based on existing findings, while the remaining 132 require verification through email confirmations, interviews, and external expert evaluations.
Nidec plans to complete the additional work for these 132 individuals within November 2026, but the overall audit completion timeline remains undetermined. This delay means Nidec will remain designated as a security under special caution by the Tokyo Stock Exchange. The company has received audit disclaimers for two consecutive fiscal years (ending March 2025 and March 2026), primarily due to incomplete identification and personnel correction measures for employees involved in improper accounting practices, as well as insufficient audit evidence for accounting treatments such as asset impairment losses.