#Japan #Tokyo #Avantia #Sanke #THUMGY Data

Avantia's Strategic Acquisition of Sanke Business Consulting

In a significant move to enhance its capabilities in digital auditing, Avantia Audit Corporation, headquartered in Chiyoda, Tokyo, announced its acquisition of all shares of Sanke Business Consulting, a firm specializing in data analysis tools, effective from May 16, 2025. This acquisition aims to bolster Avantia’s digital transformation initiatives, particularly in leveraging data analysis for audit processes.

The landscape of auditing is rapidly shifting due to the ongoing digital transformation, where businesses are increasingly relying on databases for information management. With this transition, the importance of data analysis in auditing has been underscored, especially in light of the challenges faced by small to medium-sized audit firms, such as labor shortages. In response, Avantia established its Digital Innovation Promotion Office on February 1, 2025, emphasizing the need to integrate technologies like generative AI into the auditing process.

Through the acquisition of Sanke Business Consulting, Avantia is poised to accelerate digital innovation within the auditing industry. Sanke has demonstrated notable success in developing and implementing its proprietary data analysis tool, THUMGY Data, confirming its technological capabilities. Currently, the firm is also focusing on integrating generative AI into data analysis, showing its forward-thinking approach to advanced technologies.

Avantia is not only looking to leverage Sanke's expertise in data analysis but also aims to actively incorporate data-driven methods throughout its auditing processes. The firm is developing AI agents capable of autonomously creating audit documents, showcasing a pivotal shift in audit operations towards increased efficiency and effectiveness.

Insights from Digital Innovation Office

Ryuunosuke Tanaka, Partner and Head of the Digital Innovation Promotion Office at Avantia, shared insights on the necessity of integrating digital technologies into auditing practices. He noted that Japan's economy is at a critical juncture, grappling with rapid digital transformation, the proliferation of generative AI, and intensifying competition in the global market. Consequently, the audit profession must evolve from traditional paper-based practices to approaches centered around data analytics.

Tanaka expressed enthusiasm for welcoming Sanke Business Consulting into the Avantia family, highlighting their expertise in data analysis and the development of high-quality auditing tools utilizing technology. By merging Sanke’s strengths with Avantia's audit knowledge, Tanaka believes new auditing tools can be developed, providing significant value to the entire industry.

One transformational aspect being explored is the autonomous generation of audit documents by AI agents. This innovation is expected to free auditors from routine tasks, allowing them to focus on complex procedures that require sophisticated judgment, thereby enhancing the quality of audits provided by Avantia and offering additional value to clients.

Commitment to Technological Advancement

Avantia, established in 2008, has consistently aimed to support growth enterprises as a venture audit firm in Japan. The company has implemented a robust organizational framework for conducting audits while fostering an environment that encourages individual critical thinking and professional judgment among its employees. As a result, Avantia has grown to manage audits for over 40 listed client companies.

In addressing the digitalization challenges faced by small audit firms, Avantia has proactively adopted an in-house developed electronic audit documentation system. Furthermore, through a partnership with ADIC, they've begun licensing this system to other firms to collaboratively address challenges within the industry.

Moreover, Avantia prioritizes sustainability in a world rife with uncertainties, promoting independence and self-sufficiency among its workforce. Notably, since its inception, Avantia has embraced initiatives allowing for side jobs and dual careers, recognizing the importance of individual sustainability within the organization.

Looking towards the future, Avantia has set ambitious growth objectives with its mid-term vision, Avantia2030. This vision emphasizes not just serving the firm's interests but also recognizing and addressing the needs of the broader industry and society.

Future Goals

Avantia envisions not merely being a top firm in scale but leading the auditing sector in Japan, intending to provide the highest quality audits while adding significant value through consultative elements. The firm aims for sustainable organic growth and strives to become a premier provider of IPO auditing services, supporting the next generation of growth companies.

In conclusion, as Avantia embarks on this new chapter with Sanke Business Consulting, the firm reaffirms its commitment to harnessing technology to propel the auditing profession into the future, ensuring it remains a vital contributor to both enterprises and society at large.