Disclosure support leader Takara Printing and Julio to prevent corporate fraud -- AI to support internal control evaluation, service launch for listed companies

Julio Inc. (Headquarters: Minato-ku, Tokyo; Representative Director: Kenji Ubagai, Certified Public Accountant) and Takara Printing Co., Ltd., a leader in the disclosure support market, will jointly offer a service that uses AI to support management's internal control (J-SOX) evaluations.

By supporting the disclosures of listed companies and protecting the trust of the capital markets, Takara Printing is extending its role into the governance domain to help prevent corporate fraud.

This service will be offered simultaneously by Julio as "Julio Control Evaluation AI" and by Takara Printing as "WizLabo Keeper" starting in September 2026.

In advance of this, starting today, we will sequentially accept inquiries for demonstrations and consultations for early adoption of some features.

The AI will read and verify the content of documents such as invoices and contracts (evidence) and evaluation procedures, and point out areas requiring attention. This AI will handle tasks that previously relied solely on the eyes of trained personnel.

1. Background of the Service -- Takara Printing, which has protected market trust through disclosure, expands into governance

In internal control evaluations by management, the question now is whether the evaluations can effectively address increasingly complex and sophisticated fraud risks.

The revised standards for the Internal Control Reporting System (J-SOX) will apply to fiscal years beginning on or after April 2024, requiring measures that consider fraud risks.

On the other hand, due to the increasing complexity of transactions, the growing volume of data, and a shortage of personnel responsible for evaluations, human-only evaluations have limitations.

For Takara Printing, the object to be protected remains the trust of the capital markets, whether in disclosure or governance, and these two areas are contiguous. This service is the first step, and the company plans to offer additional features and applications in the future.

2. What is "Julio Control Evaluation AI"? -- An AI that verifies evidence and evaluation procedures

Julio Control Evaluation AI is an AI service specifically designed for the task of internal control evaluation.

It reads and cross-references not only the format but also the content of evaluation documents such as evidence and the "3点セット" (three点セット: RCM, business description, flowchart), and points out areas requiring attention.

This is a task that previously required trained personnel to read each item one by one.

Unlike general-purpose generative AI (chat AI) tools, this AI is integrated into the evaluation procedures themselves, accompanying the AI throughout the entire evaluation process.

Internal control evaluation is conducted in two stages: "evaluation of design" to confirm whether controls are appropriately designed, and "evaluation of operating effectiveness" to confirm whether controls are operating as designed.

This service supports evaluations in both stages with AI.

Evaluation Phase

AI Support

Evaluation of Design

Reads RCM, business descriptions, and flowcharts (3点セット) across the board and points out inconsistencies. Based on the evaluation results, it also suggests candidates for RCM revisions (adoption or rejection is decided by the user company, not the AI).

Evaluation of Operating Effectiveness

AI reads evidence and verifies it against evaluation procedures. It checks the content, including dates and amounts, and points out areas requiring attention as "requires confirmation." It supports the entire process from the extraction of evaluation targets to the receipt and confirmation of evidence.

* The evaluation of design confirms the design of controls, and the evaluation of operating effectiveness confirms the operation of controls.

Furthermore, it includes foundational functions for centrally managing internal control evaluations, such as approval workflows, viewing rights for auditing firms (granted at the company's discretion), management by site/department, and closing the fiscal year and carrying over to the next.

In all phases, the AI's role is limited to reading, verifying, and pointing out issues; the conclusion of the evaluation is always made by a human.

Who confirmed, how humans made their judgment, and the reasons why -- the record of the evaluation remains, allowing companies to explain the validity of their self-assessments in their own words and present them to auditors with supporting evidence.

AI Operating on a Foundation

Scope of Coverage and Future Expansion

Evaluation Area

Status

Internal controls related to business processes

Covered

Company-wide internal controls

Scheduled for coverage within 2026

Closing and financial reporting processes

Under development

IT general controls

Under development

In the future, coverage is planned for all areas of internal control evaluation.

3. Simultaneous Rollout by Market Leader Takara Printing

Julio Control Evaluation AI will be simultaneously rolled out by Takara Printing as "WizLabo Keeper," as part of its disclosure support platform "WizLabo" series.

The fact that Takara Printing, a market leader, is offering it under its own brand underscores the reliability of this service.

WizLabo Keeper Julio Control Evaluation AI

4. Technical Backing -- Accountant's Expertise and Patents

General-purpose generative AI cannot directly handle internal control evaluations because they do not incorporate the procedures and judgments specific to this specialized professional task.

Julio Control Evaluation AI was designed by certified public accountants and built with proprietary technology that integrates internal control audit expertise into the evaluation procedures themselves.

This technology supports effective evaluations that consider fraud risks and helps to record the basis for them.

Julio has filed multiple patent applications related to this service, including its core document verification technology.

5. Representative Comments

Kenji Ubagai, Representative Director, Julio Inc. (Certified Public Accountant)

"Internal control evaluations have entered an era where fraud risks must be considered, and human resources alone can no longer support them. AI supports accuracy, and humans make the conclusions. This service thoroughly enforces that division of roles. Together with Takara Printing, which has supported the disclosures of listed companies, we will protect the trust of Japan's capital markets. This is the first step."

Jo Ikenushi, Executive Officer, General Manager of ICT Sales Department, Takara Printing Co., Ltd.

"We have approached the improvement of capital market trust to date. The expansion into the internal control domain with 'WizLabo Keeper,' supported by Julio's advanced technological capabilities, is a significant evolution to truly achieve that goal. We will continue to expand the WizLabo brand and pursue challenges under the product vision of 'guiding financial closing stakeholders to essential tasks.'"

6. Service Overview

Service Name

Julio Control Evaluation AI (offered by Takara Printing as "WizLabo Keeper")

Launch Date

Scheduled for September 2026 (for both Julio Control Evaluation AI and WizLabo Keeper)

Advance Inquiries

Starting after the announcement, inquiries for demonstrations and early adoption of some features will be sequentially accepted.

Service Format

Cloud service (SaaS)

Target Audience

Internal control and internal audit departments of listed companies (support for management's self-evaluation)

Pricing

Will be provided individually

The official launch is scheduled for September 2026. In advance of this, we will sequentially accept inquiries for demonstrations and consultations for test and early adoption. Companies facing challenges with internal control evaluations are encouraged to contact us.

7. Company Overview

Julio Inc. https://julio.jp

Location

LiSH, 2-22-1 Takanawa, Minato-ku, Tokyo, THE LINKPILLAR 2F, 4F

Representative

Kenji Ubagai, Representative Director (Certified Public Accountant)

Business Activities

Development of AI services (cloud/SaaS) and custom AI systems specializing in accounting, auditing, and internal control. Also expanding into financial and customs classification domains.

Takara Printing Co., Ltd. https://www.takara-print.co.jp

As a company that supports the creation of disclosure and IR-related documents, we have supported the information disclosure of listed companies and IPO-candidate companies for approximately 70 years since our founding. Based on the knowledge and know-how cultivated over many years as a leading company in the disclosure and IR fields, we will further refine our expertise and contribute to the expansion of our customers' corporate value.

8. Inquiries Regarding This Matter

Julio Inc. Public Relations Contact E-mail: [email protected]