Investors are concerned about the ability of the Asian audit market to keep apace with the rapid growth of businesses, says Asian Corporate Governance secretary general Jamie Allen.

'The accounting firms are running fast to try and keep up but even they admit that there is a limit to the depth of their expertise,' said Allen in an FT feature.

Unless companies improve their governance they will be shunned by moderate investors. 'These companies will have to accept lower share prices because of the corporate governance discount,' said Hong Kong-based investor activist David Webb.

Asian corporate governance has come under the spotlight again after its chairman admitted to a $1bn accounting fraud at Satyam. Investors have asked why auditors PricewaterhouseCoopers did not spot the fraud.

Further reading:

PwC hands documents to Indian Police

Read the FT's feature