Auditors struggling to keep up with Asian business boom
Auditors struggle to keep apace with explosion in Asian markets
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