DATE PUBLISHED: JUNE 13, 2025
Markets in the Asia Pacific region follow their own rules when it comes to auditing practices from the tenure length of auditors and committee members to their independence and the amount non-auditing work they do for clients.
Investors and other stakeholders have expressed concerns that some of these practices may be less robust in terms of assuring auditor independence than those in place in other markets.
ISS-Corporate breaks down break down the audit landscape in Asia Pacific by providing a cross-market comparison and analysis on audit committee composition, external auditor tenure, and the proportion of total fees going to non-audit activities.
Download the report to discover:
- Key Insights: Audit committee independence varies widely across the Asia Pacific region, with 86% of Taiwan companies having fully independent compared with only 19 to 64% in markets including Hong Kong, Singapore, Australia, India and China (A-Share). The average tenure of external auditors also varies and there is an ongoing debate on whether companies should introduce mandatory external auditor rotation and uphold a cap on tenure.
- Potential Challenges: Rotating auditors to limit their tenure can be both costly and time consuming as the new auditors take time to familiarize themselves with a company’s procedures. Auditors need to have a long-term rotation strategy in place in case companies do not want both the lead and review auditors to be rotated at the same time.
