A study by the Hong Kong Institute of Certified Public Accountants has found that the number of firms opting for external ‘assurance’ has increased in the last two years. The slower pace of adoption by smaller companies is probably due to doubts regarding the costs versus the benefits.
Possible reasons why listed companies in Hong Kong are increasingly opting for external auditors to check their environmental, social and governance (ESG) reporting include:
- Investors and stakeholders looking for more reliable and verifiable data
- These companies do not have full confidence in their own ESG data analysis
- Companies are trying to meet the minimum expectations of the market
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