Over a thousand publicly traded companies in China have retained the same auditing firm for more than a decade, with some relationships spanning twenty to thirty years. While non-state-controlled companies are not mandated to rotate auditors, industry insiders suggest that such prolonged engagements can compromise the independence and effectiveness of audits, potentially increasing risks. This practice contrasts with regulations for state-owned enterprises, which limit continuous auditor appointments to eight years, extendable to ten, before requiring rotation. AI
RANK_REASON The item discusses a policy issue regarding auditor rotation and potential risks, but does not announce a new policy or a specific event.
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