More institutional investors are voting against the appointment of companies’ preferred auditors, reflecting dissatisfaction with their services and concern for conflicts of interest. Opposition to auditor choice has been rising among questions regarding the quality of audit work.
Nearly 4% of investors voted against the ratification of S&P 500 companies’ auditors this year through May 19, almost triple the proportion of a decade earlier, according to research firm Audit Analytics. Shifts in shareholder sentiment will likely cause companies to think more critically about their choices and potentially switch auditors.
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