Note: This post was modified on April 19, 2019 to incorporate updated tenure information.
In this post, we look at the longest auditor tenures of the companies in the top Nordic indices. This includes a review of 108 companies, with only one having a joint audit.
As shown in the graph below, nine of these 108 companies, or 8%, have an auditor tenure of over 25 years. This is contrasted to 57% of the companies with an auditor relationship of ten years or less. Twenty-six percent of the companies have an auditor relationship spanning between 11-20 years, and 9% have engaged their auditor between 21-25 years.
PricewaterhouseCoopers has audited Kone Oyj (KNEBV: NASDAQ OMX Helsinki), a Finnish company included in the OMX H25, since 1957 – the longest auditor tenure among companies in the Nordic indices. Other companies with tenures over 25 years are listed in the table below.
These companies could soon be up for rotation in 2020, according to the EU transition rules on Mandatory Firm Rotation. However, all of the EU Nordic countries adopted the option to permit an extension of the audit engagement following a tender or, in some countries, a dual audit.
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