Many Hong Kong and mainland companies take 'too long' to work out their annual budgets, a PricewaterhouseCoopers survey has found. The survey, which polled 400 chief financial officers and senior financial executives across the Asia-Pacific, aimed at finding a link between corporate governance and finance effectiveness. About 70 per cent of the Hong Kong and mainland firms surveyed took more than two months to produce budgets, while the overall survey average was 57 per cent. Jeffrey Hermann, a PricewaterhouseCoopers partner who specialises in company management, said Hong Kong and mainland companies took too long to formulate budgets. 'In a place like China where things are changing so rapidly, we have companies with 20 per cent growth. One or two major contracts can change the dynamics of the company, so that's why putting together a budget has to be done quickly,' he said, adding that it was common for companies to revise their annual budgets. He said fast-growing companies should be able to produce budgets 'in a couple of weeks'. The survey also found about 61 per cent of participating Hong Kong firms did not have comprehensive fraud risk management programmes, the same as Singapore, but compared unfavourably with the mainland's 45 per cent. But Mr Hermann said Hong Kong's figures might not necessarily be worrying. 'Even though many of these companies do not have a formal process, they have informal ways to measure fraud,' he said. The accounting firm recommended Hong Kong and mainland firms improve their budget and forecast capabilities by making more systematic budgeting schemes.