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  5. PwC faces six-month China ban and record fine over alleged auditing mistakes at Evergrande

PwC faces six-month China ban and record fine over alleged auditing mistakes at Evergrande

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PwC's Chinese auditing arm, PwC Zhong Tian, has been penalized by Chinese authorities for its role in auditing Evergrande, a collapsed property developer. The penalties include a six-month business suspension and fines totaling over $62 million. The Ministry of Finance also confiscated the company's revenue from the Evergrande audit. This is the harshest penalty imposed on an audit firm by Beijing, and the toughest penalty yet for a Big Four accounting firm in China. The Ministry of Finance stated that PwC failed to identify Evergrande's overstated sales of almost $80 billion between 2018 and 2020, citing "severe flaws" in the auditing work that led to "many false conclusions".

  1. CN
    China Securities Regulatory Commission
    1. PwC has seriously eroded the basis of law and good faith, and damaged investors' interest.
  2. CI
    Mohamed Kande
    Price Waterhouse Coopers
    1. It is not representative of what we stand for as a network and there is no room for this at PwC.
    2. That is why, following a thorough investigation, we ensured that actions were taken to hold those responsible to account and a comprehensive remediation programme will build a stronger PwC China firm for the future. China remains an important part of the PwC network and I remain confident in the China firm's partners and staff as we work together to rebuild trust with stakeholders.

sources

  1. 1.BBC
  2. 2.Le Monde
  3. 3.The Times
  4. 4.The Guardian

perspectives

  1. 1.China under Xi Jinping
  2. 2.Chinese Economy
  3. 3.Fraud
  4. 4.Auditing

countries

  1. 1.ChinaCN

organizations

  1. 1.Price Waterhouse Coopers
  2. 2.Evergrande
  3. 3.PwC ZhongTian
  4. 4.China Securities Regulatory CommissionCN
  5. 5.Deloitte
  6. 6.Chinese Institute of Certified Public Accountants
  7. 7.Hengda Real Estate
  8. 8.KPMG
  9. 9.Chinese Finance MinistryCN

persons

  1. 1.Hui Ka Yan
  2. 2.Mohamed KandeCI
  3. 3.Hemione Hudson
PwC faces six-month China ban and record fine over alleged auditing mistakes at Evergrande