CosmicTaco

PwC Faces Six-Month Ban in China Over Evergrande Audit

CosmicTaco · 2024-08-22T08:45:45.072635+05:30

- PwC China anticipates a six-month business ban starting as early as September due to its audit of the collapsed property developer Evergrande. - The ban follows China's securities regulator's findings that Evergrande inflated its revenues by almost $80bn before defaulting in 2021, despite PwC's clean audit. - This would be the toughest action by Chinese regulators against a Big Four firm, potentially accompanied by a large fine. - The ban would prevent PwC China from signing off on financial results and IPOs, causing significant disruption despite not threatening the firm's survival. - PwC China has already lost two-thirds of its accounting revenues from mainland-listed clients this year, prompting accelerated lay-offs to cut costs. Source: [FT](https://www.ft.com/content/6e165676-30b1-4567-8cb1-647c15bb015d)

PwC China anticipates a six-month business ban starting as early as September due to its audit of the collapsed property developer Evergrande.
The ban follows China's securities regulator's findings that Evergrande inflated its revenues by almost $80bn before defaulting in 2021, despite PwC's clean audit.
This would be the toughest action by Chinese regulators against a Big Four firm, potentially accompanied by a large fine.
The ban would prevent PwC China from signing off on financial results and IPOs, causing significant disruption despite not threatening the firm's survival.
PwC China has already lost two-thirds of its accounting revenues from mainland-listed clients this year, prompting accelerated lay-offs to cut costs.

Source: FT