On Friday, the China Securities Regulatory Commission (CSRC) and the country's Ministry of Finance fined PwC China a record $62 million and banned the firm for six months for having “concealed or even condoned” fraud at collapsed property developer Evergrande.
The regulators found that PwC China's Guangzhou branch failed to report "major mistakes" it had found in Evergrande's accounts from 2018 to 2020. PwC China's audit work was described as having "severe flaws," with 88% of audit records not reflecting the true state of Evergrande's projects. "PwC's behaviour goes beyond mere auditing failure, they concealed or even condoned the financial fraud and fraudulent issuance of corporate bonds," the CSRC said.
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