PwC China has been hit with a record penalty of CNY441 million (US$62 million), along with a six-month shutdown, for its fraudulent auditing work for the main Chinese mainland subsidiary of collapsed real estate giant China Evergrande Group, reports Caixin.
pricewaterhousecooper China failed to exercise due diligence when auditing Hengda Real Estate Group's 2019 and 2020 annual reports and providing the property firm with bond issuance services, a spokesperson for the China Securities Regulatory Commission (CSRC) said in a Q&A.
The top securities watchdog levied a CNY325 million penalty on PwC China, the highest it has ever imposed on an auditing firm.
The amount, which includes confiscation of illegal gains, nearly matches the total penalties the CSRC had imposed on more than 50 auditing firms over the past three years.
Alongside the CSRC probe into the 'Big Four' accounting firms, an investigation launched by the Ministry of Finance (MOF) in January resulted in a CNY116 million penalty. The amount consists of fines and confiscation of illegal gains from the firm's auditing work for Hengda in 2018.
SeaNews Turkey
pricewaterhousecooper China failed to exercise due diligence when auditing Hengda Real Estate Group's 2019 and 2020 annual reports and providing the property firm with bond issuance services, a spokesperson for the China Securities Regulatory Commission (CSRC) said in a Q&A.
The top securities watchdog levied a CNY325 million penalty on PwC China, the highest it has ever imposed on an auditing firm.
The amount, which includes confiscation of illegal gains, nearly matches the total penalties the CSRC had imposed on more than 50 auditing firms over the past three years.
Alongside the CSRC probe into the 'Big Four' accounting firms, an investigation launched by the Ministry of Finance (MOF) in January resulted in a CNY116 million penalty. The amount consists of fines and confiscation of illegal gains from the firm's auditing work for Hengda in 2018.
SeaNews Turkey
