HONG KONG — Chinese authorities haveactually prohibited the accounting company PwC for 6 months and fined it over 400 million yuan ($56.4 million) over its participation in the audit of collapsed residentialorcommercialproperty designer Evergrande.
The penalty is the heaviest yet for worldwide accounting companies operating in China. PwC will be prohibited from finalizing off on any monetary results in the nation for 6 months. Already, it hasactually been losing customers.
China’s Ministry of Finance stated in a declaration Friday that it was enforcing 116 million yuan ($16.35 million) in fines and confiscation of prohibited gains on PwC Zhong Tian, likewise understood as PwC China, as well as a six-month company suspension, cancellation of PwC’s Guangzhou branch and an administrative caution.
A different regulator, the China Securities Regulatory Commission, likewise enforced fines and confiscations amountingto 325 million yuan ($45.8 million) on PwC for apparently stoppingworking to carryout due diligence in the audit of Evergrande.
China’s financing ministry stated PwC provided “false audit reports” of Evergrande and that the audit treatments had “serious problems” in style and application, leading to lotsof incorrect conclusions. It likewise implicated PwC of not preserving “professional hesitation” and stoppingworking to point out mistakes and a absence of informa