PwC Fined $62 Million and Suspended in China Over Evergrande Audit Failures

Chinese regulators penalize PwC for failing to detect and report financial misstatements in Evergrande's audits, leading to a six-month business suspension.

PwC's Chinese unit has been banned for six months and fined 441 million yuan ($62 million) for its audit work on Evergrande.
The penalties include the suspension of PwC's business operations and the revocation of its Guangzhou branch license.
Investigations revealed PwC failed to identify major financial misstatements in Evergrande's accounts from 2018 to 2020.
PwC has terminated six partners and five staff members involved in the audit, and is implementing a remediation program.
The penalties mark the harshest action ever taken against a Big Four accounting firm in China, impacting PwC's market position and client base.

South China Morning Post