Chinese regulators impose six-month ban, $62M fine on PwC’s China unit
By 
Aaron Nicodemus2024-09-16T19:45:00
Chinese authorities banned PwC’s Chinese unit from performing audits in the country for six months, labeling the subsidiary’s flawed audit work as complicit in the failure of giant property developer Evergrande. The move continues a pattern of increased scrutiny of Western firms’ audit work in China, both by regulators in China and the U.S.
The punishment against PwC Zhong Tian also included a record fine totaling 441 million yuan ($62 million), published Friday by China’s Ministry of Finance and the China Securities Regulatory Commission (CSRC). The penalties were imposed for the flawed audits of Hengda Real Estate, a subsidiary of failed property developer China Evergrande Group, the regulators alleged.
Following an investigation, the CSRC concluded the firm “turned a blind eye” or “even condoned” Evergrande’s fraud while conducting audits of Hengda in 2019 and 2020.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefPCAOB fines KPMG China partners combined $150K over audit violations
The Public Company Accounting Oversight Board imposed collective fines totaling $150,000 against three partners at KPMG China for violations of standards related to their audit work at education service provider Tarena International.
-
News BriefChina-based Cloopen Group avoids fine in SEC accounting fraud case
China-based technology company Cloopen Group Holding won’t pay a fine in settling with the Securities and Exchange Commission over an alleged accounting fraud scheme perpetrated by two of its former senior managers.
-
PremiumWhat future holds for PCAOB post China crackdowns
The Public Company Accounting Oversight Board’s first enforcement settlements with mainland China and Hong Kong firms won’t be the last, as the chair of the regulator says its “just getting started.” U.S. firms must be mindful of the specific ethical issues highlighted.
More from Accounting & Auditing
-
PremiumExperts explain why IIA's new global audit rules will be 'central' to securing high-quality assurance
Compliance teams should expect more support from their organization’s internal audit functions. That is the clear message from the Institute of Internal Auditors, the global body of national affiliated internal audit institutes, which has just put into action its new Global Internal Audit Standards.
-
News BriefPCAOB Chair Williams appointed to second term
Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.
-
News BriefAutodesk says no restatements following accounting probe
Software company Autodesk said it won’t restate several years of financial statements following an audit committee investigation into potential accounting misconduct.