PwC Faces Six-Month Ban in China Over Evergrande Audit
- PwC China anticipates a six-month business ban starting as early as September due to its audit of the collapsed property developer Evergrande.
- The ban follows China's securities regulator's findings that Evergrande inflated its revenues by almost $80bn before defaulting in 2021, despite PwC's clean audit.
- This would be the toughest action by Chinese regulators against a Big Four firm, potentially accompanied by a large fine.
- The ban would prevent PwC China from signing off on financial results and IPOs, causing significant disruption despite not threatening the firm's survival.
- PwC China has already lost two-thirds of its accounting revenues from mainland-listed clients this year, prompting accelerated lay-offs to cut costs.
Source: [FT](https://www.ft.com/content/6e165676-30b1-4567-8cb1-647c15bb015d)
- The ban follows China's securities regulator's findings that Evergrande inflated its revenues by almost $80bn before defaulting in 2021, despite PwC's clean audit.
- This would be the toughest action by Chinese regulators against a Big Four firm, potentially accompanied by a large fine.
- The ban would prevent PwC China from signing off on financial results and IPOs, causing significant disruption despite not threatening the firm's survival.
- PwC China has already lost two-thirds of its accounting revenues from mainland-listed clients this year, prompting accelerated lay-offs to cut costs.
Source: [FT](https://www.ft.com/content/6e165676-30b1-4567-8cb1-647c15bb015d)
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