PRICEWATERHOUSECOOPERS’ (PwC) China unit expects the Chinese government to hand down a six-month ban that will start as early as next month as part of punishment over its audit of failed property giant China Evergrande Group, the Financial Times (FT) reported.
The business ban that PwC outlined to its customers will potentially come with a large fine and would be the toughest ever action by the Chinese regulators against a Big Four firm, the newspaper reported, citing unidentified sources.
The penalty would stop PwC China from signing off on financial results and initial public offerings, as well as from conducting other regulated activities, the report said. PwC told clients its staff will keep working during the suspension and will be able to certify the audits on 2024 annual reports once the ban is lifted in March, the FT said.
More than 30 publicly listed firms based in mainland China, including state-owned giants Bank of China and PetroChina, have dropped PwC as their auditor this year. Most of the changes happened after the firm came under scrutiny for its role in an alleged accounting fraud at property developer China Evergrande. BLOOMBERG
