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Hong Kong Regulators Fine PwC $166M over China Evergrande Audit
PwC will set aside HK$1 billion for minority shareholders after regulators found serious audit breaches and said Evergrande’s 2019-20 revenue was overstated by 564 billion yuan.
- On Thursday, Hong Kong regulators imposed a six-month ban on PricewaterhouseCoopers from taking new clients and fined the firm for audit failures regarding China Evergrande Group.
- Evergrande overstated 2019 and 2020 revenues by roughly 564 billion yuan, with regulators finding PwC audit reports contained "false" conclusions and "serious defects" in its auditing procedures.
- Total fines and compensation reach HK$1.3 billion, including HK$1 billion for minority shareholders and a HK$300 million fine from the Accounting and Financial Reporting Council .
- Liquidators of Evergrande are pursuing separate legal actions in Hong Kong to recover funds for creditors, while PwC Hong Kong acknowledged the audit work "fell well below" expectations.
- Evergrande founder Hui Ka Yan pleaded guilty to fraud and bribery this month, as the property sector slump continues to weigh on China's broader economic growth and investment sentiment.
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PwC stated that it has taken accountability and remedial measures in the past two years, including the appointment of a new leadership and the closure of the relevant audit subsidiary
·Brazil
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Times of IndiaReposted by 
The Economic Times
The Economic TimesPwC Hong Kong to pay Evergrande shareholders HK$1 billion in compensation, SFC says
PricewaterhouseCoopers LLP will pay HK$1.3 billion in fines and compensation to settle investigations into its auditing of collapsed property giant China Evergrande Group. The firm also faces a six-month suspension from new listed audit clients in Hong Kong. This agreement resolves regulatory matters stemming from audits over five years ago.
·India
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Total News Sources24
Leaning Left6Leaning Right3Center5Last UpdatedBias Distribution43% Left
Bias Distribution
- 43% of the sources lean Left
43% Left
L 43%
C 36%
R 21%
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