PwC braces for China crisis and a hefty fine

PwC’s role in approving accounts for troubled property developer Evergrande has led to infighting at the big four firm as clients reconsider their relationship.

Stephen Foley, Sun Yu and Cheng Leng

May 23, 2024 – 8.37am

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PwC is facing a crisis in China as partners brace for penalties over its audit of collapsed property developer Evergrande and some clients reconsider their relationship with the accounting firm.

China’s securities regulator ruled in March that Evergrande had inflated its mainland revenues by almost $US80 billion ($120 billion) in the two years before the developer defaulted on its debts in 2021, despite PwC giving the accounts a clean bill of health.

Financial Times