PwC China's auditing unit is reportedly facing a six-month business ban and a fine of over $56 million for its audit of Evergrande. The penalties would restrict PwC China's securities work, including IPOs, funds, state firms, signing off on results, IPO applications, and working with listed firms.
This follows Deloitte Beijing's three-month suspension and a fine of over $30 million for audit failures. The ban is expected to be the toughest penalty ever received by a Big Four firm in China.
PwC audited Evergrande for nearly 14 years until early 2023, which led to an exodus of clients, cost cuts, and layoffs at the firm. The penalties could also prevent PwC Zhong Tian from taking on new state-owned or listed clients for three years.
PwC China is expecting a record fine and a ban from auditing mainland firms, but it will retain its tech giant clients.
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