Vlad Yaitskiy
The PRC Ministry of Finance fined 116 million yuan, while the China Securities Regulatory Commission (CSRC) imposed a fine of 325 million yuan on the company.
Chinese regulators have implemented the most severe punishment in the audit industry, as reported by Associated Press.
Chinese authorities took notice of PwC following their initiation of a probe on financial misconduct at Evergrande. Earlier this year, Beijing imposed a penalty of 4.18 billion yuan on the property developer due to the revelation that its primary sector, Hengda Real Estate, had inflated revenue by 564 billion yuan in 2019 and 2020.
During this time, Hengda's auditor was PricewaterhouseCoopers Zhong Tian, which is a unit of PwC listed on the Shanghai stock exchange. Evergrande had the same auditor for over a decade. The developer credited audit problems as the reason for the parties separating in January 2023.
source: apnews.com
Chinese regulators have implemented the most severe punishment in the audit industry, as reported by Associated Press.
Chinese authorities took notice of PwC following their initiation of a probe on financial misconduct at Evergrande. Earlier this year, Beijing imposed a penalty of 4.18 billion yuan on the property developer due to the revelation that its primary sector, Hengda Real Estate, had inflated revenue by 564 billion yuan in 2019 and 2020.
During this time, Hengda's auditor was PricewaterhouseCoopers Zhong Tian, which is a unit of PwC listed on the Shanghai stock exchange. Evergrande had the same auditor for over a decade. The developer credited audit problems as the reason for the parties separating in January 2023.
source: apnews.com