PwC, a major UK accounting firm, has been hit with a six-month ban in China.
PwC's Chinese auditing division has been suspended for six months due to its role in auditing the now-collapsed property giant Evergrande. The accounting firm has also been fined over $62 million (£47 million) by Chinese authorities, who accuse it of helping to conceal fraud at Evergrande, which collapsed in January under a massive debt load.
PwC China acknowledged that its work fell "unacceptably below" the firm's expected standards and apologized to its clients for the fallout. Authorities claim PwC was aware of "major misstatements" in Evergrande’s financial statements during its audits.
In response, China's Ministry of Finance has imposed "administrative penalties" and suspended PwC ZhongTian's auditing services for six months, though its non-audit services remain unaffected. ...