CEO Morning Brief

PwC Denies Allegations of Its Role in Auditing Evergrande

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Publish date: Wed, 17 Apr 2024, 09:18 AM
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TheEdge CEO Morning Brief

(April 16): PricewaterhouseCoopers LLP (PwC) said it will investigate an anonymous letter circulating on social media that made “false allegations” about the company and its partners over its role in auditing China Evergrande Group.

“We believe the letter contains inaccurate statements” that “could tarnish PwC’s reputation and infringe” its legal rights, the company said in a statement on Tuesday. PwC Hong Kong has reported it to relevant authorities, and is “treating this incident with high priority”, it said.

PwC has been under the spotlight after China launched one of the biggest investigations of financial fraud in history. Authorities said developer Evergrande’s main onshore unit overstated its revenue in the two years through 2020. The government is examining PwC’s role as a former auditor for the real estate company, people familiar said in March.

The letter questioned PwC’s role in Evergrande’s accounting fraud among other corporate governance issues.

Bloomberg was unable to verify the authenticity of the letter.

The auditor has run into trouble in other regions. It pledged to boost governance controls in Australia over questions of a serious conflict of interest in leaking government tax plans to its clients. Its UK network was also fined £5.6 million (RM33.34 million) for failures in auditing Babcock International Group plc.

Source: TheEdge - 17 Apr 2024

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