Hong Kong’s audit watchdog Accounting and Financial Reporting Council (AFRC) mentioned on Friday (Apr 19) it will examine PricewaterhouseCoopers’ (PwC) administration in auditing China Evergrande Group over a whistleblower report circulating within the media.
“The report expressed significant concerns regarding potential alleged deficiencies in PricewaterhouseCoopers’ systems of quality management and the quality of the audits of China Evergrande Group,” AFRC mentioned in a press release.
The report additionally claimed the auditor did not assign acceptable personnel to key positions, “which might have compromised the monitoring functions of the firm”, the watchdog mentioned, citing the report.
PwC resigned as Evergrande’s auditor early final yr amid disagreements over issues referring to the audit of its 2021 accounts.
Evergrande and PwC have been investigated by Hong Kong’s audit regulator since 2021 over the developer’s 2020 accounts.
https://www.channelnewsasia.com/business/china-evergrande-pwc-pricewaterhousecoopers-audit-watchdog-4278476
