Hong Kong’s audit watchdog to investigate PwC audit role in Evergrande

Hong Kong’s audit watchdog Accounting and Monetary Reporting Council (AFRC) said on Friday (Apr 19) it would investigate PricewaterhouseCoopers’ (PwC) management in auditing China Evergrande Neighborhood over a whistleblower characterize circulating within the media.

“The characterize expressed critical considerations regarding possible alleged deficiencies in PricewaterhouseCoopers’ programs of quality management and the usual of the audits of China Evergrande Neighborhood,” AFRC said in an announcement.

The characterize also claimed the auditor failed to set up acceptable personnel to key positions, “which might per chance also need compromised the monitoring capabilities of the firm”, the watchdog said, citing the characterize.

PwC resigned as Evergrande’s auditor early final One year amid disagreements over issues concerning to the audit of its 2021 accounts.

Evergrande and PwC were investigated by Hong Kong’s audit regulator since 2021 over the developer’s 2020 accounts.