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Chinese authorities have banned PwC China for six months and fined it Rmb441mn ($62mn) for auditing failures related to the collapsed property developer Evergrande, in Beijing’s toughest action yet against a Big Four firm.
The move follows a March announcement by China’s securities regulator that PwC China had approved Evergrande’s accounts even though the developer had inflated mainland revenues by nearly $80bn in the two years before its default in 2021.
The penalty surpasses the $31mn fine and three-month partial business ban imposed on Deloitte last year for “serious audit deficiencies” related to its work with China Huarong Asset Management, one of China’s largest bad-debt managers.
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