China Suspends PwC Zhong Tian for Six Months, Fines 441 Million Yuan Over Evergrande Audit

Sep 13, 2024, 10:00 AM

Chinese authorities have imposed a six-month suspension on PwC Zhong Tian, also known as PwC China, and fined the firm a total of 441 million yuan ($62 million) for its auditing failures related to the collapsed property developer Evergrande. The penalties were announced by China’s Ministry of Finance and the China Securities Regulatory Commission, citing PwC's inadequate audit practices and failure to perform due diligence. PwC’s Guangzhou office has been ordered to shut down, and the firm has acknowledged the penalties and stated it will fully comply with the administrative actions. Additionally, the China Securities Regulatory Commission confiscated 27.7 million yuan of PwC's revenue involved in the Evergrande case and fined the unit 297 million yuan. The Ministry of Finance also announced a separate fine of 116 million yuan. The fines and suspension mark the toughest action yet by Beijing against a Big Four accounting firm.