China hits PwC with six month ban in record penalty over Evergrande audit

Chinese authorities have been examining PwC's role in Evergrande's accounting practices since the CSRC accused the developer in March of a $78-billion fraud over a period of two years through 2020.

PwC audited Evergrande for almost 14 years until early 2023.

PwC Zhong Tian said in a statement it accepts the audit work on Hengda fell below its own high standards. "We are determined to address the shortcomings and strengthen how we operate going forward."

The business suspension and fines are the toughest ever received by a Big Four accounting firm in China, and come against the backdrop of an exodus of clientele and layoffs at the firm in recent months.