The Hong Kong Accounting and Finance Reporting Bureau will investigate the role played by PwC's Yongdao (PWC) in the lack of accounting in the Chinese real estate giant Evergrande Group.
Comprehensive Agencence France -Presse and Hong Kong reports reported that the Hong Kong Council Finance Bureau said in a statement on Friday (April 19) that the official noticed that a report letter was circulating and was widely reported by the media.The report letter expressed serious concerns about the quality management system of PricewaterhouseCoopers, as well as the potential lack of the quality of Evergrande.
The main allegations of reporting letters include the failure to establish and maintain an effective quality monitoring system to ensure the quality of the audit and comply with professional standards and applicable laws and regulations.
The report letter also accused of accusing that when providing audit and other services to China Evergrande Group, Pwi failed to comply with professional guidelines for the acceptance and maintenance of customer relationships; failed to assign appropriate personnel responsible for accountant affairsThe key positions of the quality monitoring system; failed to perform appropriate audit procedures for the audit of Evergrande Group.
The Hong Kong Council said that, in view of the severity of the above allegations, the official responsibility launched an investigation.
The Finance Bureau emphasized that when there are any misrepresentation or violations of the Regulations of the Accounting and Financial Reporting Bureau, they will not hesitate to take severe law enforcement actions to the officers and individuals.
In this regard, Pwa said that the company knew the above statement and would continue to cooperate with the regulatory agency.
In March of this year, the China Securities Regulatory Commission accused Evergrande Real Estate Group's fictional revenue of 214 billion yuan in 2019 (RMB, Same, Same as new yuan), and the fictional revenue in 2020 was 350 billion yuan.Income is 564 billion yuan.
PricewaterhouseCoopers, one of the "Four Congress" accounting firms in the world, has served as Evergrande Audit Institution for 14 years. Until last year, he resigned from Evergrande's 2021 account audit.Bloomberg reported in March this year that China is investigating the role played by Pricewater Yongdao in the accounting operation of Evergrande Group.
Recently, an open letter entitled "Who brought Pricewater Yongdao into the fire pit of Evergrande" circulated on the Internet.People are Pacific Pacific Asia Pacific and Chinese chairman Zhao Baiji, and reveal many issues such as the quality management of auditing in the internal audit of Pwa.
Pwa Yongdao on Tuesday (April 16) issued a statement on the WeChat public account and refuted that the anonymous letter contains false information about PwC and some partnersEdem the company's business reputation and legitimate rights.PwC has taken response measures and investigated in -depth investigations.
