PwC denies anonymous letter allegations, plans investigation
PRICEWATERHOUSECOOPERS (PwC) said it will investigate an anonymous letter circulating on social media that made “false allegations” about the company and its partners over its role in auditing China Evergrande Group.
“We believe the letter contains inaccurate statements” that “could tarnish PwC’s reputation and infringe” its legal rights, the company said on Tuesday (Apr 16) PwC Hong Kong has reported it to relevant authorities, and is “treating this incident with high priority”, it said.
PwC has been under the spotlight after China launched one of the biggest investigations of financial fraud in history. Authorities said developer Evergrande’s main onshore unit overstated its revenue in the two years through 2020. The government is examining PwC’s role as a former auditor for the real estate company, sources familiar said in March.
The letter questioned PwC’s role in Evergrande’s accounting fraud among other corporate governance issues.
Bloomberg was unable to verify the authenticity of the letter.
The auditor has run into trouble in other regions. It pledged to boost governance controls in Australia over questions of a serious conflict of interest in leaking government tax plans to its clients. Its UK network was also fined £5.6 million (S$9.5 million) for failures in auditing Babcock International Group. BLOOMBERG
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Stablecoin issuer Tether invests US$200 million in brain-computer interface company
Asset manager Value Partners cuts one-third of China staff in overhaul: sources
Abu Dhabi sovereign wealth fund plans debut dollar bond sale
Deutsche Bank merger ends Numis dealmakers’ boutique freedom
China’s mega banks post rare profit drops on margin squeeze
Money launderer Su Baolin sentenced to 14 months’ jail