Wed oct 20 2021
from Going Concern
Hong Kong audit watchdog investigating Evergrande and PwC [Reuters] Hong Kong’s audit regulator said on Friday it was investigating China Evergrande Group’s 2020 accounts and their audit by PwC because it had concerns about the adequacy of reporting on whether it could continue operating as a going concern. Cash-strapped Evergrande has been scrambling to divest some assets to repay creditors knocking on its doors. With more than $300 billion in liabilities, it has already missed three rounds of interest payments on its international bonds.
Evergrande crisis puts PwC role in spotlight [Financial Times] More on the Evergrande situtation: “Evergrande’s auditors — which have earned Rmb271m ($42m) since 2009 — signed off on the figures presented to them by management for years. And just like its peers who audited those UK companies, PwC may well face criticism over the level of challenge applied against management over accounting policies that could have shown warning signs about the company’s financial health. PwC has declined to comment on its audits of Evergrande as it is a live client engagement.”