PwC Fined Millions in Hong Kong Over Evergrande Audit

Hong Kong has added millions of dollars in penalties against the global accounting firm PwC. The new fines stem from PwC’s auditing work for the troubled Chinese property developer Evergrande. Regulators in Hong Kong announced the increased penalty on Wednesday. They said PwC failed to follow proper auditing standards during its review of Evergrande’s financial reports. The new penalty brings the total fines against PwC in Hong Kong to over HK$800 million, or roughly $100 million. PwC acknowledged the decision. In a statement, the firm said it is reviewing the details. It also apologized for the audit failures. The case is part of a wider crackdown on financial misconduct in China. Evergrande, once one of the country’s largest developers, defaulted on its debt in 2021. That triggered a crisis in the property market. Regulators have since investigated the role of auditors and banks linked to the company.