Financial Times said on February 17**: China Evergrande's liquidators are ready to sue PricewaterhouseCoopers over audit issues. Source**: Reuters Release date: February 17, 2024.On the last day of the Spring Festival holiday in the Year of the Dragon in 2024, there was a "thunderclap" on the other side of the ocean.
According to the latest report by Reuters on February 17, the Financial Times reported on Saturday, citing people familiar with the matter, that real estate developer China Evergrande (3333HK) is preparing its auditorsPricewaterhouseCoopers(PWC).
According to three people familiar with the matter, Du Aidi and Wong of Ammann, who were appointed as liquidators of Evergrande's Hong Kong-listed holding company last month, have spoken to at least two law firms, according to three people familiar with the matter.
The report quoted people familiar with the matter as sayingNegotiations are still in their early stages, and addedThe existence of negotiations does not mean that Evergrande's liquidators have found any evidence of misconduct on the part of PwC, nor does it mean that litigation will necessarily be instituted
The original article of the Reuters report is as follows:PwC served as Evergrande's auditor from 2009 until the outbreak of Evergrande's debt crisis in 2021. During this period, PwC issued an unqualified audit report on Evergrande's financial position. However, as Evergrande's debt crisis intensified, PwC's audit report on Evergrande was also questioned.feb 17 (reuters) -the liguidators of property developer china evergrande (3333.hk)c are preparing for apotential lawsuit against its auditor pricewaterhousecoopers (pwc), the financial times reported onsaturday, citing people with knowledge of the conversations。
the talks were at an early stage, the report cited the people as saying, adding that their existence did noindicate evergrande's liquidators had unearthed any evidence of wrongdoing by pwc, nor that a lawsuitwas certain to take place.
In October 2021, PricewaterhouseCoopers announced its resignation as an auditor of Evergrande. In the resignation statement, PwC said it was unable to obtain sufficient information and explanations to conduct the audit.
Evergrande's liquidators argued that PwC had been negligent in its audit of Evergrande, which led to Evergrande's debt crisis being covered up. If Evergrande's liquidators ultimately decide to sue PwC, it will be one of the largest lawsuits against the Big Four accounting firms worldwide.
Including @Mr. MatildaA number of Internet influencers have repeatedly called for mainland regulators to investigate PwC's audit compliance in response to the Evergrande thunderstorm.
However, as of now, there is no update on this in the Mainland.
According to public information, China Evergrande (3333HK) audits over the years are as follows:
Evergrande's parent company--- Evergrande Real Estate Group*** is not listed, but according to the relevant bond issuance announcements issued by it, the audit of Evergrande Real Estate over the years is as follows: