HONG KONG — Growing scrutiny of PwC’s audit work on bankrupt developer China Evergrande Group is stirring concern over the impact on the Big Four consulting firms’ relationships with Chinese companies and could prompt a tightening of accounting procedures on existing clients.
Regulators in the city have launched an investigation into PwC over whistleblower allegations about the firm’s handling of Evergrande, the world’s most-indebted developer, with over $300 billion in liabilities. The developer is now in liquidation under a Hong Kong court order. The probe has put the audit industry on heightened alert.
