Hong Kong’s audit regulator said it had not found evidence to support many of the explosive allegations against PwC made in an apparent whistleblower report over the firm’s work for collapsed Chinese property developer Evergrande.
The Accounting and Financial Reporting Council on Wednesday rejected claims that PwC’s business in Hong Kong had faulty quality controls and other deficiencies, findings that boost the Big Four accounting firm’s effort to quell client concerns triggered by its work.
The AFRC said it was still investigating PwC Hong Kong’s work for Evergrande itself, however, and PwC’s sister firm in mainland China is separately braced for penalties from Beijing as a result of its audit of an Evergrande subsidiary, the Financial Times previously reported.