Evergrande Got a Clean Bill of Health From PWC Months Before Collapse

PricewaterhouseCoopers earned over forty million dollars in fees auditing China Evergrande and signed off on the accounts presented to them by management for all of those years. PWC is likely to face criticism over the level of push back they gave to management over accounting policies that could have shown warning signs about the company’s financial health many years before the collapse.

Around the world, auditors have faced criticism when companies have collapsed, and auditor negligence cases have become more common in recent years. In the UK The Financial Reporting Council has begun a probe into the accountancy firms that audited Greensill Capital and Wyelands Bank, a bank controlled by Sangeev Gupta which lent money to his other firms and is central to the Greensill scandal.

NMC Health, Luckin Coffee and Wirecard are three recent financial scandals and one factor that they have in common, is that EY, through its affiliates in various countries, was the auditor for all three.

A British high court ordered EY to pay a large settlement to a former partner in Dubai last year, for retaliating against him for blowing the whistle on an alleged money-laundering scheme by a client.

These cases have dealt a series of heavy blows to EY’s credibility and integrity, even though EY has said it was unaware of longtime financial shenanigans by its clients and was duped along with everyone else.

The quality of Evergrande’s assets is also likely be one of the main issues picked over if the lid is lifted by its creditors.



Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Patreon Page:   / patrickboyleonfinance  

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here:   / patrickeboyle  

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlD...
Apple: https://podcasts.apple.com/us/podcast...
Google Podcasts: https://tinyurl.com/62862nve

Join this channel to support making this content:
   / @pboyle