China's Country Garden removes PwC as auditor
PwC) has resigned as its auditor following the property developer's recommendation, making it the latest Chinese company to sever ties with the troubled auditing firm.
PwC has been in trouble over its role in auditing China Evergrande Group since the developer was accused in March of a $78-billion fraud, resulting in an exodus of clientele, cost cuts and layoffs. Country Garden has appointed Hong Kong-based Zhonghui Anda CPA as its new auditor, at least until the conclusion of its next annual general meeting, it said.
«PwC is unable to fulfill the timetable requirements of the company for the publication of the audited consolidated financial statements for the year ended 31 December 2023 considering recent relevant matters,» Country Garden said in an exchange filing.
.More than 50 Chinese firms, including PwC's largest mainland client Bank of China, and many others which are state-owned enterprises or financial institutions, have either dropped PwC as their auditor or cancelled their plans to hire the firm in recent months.
«The board is of the view that it is in the best interests of the company and its shareholders, creditors… and other stakeholders to continue to appoint another auditor and complete the audit work as soon as practicable,» Country Garden said.
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