The Hong Kong High Court is set to hold a one-day public hearing on Monday regarding efforts by Evergrande’s liquidators to pursue claims against PwC International over auditing issues.
The hearing before Deputy Judge Patrick Fung Pak-tung concerns the liquidators’ attempts to seek claims from PwC related to the property developer’s audits. It comes after recent regulatory actions against the firm.
Last month, Hong Kong’s Securities and Futures Commission reached an agreement with PwC Hong Kong to pay HK$1 billion in compensation to minority shareholders, citing serious breaches of auditors’ professional duties. The Accounting and Financial Reporting Council separately fined PwC HK$300 million and imposed a six-month practice restriction.
The AFRC also found numerous serious audit deficiencies in PwC’s work on Evergrande’s 2019 and 2020 accounts. Two former partners were each fined HK$5 million over the matter.
