If you’ve been reading the news then you know about the Chinese real estate company Evergrande.
Evergrande is having financial difficulties that could impact global markets.
Well people are now finding out that PwC was their auditor. Multiple news sites are saying that PwC gave Evergrande a clean bill of health. This is not true. PwC did not even audit their financials.
In the report, Evergrande’s board of directors mentioned their worries about the companies finances.
This is yet another failing company that will be blamed on the auditors as if they were the people that ran the company into the ground. The people responsible are management. Yes accountants can do more, but they consistently don’t do enough. They don’t do enough because of the way they are run. Even if the big 4 accounting firms were run better, this does not mean they should be held responsible for companies going under.