PwC rapped over IPO negligence

Beijing regulators issued a warning to PricewaterhouseCoopers Zhong Tian, the main onshore arm of PwC in China, for failing to carry out due diligence in its initial public offering audits for data analysis service provider HCR.

The warning also concerns PwC China's annual audits for the A-share listed company in 2020 and 2021.

PwC China and its auditors failed to detect certain abnormalities and failed to reasonably assess the authenticity of the relevant transactions and the risk of fraud. In addition, they noted a lack of standardization in recording and filing of audit reports.

Meanwhile, police yesterday searched the PwC Australia office in Sydney as part of a probe into a former partner who leaked confidential government tax plans to the firm and its clients. A parliamentary inquiry earlier this year concluded that the firm had shared the data internally and covered up its use.

"This step is part of the existing investigation ... regarding the historical tax matter and is an investigation into individuals who have left the firm," a PwC Australia spokesperson said.

Staff reporter and Reuters