Scam charges against the world’s largest company, China could bring heavy penalties

A big scam has come to light in China. One of the world’s Big-4 audit firms is accused of being involved in an accounting scam. Now preparations are being made to impose heavy fines on this company soon. China’s Ministry of Finance may announce this at any time.

Here we are talking about PwC i.e. Price Water House Coopers LLP. It is one of the world's Big 4 audit firms and is now accused of being involved in a major accounting scandal in China. Not only this, China is also considering to stop the local operations of this company.

The biggest fraud was exposed

PwC's accounting scandal may be China's biggest ever financial fraud case. Citing sources with knowledge of the matter, a Bloomberg report said China's Ministry of Finance may soon announce heavy fines on PwC.

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Currently, the company is auditing China's largest real estate company Evergrande Group. The audit of the company will be completed this week, after which the finance ministry can announce the penalty anytime.

PwC will be fined so much

PwC could be fined 1 billion yuan (about $138 million), citing sources. This value in Indian rupees will be around 1150 crore rupees. Earlier, China's largest fine was imposed on Deloitte Touch Tohtsu in 2023. While the company was fined only 212 million yuan.

Along with the fine, there is a possibility of banning the local operations of the company. No response has been given yet from China's Ministry of Finance and PwC.